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Impact of Knowledge and Network Ties on the Performance of Micro and Small Technical Enterprises in Southwestern Nigeria

Year 2015, Volume: 4 Issue: 2, 77 - 104, 01.12.2015

Emmanuel Makanjuola Ogunjemılua Titilayo Olubunmi Olaposı Mathew Olugbenga Ilorı

Abstract

The study examined the knowledge areas of operators of micro and small technical enterprises MSTEs in Southwestern Nigeria. It investigated the extents and depth of operators’ collaborations and evaluated the influence of operators’ knowledge and network ties on the performance of micro and small technical enterprises MSTEs . This was with a view to recommending policy interventions that could influence the performance of MSTEs. The study covered technical entrepreneurs in Lagos, Ekiti, Oyo and Ondo States. Data were collected from primary and secondary sources. Primary data were collected using one set of questionnaire and interview. Multi-stage sampling technique was used for the study. Three Local Governments were randomly selected from each of the states. Twenty five micro and small technical enterprises were purposively-randomly selected in each Local Government, making a total of three hundred respondents. The questionnaire elicited information on the socio-economic characteristics, knowledge areas, extents and depth of collaboration and the performance of the respondents. Secondary data were sourced from the records of the firms. Data collected were analysed using descriptive statistics such as frequency, percentages, mean and standard deviation, and inferential statistics such as multinomial logistics regression and ANOVA. Results showed that comprehensiveness of knowledge areas and forms of collaborations significantly influenced performance measures; profit X2= 102.101, p= 0.000** , sales volume X2= 87.086, p= 0.000** , and staff strength X2 = 47.313, p = 0.000** . Certain control measures were significant on performance measures, some were not. The study concluded that improved knowledge of the operators of MSTEs and effective collaboration among them could lead to significant improvement of their performance.

