Dimensions of Entrepreneurial Networks on Firm Performance: The Moderating Role of Entrepreneurial Orientation

Abstract

A knowledge gap remains regarding how entrepreneurial orientation (EO) moderates the relationship between entrepreneurial networks and firm performance. This study contributes to the entrepreneurship literature by examining EO as a moderator rather than a main-effect predictor. It examines primary data collected from 224 entrepreneurs in small firms in Assam, India. In the hierarchical regression model, EO was associated with significantly improved firm performance. Moreover, the interactions between network size and EO, network density and EO, and supportive network and EO significantly and positively impacted firm performance. Therefore, this study reveals that the EO scales developed in Western developed countries can be adapted to a developing country such as India. It also shows that EO can provide entrepreneurs with a significant source of motivation, leading to superior firm performance. A key implication of these findings is that policymakers and development agencies could actively promote both EO and networking capabilities among micro- and small-sized enterprises, especially in less developed countries, by designing context-specific training, mentorship and support programmes, as strengthening these aspects can enhance firm performance.

Keywords

Entrepreneurial orientation entrepreneurial networks firm performance small firms moderator variable

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