Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation
Review of International Business and Strategy
ISSN: 2059-6014
Article publication date: 14 October 2022
Issue publication date: 24 March 2023
Abstract
Purpose
This study aims to assess the potential mediating effects of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation.
Design/methodology/approach
This study was a cross-sectional design, where the structured questionnaire was used in gathering data from 301 indigenous Ghanaian firms. The path estimation was conducted by running structural equation modelling in AMOS v.23.
Findings
It was concluded that government support had a significant positive effect on Ghanaian indigenous firms’ degree of internationalisation. Formal network was found to partially mediate the relationship between government support and indigenous firms’ degree of internationalisation. Finally, it was concluded that informal networks had no mediating effect.
Research limitations/implications
One limitation is that the effect of the government support and network strategy was only explored on indigenous exporters, meaning that exporters which did not fall within the definition of indigenous firms were excluded from the study. Future studies could conduct a comparative study on the same variables, using indigenous and non-indigenous firms.
Practical implications
It is recommended that Ghanaian exporters should participate in government training and workshop programmes focussing on building export business strategies and networking to improve export activities.
Originality/value
This study’s unique contribution is its investigation of how networking portfolio, including formal and informal ties, helps explain the nexus between government support and the internationalisation of local firms in the developing market, such as Ghanaians.
Keywords
Acknowledgements
The authors express gratitude to the GEPA for releasing their export directorate to the authors. Also, the authors are thankful to the individual exporters who responded to the authors’ questionnaire.
Credit authorship contribution statement: The first author was responsible for framing and developing the paper; the second author engaged in the general outlining and strengthening of the paper; the third author engaged in data analysis, and the last author also engaged in the strengthening of the paper.
Citation
Takyi, L.N., Naidoo, V., Dogbe, C.S.K. and Akoto, E. (2023), "Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation", Review of International Business and Strategy, Vol. 33 No. 3, pp. 517-532. https://doi.org/10.1108/RIBS-01-2022-0001
Publisher
:Emerald Publishing Limited
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