Keywords

Knowledge Network Ties and Performance

References

  • Adeyemo F. and Olatunji, O. (2004). Technology training for small scale entrepreneurs in D. Okongwu, and A. Saleh (eds), Fundamental Issues in Entrepreneurship, Yaba, lagos, Apex Books limited.
  • Adeyemo F.S. (2014).Assessment of Support Services Provided by Institutions to Technical Entrepreneurs in South Western Nigeria: Unpublished PhD. Thesis, Obafemi Awolowo University, Ile-Ife, Nigeria.
  • Aldrich, H., Elam, A. and Reece, P. (1997) ‘Strong Ties, Weak Ties and Strangers’ in Entrepreneurship in a Global Context, (Ed.) S. Birley and I. MacMillan, London, Routledge.
  • Anderson, C. (2008). The long tail: Why the future of business is selling less of more, Hyperion Books.
  • Arku, G. (2002). Collaboration in industry: Empirical findings among small electronics manufacturing firms in the Greater Toronto Area. Geo Journal, 57, 325-336.
  • Asheim, B. and Coenen, L. (2005). “Knowledge bases and regional innovation systems: Comparing Nordic clusters”. Research Policy 34, 1173-1190.
  • Barr, A. (2000a). “Social capital and technical information flows in the Ghanaian manufacturing sector”. Oxford Economic Papers, 52(3), 539-559. http://dx.doi.org/10.1093/oep/52.3.539.
  • Baum, J., Calabrese, T. and Silverman, B. (2000). “Don’t Go it Alone: Alliance Network Composition and Startups performance in Canadian Biotechnology,” Strategic Management Journals. 21(3), 267.
  • Birley, S. Cromie, S. and Myers, A. (1990) ‘Entrepreneurial Networks: Their Emergence in Ireland and Overseas’, International Small Business Journal, 9(4), 56-74.
  • Borgatti, P., and Foster P. (2003). “The Network Paradigm in Organizational Research: A Review and Typology,” Journal of Management 29(6), 991-1013.
  • Campbell, J. L. (2006). “Institutional Analysis and the Paradox of Corporate Social Responsibility,” American Behavioural Scientist. 49, 925-938.
  • Chen, C., Tzeng L., Ou, W., and Chang, K. (2007). “The Relationship among Social Capital, Entrepreneurial Orientation, Organizational Resources and Entrepreneurial Performance for New Ventures”. Contemporary Management Research 3(3) 213-232.
  • Chrisma, J., McMullan, E., and Hall, J. (2005). “The Influence of Guided Preparation on the Long-Term Performance of New Ventures,” Journal of Business Venturing, 20, 769-791.
  • Curran, J., Blackburn, R. and Kitching, J. (1995) Small Businesses, Networking and Networks: A Literature Review, Policy Survey and Research Agenda, Small Business Research Centre, Kingston University, Kingston upon Thames.
  • Dada, A. D., Siyanbola, W. O., Ilori, M.O. and Olamide O. O. (2011): On the Nexus between Technological Innovations and Competitions of SMEs in a Developing Economy. Technology and the Global Challenges: Security, Energy, Water and the Environment. Proceedings of the 20th International Conference on Management of Technology (IAMOT 2011), Miami Beach, Florida, USA, April 10-14.
  • Dada, A.D. (2014). Assessment of Technological Capability and Innovations in the Nigeria Cassava Processing Industry. Unpublished PhD. Thesis, Obafemi Awolowo University, Ile-Ife, Nigeria.
  • Elisa, G. (2006). “The uneven and selective nature of cluster knowledge networks: evidence from the wine industry”. Lund University Sweden.
  • Fenstermacher, G. D. (1995). From Camelot to Chechnya: The journey of an education College for Teacher Education.
  • Giuliani, E., and Bell, M. (2005): When Micro Shapes the Meso: Learning Networks in a Chilean Wine Cluster. Research Policy, 47-68.
  • Grant, R. M. (1996). “Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal. 17, 109-122.
  • Greve, A., and Salaff J. (2003). “Social Networks and Entrepreneurship” Entrepreneurship, Theory and Practice 28(1), 1-22.
  • Hite, J. M., and Hesterly, W. S. (2001): “The Evolution of Firm Networks: From Emergence to Early Growth of the Firm,” Strategic Management Journal 22(3), 275 – 286.
