ROLE OF SOCIAL NETWORKS ON THE PERFORMANCE OF WOMEN OWNED SMALL AND MEDIUM ENTERPRISES IN MIGORI COUNTY, KENYA

SCHOLASTICA A. OBIERO, ERIC NJERU, SIMON MURIITHI

Abstract


The general objective of the study was to establish the role of social networks on the performance of women owned small and medium enterprises in Migori County. The study used descriptive survey design. The target population for this study was 7,000 women who own SMEs in Migori County. The research adopted a sample size of 1400 women owned SMEs. The study employed stratified random sampling techniques to obtain the required sample sizes. The data collections instruments was structured questionnaires which were distributed to the respondents and were later collected for further analysis. This study used the Cronbach's Alpha for the five point Likert scale items. The study concluded that social network diversity is positively correlated with Performance of Women Owned Small and Medium Enterprises in Migori County. The correlation was also significance thus women running Small and Medium Enterprises in Migori County ought to lay more emphasis on social network diversity. It was further concluded that social network diversity allowed for consultation with members. The study concluded that women uses social network strength mostly for strategy analysis, objectives analysis, and problem analysis. It was also concluded that member’s religiously assist any of their own when they are in serious problems. From the study it was concluded that structure describes level of closeness or ties existing within a social group among the members; which could be assessed by the frequency of their meetings or interactions. The study recommended that the county government supplement the effort of these women by organizing workshops and training where expertise from different regions and government department would be brought to give a talk on women empowerment. National government should also partner with these women goods so as to provide them with loans from women development loans, uwezo funds as well as youth empowerment funds. 

Keywords:  Social Network Diversity, Size, Strength, Structure, Women Owned Enterprises, Migori County


Full Text:

PDF

References


Abel, T. (2016). Dynamics of Social Networks and Growth of Women-Owned Firms in Eritrea. Business Management Review, 18(1), 24-44.

Abdul-Jamak, A., Salleh, R., Sivapalan, S & Abdullah, A. (2011). Entrepreneurial challenges confronting micro-enterprise of Malaysian Malays. World Academy of Science, Engineering and Technology, 5(9), 862-867.

Ader, H. J., Mellenbergh, G. J., & Hand, D. J. (2008). Advising on research methods: A consultant's companion. Netherlands, Huizen: Van Kessel.

Ahuja, G., & Lampert, C.M. (2010).Entrepreneurship in the large corporation: A longitudinal study of how established firms create breakthrough inventions, Strategic Management Journal, 22(6), 521-543.

Aldrich, H. E., & Zimmer, C. (1986). Entrepreneurship through social networks. In Sexton, D., & Smilor, R. (Eds.), The art and science of entrepreneurship (pp. 3-23). Cambridge, MA: Ballinger.

Aldrich, H. E., & Cliff, J. E. (2003). The pervasive effects of family on entrepreneurship: Toward a family embeddedness perspective. Journal of business venturing, 18(5), 573-596.

Aldrich, H., & Ruef, M. (2006). Organizations evolving (2nd ed.). London, England: Sage.

Allen, F., & Gale, D. (2000). Comparing financial systems. Cambridge, MA: MIT Press.

Alvarez, S. A., & Busenitz, L. W. (2001). The entrepreneurship of resource-based theory. Journal of management, 27(6), 755-775.

Anderson, W. (2011). Internationalization opportunities and challenges for small and medium-sized enterprises from developing countries. Journal of African Business, 12 (2), 198-217.

Aziz, Y. A., Khairil, W. A & Zalton, S. (2012). Challenges faced by micro, small, and medium lodgings in Malaysia, Malaysia. International Journal of Economics and Management, 6 (1), 167-190.

Baines, S., & Wheelock, J. (1998). Working for each other: gender, the household and micro-business survival and growth. International Small Business Journal, 17 (1), 16-35.

Baker, H. K., Veit, E. T., & Powell, G. E. (2001). Factors influencing dividend policy decisions of Nasdaq firms. The Financial Review, 36(3), 19-37.

Barrett, C, B. (2007).Development Economics: An Overview, In Christopher B. Barrett, (ed), Development Economics: Critical Concepts in Development Studies. (Volume 1).London: Routledge.

Basargekar, P. (2011). Using social capital for the development of micro entrepreneurship: 10th International Entrepreneurship Forum (pp.1-15). Tamkeen, Bahrain: University of Essex.

Bates, T. (1994). Social resources generated by group support networks may not be beneficial to Asian immigrant-owned small businesses. Social Forces, 72(3), 671-689.

Bosma, N.J., Hessels, V., Schutjens, M., Van Praag, & Verheul, I.(2012). Entrepreneurship and Role Models, Journal of Economic Psychology, 33(2), 410–424.

Bowling, A. (1997) Research Methods in Health. Buckingham: Open University Press.

Brüderl, J., & Preisendörfer, P. (1998). Network support and the success of newly founded business. Small business economics, 10(3), 213-225.

Bruton, G.D., Ahlstrom, D., & Obloj, K. (2008).Entrepreneurship in Emerging Economies: Where are we today and where the research should go in the future, Entrepreneurship Theory and Practice, 32(1), 1-14.

Bryman, A., & Cramer, D. (1997). Quantitative Data Analysis with SPSS for Windows. London: Routledge.

