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Informational differences and entrepreneurial networking among small and medium enterprises in Uganda

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Abstract

Small and medium enterprises (SMEs) establish formal and informal relations to access required resources for business competitiveness in Uganda. The major challenge of acquiring the required resources is attributed to inadequate management of informational differences among employees. This paper examines the relationship between informational differences and entrepreneurial networking among SMEs in Uganda. A mixed research method was deployed. Data were collected using a self-administered questionnaire from 228 SMEs. An interview guide was used for key informants. Stratified random sampling was used in selecting SMEs from the Kampala district, business owners/managers were purposively selected as the respondents. Multiple regression was used, and data were analysed using SmartPLS and Nvivo software. Findings confirmed a significant positive relationship between informational differences and entrepreneurial networking. Specifically, both divergent opinions and new knowledge values are positively associated with entrepreneurial networking. The study recommends that SME owners/managers should establish policies and flat structures as an opportunity to address non-linear interchanges of information. Managers should create an enabling environment for employees with divergent opinions to interact with each other to become innovative with new methods of accessing resources from entrepreneurial networks. Future studies should use a longitudinal approach to study the trends over years. This study extends knowledge of entrepreneurial networking using complexity systems leadership theory.

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Data availability

The data sets generated and analysed during the current study are not publicly available because the data is a segment of a larger survey and is currently being used for further studies. However, the dataset is available from the corresponding author on reasonable request.

Abbreviations

SMEs:

Small and medium enterprises

CSLT:

Complexity systems leadership theory

MCAR:

Missing completely at random

CFA:

Confirmatory factor analysis

EFA:

Exploratory factor analysis

IFI:

Increment fix index

TLI:

Tucker Lewis index

CFI:

Comparative Fix index

RMSEA:

Root mean square error of approximation

CVI:

Current validity index

SD:

Standard deviation

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Acknowledgements

The authors are grateful to the Almighty God.

Funding

The authors declared that no fund was requested nor received for this paper. The authors took care of all expenses.

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Authors and Affiliations

  1. Mayanja School of Working Adults, Cavendish University Uganda, Kampala, Uganda

    Samuel Mayanja, Waswa Balunywa & James R. K. Kagaari

  2. Makerere University Business School, Kampala, Uganda

    Samuel Mayanja, Joseph M. Ntayi, Waswa Balunywa & James R. K. Kagaari

  3. Department of Psychology, Kyambogo University, Kampala, Uganda

    Samuel Mayanja, Joseph M. Ntayi, John C. Munene, Waswa Balunywa & James R. K. Kagaari

  4. Faculty of Economics, Energy and Management Science, Makerere University Business School, Kampala, Uganda

    Joseph M. Ntayi & John C. Munene

  5. Faculty of Graduate Studies and Research, Makerere University Business School, Kampala, Uganda

    John C. Munene

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  1. Samuel Mayanja
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Contributions

SM collected the data and conceptualized the study. JMN analysed and interpreted the data. JCM guided the theoretical debate and logical flow of the study. WB guided on the global debates of leadership and management. JRK proofread the work. All Authors were involved in the preparation of the manuscript. The authors read and approved the final manuscript.

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Correspondence to Samuel Mayanja.

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Mayanja, S., Ntayi, J.M., Munene, J.C. et al. Informational differences and entrepreneurial networking among small and medium enterprises in Uganda. J Glob Entrepr Res 11, 563–577 (2021). https://doi.org/10.1007/s40497-021-00304-y

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