Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation
Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation
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Date
2022
Authors
Takyi, Lydia Nyankom
Naidoo, Vannie
Dogbe, Courage Simon Kofi
Akoto, Edward
Journal Title
Journal ISSN
Volume Title
Publisher
Emerald Publishing Limited
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.
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Citation
Takyi, L. N., Naidoo, V., Dogbe, C. S. K., & 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, 33(3), 517-532.