The relationship between social interactions, trust, business network, external knowledge access and performance: a study of SMEs in Ghana

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Title

The relationship between social interactions, trust, business network, external knowledge access and performance: a study of SMEs in Ghana

Creator

Robert Ebo Hinson

Description

Abstract
Purpose – The purpose of this paper is to examine the role of social interaction ties, trust and business
networks in the acquisition of foreign business knowledge and foreign institutional knowledge. It also
assesses the effect of these types of knowledge on small and medium enterprises’ (SME) export performance.
Furthermore, this study determines the moderating role of absorptive capacity in the relationship between
foreign business knowledge, foreign institutional knowledge and export performance.
Design/methodology/approach – This study used a survey research design using data from
nontraditional SME exporters in Ghana. There were 257 respondents who were employees (managers/
owners) of SMEs in Ghana. The model was analyzed using structural equation modeling.
Findings – Social interaction ties, trust and business networks have a significant effect on the acquisition of
foreign business knowledge and foreign institutional knowledge. Furthermore, foreign business knowledge
and foreign institutional knowledge have a significant positive effect on export performance. The path
between foreign business knowledge and export performance is also moderated by absorptive capacity.
However, the moderating role of absorptive capacity in the relationship between foreign institutional
knowledge and export performance is not significant.
Originality – This study uses social capital to explain how SMEs acquire foreign business knowledge and
foreign institutional knowledge, and how both affect SMEs’ export performance. Furthermore, it tests the
moderating role of absorptive capacity in the relationship between foreign business knowledge, foreign
institutional knowledge and export performance.
Keywords Social capital, Foreign business knowledge, Foreign institutional knowledge, SMEs,
Export performance
Paper type Research paper

Publisher

Emerald Publishing Limited

Date

2022

Source

https://www.emerald.com/insight/content/doi/10.1108/vjikms-05-2020-0088/full/pdf