  • Johannisson, B. (1999) Networking and Entrepreneurial Growth: in Sexton, D.L. and Landstrom, H. (eds.) The Blackwell Handbook of Entrepreneurship 368.386. Oxford, Blackwell.
  • Kasim, M. O. (2002): An Overview of technology utilization within the SMEs. Paper presented at the 6th International Conference, Lagos, October 28, 7-9.
  • Keeble, D, Wilkinson F. 1999. Collective learning and knowledge development in the evolution of regional clusters of high technology SMEs in Europe. Regional Studies 33 (4): 295-303.
  • Kogut, B., and Zander (1992). “Knowledge of the Firm, Combinative Capabilities and the Replication of Technology,” Organization Science 3(3), 383-397.
  • Li, H., and Zhang, Y. (2007): “The Role of Managers’ Political Networking and Functional Experience in New Venture Performance: Evidence from China’s Transition Economy,” Strategic Management Journal 28, 791-804.
  • Lyon, F. (2000). Trust, networks and norms: The creation of social capital in agricultural economies in Ghana. World Development 28, 4, 663.682.
  • Malmberg, A. (2003). Beyond the cluster - Local milieus and global economic connections. In Remaking the Global Economy, ed. J Peck, H.W.C. Yeung. London: Sage Publications.
  • Maria, E., Tobias F., and Susanne, O. (2013) “Leveraging on open innovation: A study of why organizations engage in open innovation collaboration” NFF conference in Iceland.
  • McGhee, J. E., Dowling, M. J. and Meggison, W. L. (1995) Co-operative Strategy and New Venture Performance: The Role of Business Strategy and Managerial Experience, Strategic Management Journal, 16: 563-80.
  • National MSME Collaborative Survey (2010), Survey Report on Micro, Small Medium Enterprises (NMSMECS) in Nigeria. Preliminary Report.
  • Osotimehin, K. O., Jegede, C. A., Akinlabi, B. H (2012). “An Evaluation of the Challenges and prospects of Micro and Small Scale Enterprises Development in Nigeria. American international journal of Contemporary Research. 2 (4).
  • Putnam, R. D. (2001), Social capital: Measurement and consequences. Canadian Journal of Policy Research, 2(1), 41-51.
  • Rahmani, Z. and Iran, M. (2010).The interplay of social aspects of entrepreneurship, absorptive capacity and innovation performance: a conceptual framework. International Conference on Business and Economics Research IACSIT Press, Kuala Lumpur, Malaysia.
  • Shaw, E. (1998) Social Networks: Their Impact on the Innovative Behaviour of Small Service Firms, International Journal of Innovation Management, 2(2), 201- 222.
  • Shaw, E. and Conway, S. (2000) Networking and the Small Firm in Carter, S. and Jones-Evans, D. (eds.) Enterprise and Small Business: Principles, Practice and Policy 367.383. Harlow, Pearson Education.
  • Smith, K. G., Collins, C, J. and Clark K. D. (2005). “Existing Knowledge. Knowledge Creation Capability and the Rate of New Product Introduction in HighTechnology Firms” Academy of Management Journal 48(2), 346-357.
  • Sullivan D. and Marvel M. (2011). “How Entrepreneurs’ Knowledge and Network Ties Relate to the Number of Employees in New SMEs”. Journal of small Business Management, 185-206.
  • Udaejah, G. (2006). “Industrial Firms Lose N 38 Billion to Power Outage”. The Guardian August, 29, 3.
  • Uzor, O. O. (2004). Small and Medium Scale Enterprises Cluster Development in South Eastern Region of Nigeria. Institute for World Economics and International Management, 5-15.
  • West, G. P. III, and Noel T. W. (2009). “The Impact of Knowledge Resources on New Venture Performance” Journal of Small Business Management 47(1), 1-22.
  • Wood, J.S. (2005). “The Development and Present State of the Theory of Entrepreneurship”, in Product and Asset markets. Accessed on 25/10/2014.
  • Wu, L. Wang, C., Chen, C., and Pan, L. (2008). “Internal Resources, External Network, and Competitiveness during the Growth Stage: A Study of Taiwanese High-Tech Ventures,” Entrepreneurship, Theory and Practice 32(3), 529-549.
  • Yu, T. (2001). “Entrepreneurial Alertness and Discovery,” The Review of Austrian Economics 14(1), 47-63.

