Informational differences and entrepreneurial networking among small and medium enterprises in Uganda

Abstract

Small and medium enterprises (SMEs) establish formal and informal relations to access required resources for business competitiveness in Uganda. The major challenge of acquiring the required resources is attributed to inadequate management of informational differences among employees. This paper examines the relationship between informational differences and entrepreneurial networking among SMEs in Uganda. A mixed research method was deployed. Data were collected using a self-administered questionnaire from 228 SMEs. An interview guide was used for key informants. Stratified random sampling was used in selecting SMEs from the Kampala district, business owners/managers were purposively selected as the respondents. Multiple regression was used, and data were analysed using SmartPLS and Nvivo software. Findings confirmed a significant positive relationship between informational differences and entrepreneurial networking. Specifically, both divergent opinions and new knowledge values are positively associated with entrepreneurial networking. The study recommends that SME owners/managers should establish policies and flat structures as an opportunity to address non-linear interchanges of information. Managers should create an enabling environment for employees with divergent opinions to interact with each other to become innovative with new methods of accessing resources from entrepreneurial networks. Future studies should use a longitudinal approach to study the trends over years. This study extends knowledge of entrepreneurial networking using complexity systems leadership theory.