Nexus of generative influence and entrepreneurial networking: the mediating role of informational differences and opportunity identification among small and medium enterprises in Uganda

Abstract

The study aims at examining the mediating effect of informational differences and opportunity identification in the relationship between nexus of generative influence and entrepreneurial networking among small and medium enterprises (SMEs) in Uganda. A quantitative research approach was adopted for the study. The research is based on 228 survey responses which is comprised of SME owners/managers. The hypotheses were tested through partial least square structural equation modeling (PLS-SEM) using SmartPLS version 3.3.0 to analyze the quantitative responses and depict a model featuring entrepreneurial networking among SMEs. The study found that informational differences and opportunity identification positively and significantly mediate the relationship between nexus of generative influence and entrepreneurial networking. Policymakers should pay more attention to situations where the business owners/manager can act as a leader to create an enabling environment for employees to attach the value of dissimilarities in opinion and knowledge. In turn, understanding the business environment helps in exploiting prospects from entrepreneurial networks. The major limitation of the study is that the authors have used cross-sectional data to test the research hypotheses. This research contributes to the existing body of knowledge in the management of SMEs by empirically testing the anecdotal and conceptual evidence of entrepreneurial networking using complex adaptive system theory.