Impact of Knowledge and Network Ties on the Performance of Micro and Small Technical Enterprises in Southwestern Nigeria

Year 2015, Volume: 4 Issue: 2, 77 - 104, 01.12.2015

Emmanuel Makanjuola Ogunjemılua Titilayo Olubunmi Olaposı Mathew Olugbenga Ilorı

Abstract

References

  • Adeyemo F. and Olatunji, O. (2004). Technology training for small scale entrepreneurs in D. Okongwu, and A. Saleh (eds), Fundamental Issues in Entrepreneurship, Yaba, lagos, Apex Books limited.
  • Adeyemo F.S. (2014).Assessment of Support Services Provided by Institutions to Technical Entrepreneurs in South Western Nigeria: Unpublished PhD. Thesis, Obafemi Awolowo University, Ile-Ife, Nigeria.
  • Aldrich, H., Elam, A. and Reece, P. (1997) ‘Strong Ties, Weak Ties and Strangers’ in Entrepreneurship in a Global Context, (Ed.) S. Birley and I. MacMillan, London, Routledge.
  • Anderson, C. (2008). The long tail: Why the future of business is selling less of more, Hyperion Books.
  • Arku, G. (2002). Collaboration in industry: Empirical findings among small electronics manufacturing firms in the Greater Toronto Area. Geo Journal, 57, 325-336.
  • Asheim, B. and Coenen, L. (2005). “Knowledge bases and regional innovation systems: Comparing Nordic clusters”. Research Policy 34, 1173-1190.
  • Barr, A. (2000a). “Social capital and technical information flows in the Ghanaian manufacturing sector”. Oxford Economic Papers, 52(3), 539-559. http://dx.doi.org/10.1093/oep/52.3.539.
  • Baum, J., Calabrese, T. and Silverman, B. (2000). “Don’t Go it Alone: Alliance Network Composition and Startups performance in Canadian Biotechnology,” Strategic Management Journals. 21(3), 267.
  • Birley, S. Cromie, S. and Myers, A. (1990) ‘Entrepreneurial Networks: Their Emergence in Ireland and Overseas’, International Small Business Journal, 9(4), 56-74.
  • Borgatti, P., and Foster P. (2003). “The Network Paradigm in Organizational Research: A Review and Typology,” Journal of Management 29(6), 991-1013.
  • Campbell, J. L. (2006). “Institutional Analysis and the Paradox of Corporate Social Responsibility,” American Behavioural Scientist. 49, 925-938.
  • Chen, C., Tzeng L., Ou, W., and Chang, K. (2007). “The Relationship among Social Capital, Entrepreneurial Orientation, Organizational Resources and Entrepreneurial Performance for New Ventures”. Contemporary Management Research 3(3) 213-232.
  • Chrisma, J., McMullan, E., and Hall, J. (2005). “The Influence of Guided Preparation on the Long-Term Performance of New Ventures,” Journal of Business Venturing, 20, 769-791.
  • Curran, J., Blackburn, R. and Kitching, J. (1995) Small Businesses, Networking and Networks: A Literature Review, Policy Survey and Research Agenda, Small Business Research Centre, Kingston University, Kingston upon Thames.
  • Dada, A. D., Siyanbola, W. O., Ilori, M.O. and Olamide O. O. (2011): On the Nexus between Technological Innovations and Competitions of SMEs in a Developing Economy. Technology and the Global Challenges: Security, Energy, Water and the Environment. Proceedings of the 20th International Conference on Management of Technology (IAMOT 2011), Miami Beach, Florida, USA, April 10-14.
  • Dada, A.D. (2014). Assessment of Technological Capability and Innovations in the Nigeria Cassava Processing Industry. Unpublished PhD. Thesis, Obafemi Awolowo University, Ile-Ife, Nigeria.
  • Elisa, G. (2006). “The uneven and selective nature of cluster knowledge networks: evidence from the wine industry”. Lund University Sweden.
  • Fenstermacher, G. D. (1995). From Camelot to Chechnya: The journey of an education College for Teacher Education.
  • Giuliani, E., and Bell, M. (2005): When Micro Shapes the Meso: Learning Networks in a Chilean Wine Cluster. Research Policy, 47-68.
  • Grant, R. M. (1996). “Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal. 17, 109-122.
  • Greve, A., and Salaff J. (2003). “Social Networks and Entrepreneurship” Entrepreneurship, Theory and Practice 28(1), 1-22.
  • Hite, J. M., and Hesterly, W. S. (2001): “The Evolution of Firm Networks: From Emergence to Early Growth of the Firm,” Strategic Management Journal 22(3), 275 – 286.
  • Johannisson, B. (1999) Networking and Entrepreneurial Growth: in Sexton, D.L. and Landstrom, H. (eds.) The Blackwell Handbook of Entrepreneurship 368.386. Oxford, Blackwell.
