25 Jan 2024 | Peter Dwumah, Er-Menan Amaniampong, Janet Animwah Kissiedu & Eunice Adu Boahen
This study examines the association between entrepreneurial orientation (EO) and the performance of small and medium enterprises (SMEs) in Ghana, with a focus on the moderating role of network ties. The research is guided by resource-based and network theories. Data were collected from 201 SME owner-managers through face-to-face questionnaires. The results show that EO components (innovativeness, proactiveness, risk-taking propensity, and competitive aggressiveness) are significantly associated with SME performance. Network ties significantly influence the relationship between EO and SME performance, acting as a positive moderator. The study concludes that entrepreneurial orientation and network ties are crucial managerial resource capabilities for business survival in Ghana's informal sector. The findings have implications for policy interventions and programs aimed at improving SME performance.This study examines the association between entrepreneurial orientation (EO) and the performance of small and medium enterprises (SMEs) in Ghana, with a focus on the moderating role of network ties. The research is guided by resource-based and network theories. Data were collected from 201 SME owner-managers through face-to-face questionnaires. The results show that EO components (innovativeness, proactiveness, risk-taking propensity, and competitive aggressiveness) are significantly associated with SME performance. Network ties significantly influence the relationship between EO and SME performance, acting as a positive moderator. The study concludes that entrepreneurial orientation and network ties are crucial managerial resource capabilities for business survival in Ghana's informal sector. The findings have implications for policy interventions and programs aimed at improving SME performance.