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Publication Details
AFRICAN RESEARCH NEXUS
SHINING A SPOTLIGHT ON AFRICAN RESEARCH
economics, econometrics and finance
Network structure and innovative performance of African entrepreneurs: The case of Uganda
Journal of African Economies, Volume 21, No. 4, Article ejs011, Year 2012
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Description
In this study, we examine the impact of social capital on entrepreneurial innovativeness in an African context. Social capital refers to resources that are embedded in a durable network of relationships. This article focuses specifically on the structure of networks. There are two main views on the relation between network structure and entrepreneurial performance. One view argues that closed networks are beneficial for cooperation and resource sharing, which is needed to implement an innovation, while another view argues that closed networks constrain entrepreneurs, since it is open networks that provide entrepreneurs with fresh information and ideas. Based on these arguments, we hypothesise that the relationship between the degree of constraint of a network and innovative performance has an inverted U-shape. We also examine the hypothesis that overlap between personal and business networks will hamper innovative performance of entrepreneurs because information will be less diverse and heterogeneous, and because re-distributive kinship obligations may act as a drain on entrepreneurial resources. We test our hypotheses using a recent survey of about 700 Ugandan rural and urban entrepreneurs. Our hypotheses are supported in the urban sample, but not in the rural sample. © The author 2012. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved.
Authors & Co-Authors
Rooks, Gerrit
Netherlands, Eindhoven
Technische Universiteit Eindhoven
Uganda, Kampala
Makerere University Business School
Szirmai, Adam
Netherlands, Maastricht
United Nations University – Maastricht Economic and Social Research Institute on Innovation and Technology
Sserwanga, Arthur
Uganda, Kampala
Makerere University Business School
Statistics
Citations: 24
Authors: 3
Affiliations: 3
Identifiers
Doi:
10.1093/jae/ejs011
ISSN:
09638024
e-ISSN:
14643723
Study Design
Cross Sectional Study
Study Approach
Quantitative
Study Locations
Uganda