NEXUS BETWEEN INFORMAL NETWORKS AND RISK-TAKING: IMPLICATIONS FOR IMPROVING THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN NIGERIA

LAWAL, FATAI A and ADEGBUYI, OMOTAYO A and IYIOLA, OLUWOLE O and AYOADE, OMISADE E and TAIWO, AKEEM A (2018) NEXUS BETWEEN INFORMAL NETWORKS AND RISK-TAKING: IMPLICATIONS FOR IMPROVING THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN NIGERIA. Academy of Strategic Management Journal, 17 (2). pp. 1-14. ISSN 1939-6104-17-2-182

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Abstract

An evolving dimension of entrepreneurial research reveals that entrepreneurial orientation and entrepreneurial networks are critical factors in fostering performance outcomes. However, there is death of studies that examined the relationship between risk-taking dimension of entrepreneurial orientation and informal networks on SMEs performance. This study set out to examine the influence of risk-taking and informal networks on the performance of selected small and medium enterprises in Nigeria. Descriptive research design in which questionnaire was used to collect data from 381 SMEs owner-managers guided the study. Correlation, multiple regression and Structural Equation Modeling (SEM) were employed to test the hypotheses with Confirmatory Factor Analysis (CFA) for measurement model validation. The results revealed that both risk-taking and informal networks have significant positive effect on SMEs performance. It is recommended that SMEs managers should strive to embrace risk-taking as well as optimize the opportunities offered by informal networks potential towards expanding their contacts and enhance SMEs performance. The study contributes to entrepreneurial orientation dimension and informal institutional framework through the integration of risk-taking and informal networks with SMEs performance.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Miss Ayomikun Ogunbadejo
Date Deposited:	11 Aug 2020 11:01
Last Modified:	11 Aug 2020 11:01
URI:	http://eprints.federalpolyilaro.edu.ng/id/eprint/1127

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