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

Henry Boateng, George Oppong Appiagyei Ampong, Diyawu Rahman Adam, Kwame Simpe Ofori, Robert Ebo Hinson

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)633-649
Number of pages17
JournalVINE Journal of Information and Knowledge Management Systems
Volume52
Issue number5
DOIs
Publication statusPublished - 24 Oct 2022

Keywords

  • Export performance
  • Foreign business knowledge
  • Foreign institutional knowledge
  • SMEs
  • Social capital

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