  • Kasim, M. O. (2002): An Overview of technology utilization within the SMEs. Paper presented at the 6th International Conference, Lagos, October 28, 7-9.
  • Keeble, D, Wilkinson F. 1999. Collective learning and knowledge development in the evolution of regional clusters of high technology SMEs in Europe. Regional Studies 33 (4): 295-303.
  • Kogut, B., and Zander (1992). “Knowledge of the Firm, Combinative Capabilities and the Replication of Technology,” Organization Science 3(3), 383-397.
  • Li, H., and Zhang, Y. (2007): “The Role of Managers’ Political Networking and Functional Experience in New Venture Performance: Evidence from China’s Transition Economy,” Strategic Management Journal 28, 791-804.
  • Lyon, F. (2000). Trust, networks and norms: The creation of social capital in agricultural economies in Ghana. World Development 28, 4, 663.682.
  • Malmberg, A. (2003). Beyond the cluster - Local milieus and global economic connections. In Remaking the Global Economy, ed. J Peck, H.W.C. Yeung. London: Sage Publications.
  • Maria, E., Tobias F., and Susanne, O. (2013) “Leveraging on open innovation: A study of why organizations engage in open innovation collaboration” NFF conference in Iceland.
  • McGhee, J. E., Dowling, M. J. and Meggison, W. L. (1995) Co-operative Strategy and New Venture Performance: The Role of Business Strategy and Managerial Experience, Strategic Management Journal, 16: 563-80.
  • National MSME Collaborative Survey (2010), Survey Report on Micro, Small Medium Enterprises (NMSMECS) in Nigeria. Preliminary Report.
  • Osotimehin, K. O., Jegede, C. A., Akinlabi, B. H (2012). “An Evaluation of the Challenges and prospects of Micro and Small Scale Enterprises Development in Nigeria. American international journal of Contemporary Research. 2 (4).
  • Putnam, R. D. (2001), Social capital: Measurement and consequences. Canadian Journal of Policy Research, 2(1), 41-51.
  • Rahmani, Z. and Iran, M. (2010).The interplay of social aspects of entrepreneurship, absorptive capacity and innovation performance: a conceptual framework. International Conference on Business and Economics Research IACSIT Press, Kuala Lumpur, Malaysia.
  • Shaw, E. (1998) Social Networks: Their Impact on the Innovative Behaviour of Small Service Firms, International Journal of Innovation Management, 2(2), 201- 222.
  • Shaw, E. and Conway, S. (2000) Networking and the Small Firm in Carter, S. and Jones-Evans, D. (eds.) Enterprise and Small Business: Principles, Practice and Policy 367.383. Harlow, Pearson Education.
  • Smith, K. G., Collins, C, J. and Clark K. D. (2005). “Existing Knowledge. Knowledge Creation Capability and the Rate of New Product Introduction in HighTechnology Firms” Academy of Management Journal 48(2), 346-357.
  • Sullivan D. and Marvel M. (2011). “How Entrepreneurs’ Knowledge and Network Ties Relate to the Number of Employees in New SMEs”. Journal of small Business Management, 185-206.
  • Udaejah, G. (2006). “Industrial Firms Lose N 38 Billion to Power Outage”. The Guardian August, 29, 3.
  • Uzor, O. O. (2004). Small and Medium Scale Enterprises Cluster Development in South Eastern Region of Nigeria. Institute for World Economics and International Management, 5-15.
  • West, G. P. III, and Noel T. W. (2009). “The Impact of Knowledge Resources on New Venture Performance” Journal of Small Business Management 47(1), 1-22.
  • Wood, J.S. (2005). “The Development and Present State of the Theory of Entrepreneurship”, in Product and Asset markets. Accessed on 25/10/2014.
  • Wu, L. Wang, C., Chen, C., and Pan, L. (2008). “Internal Resources, External Network, and Competitiveness during the Growth Stage: A Study of Taiwanese High-Tech Ventures,” Entrepreneurship, Theory and Practice 32(3), 529-549.
  • Yu, T. (2001). “Entrepreneurial Alertness and Discovery,” The Review of Austrian Economics 14(1), 47-63.
There are 45 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Emmanuel Makanjuola Ogunjemılua This is me

Titilayo Olubunmi Olaposı This is me

Mathew Olugbenga Ilorı This is me

Publication Date December 1, 2015
Published in Issue Year 2015 Volume: 4 Issue: 2

Cite

APA Ogunjemılua, E. M., Olaposı, T. O., & Ilorı, M. O. (2015). Impact of Knowledge and Network Ties on the Performance of Micro and Small Technical Enterprises in Southwestern Nigeria. Journal of Entrepreneurship and Innovation Management, 4(2), 77-104.