Bula, H., & Tiagha, E., (2012). Women entrepreneurs in Kenya’s small scale enterprises: a demographic perspective. European Journal of Business and Management, 4 (9), 101-110

Burns, N., & Grove, S. (2009) The Practice of Nursing Research: Appraisal, synthesis, and generation of evidence (6th ed). St. Louis: W. B. Saunders.

Casson, M., & Giusta, D. M. (2007). Entrepreneurship and social capital analyzing the impact of social networks on entrepreneurial activity from a rational action perspective. International Small Business Journal, 25(3), 220-244.

Clausen, T. H. (2006). Who identifies and exploits entrepreneurial opportunities. Oslo: TIK, University of Oslo.

Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 297-334.

Cooper, D. R., & Schindler, P. S. (2006). Business Research Methods (9th ed). USA: McGraw-Hill.

Cooper, C. R., & Schindler, P. S. (2008).Business research methods (10 ed.). Boston: McGraw-Hill.

Cooper, D., & Schindler, P. (2014). Business Research Methods. New York: McGraw Hill.

Creswell, J. W. (2009). Research design: Qualitative, quantitative and mixed methods approaches. Thousand Oaks, California: Sage Publications.

Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of business venturing, 18(3), 301-331.

Davidsson, P. (2006).Nascent Entrepreneurship: Empirical Studies and Developments, in: Foundations and Trends. Entrepreneurship, 2(1), 1-79.

De Jong, J. P. (2013). The Decision to Exploit Opportunities for Innovation: A Study of High-Tech Small-Business Owners. Entrepreneurship: Theory and Practice, 37(2), 281–301.

Detienne, D. R., & Chandler, G. N. (2007). The role of gender in opportunity identification. Entrepreneurship Theory and Practice, 31(3), 365-386.

Edwards, P., Edwards, S., & Benzel, R. (2007). Teming Up: The Small-Business Guide to Collaborating with Others to Boost Your Earnings and Expand Your Horizons. New York: G.P. Putnam’s Sons.

Ekpe, I., Mat, N., & Ekpe, M. I. (2015). Social networks and women micro-enterprise performance: a conceptual framework. Mediterranean Journal of Social Sciences, 6(4), 360.

Fischer, E., & Reuber, A. R. (2003). Support for rapid-growth firms: A comparison of the views of founders, government policymakers, and private sector resource providers. Journal of Small Business Management, 41(4), 346-365.

Gartner, W.B., Shaver, K. G., Carter, N. M. & Reynolds, P. (2004). Handbook of Entrepreneurial Dynamics: The Process of Business Creation. USA, Thousand Oaks, CA: Sage.

Gay, L.R., & Diehl, P.L. (1992). Research methods for business and management. New York: MacMillan publishing Company.

Gine, X. & Karlan, D. S. (2009) Group versus individual liability: Long term evidence from philippine microcredit lending groups. Yale Economics Department Working Paper No. 61; Yale University Economic Growth Center Discussion Paper No. 970. Retrieved from https://ssrn.com/abstract=1407614

Granovetter, M. (2005). The impact of social structure on economic outcomes. The Journal of economic perspectives, 19(1), 33-50.

Greene, P., Hart, M., Gatewood, E., Brush, C., & Carter, N. (2003). Women entrepreneurs: Moving front and center: An overview of research and theory. Coleman White Paper Series, 3 (1), 1-47.

Hanson, S., & Blake, M. (2009). Gender and entrepreneurial networks. Regional Studies, 43(1), 135-149.

Hisrich, R. D., Micheal P. P. & Shepherd, D. A. (2005). Entrepreneurship, Boston: McGraw-Hill.

Hite, J. M. (2005). Evolutionary processes and paths of relationally embedded network ties in emerging entrepreneurial firms. Entrepreneurship theory and practice, 29(1), 113-144.

Hussey, R., & Collis, J. (2003) Business research: A practical guide to undergraduate

and postgraduate students, (2nd ed.). NY, Basingstoke: Palgrave Macmillan.

Hyndman, R. J. & Booth, H. (2008), Stochastic population forecasts using functional

data models for mortality, fertility and migration. International Journal of Forecasting, 24(3), 323-342.

Jack S., Dodd SD., & Anderson, A.(2008) Change and the development of entrepreneurial networks over time: A processual perspective. Entrepreneurship and Regional Development, 20(2), 125-159.

Jenssen, I, J., & Greve, A. (2002). Does the degree of redundancy in social networks influence the success of business start-ups. International Journal of Entrepreneurial Behavior & Research, 8(5), 254-267.

Jiang, C. X., Zimmerman, M. A., & Guo, G. C. (2012). Growth of women-owned

businesses: The effects of intangible resources and social competence. Journal of

Business Diversity, 12(1), 47-71.

Kariuki, J. W. (2015). Perceived role of business networking on the performance of women owned enterprises in Kenya: A case study of Kenya Association of Women Business Owners. Strategic Journal of Business and Change Management, 2(15), 268-290,

Katongole, C., Mulira, F., & Ahebwa, W. (2014). Comparative Assessment of Rural Youth Entrepreneurs in Uganda and Kenya. Global Journal of Management and Business Research, 14 (3), 9-22.

Kelley, D., Brush, C., Greene, P. & Litovsky, Y. (2010). 2010 Women's Report. Global entrepreneurship monitor. Wellesley, MA: Babson College. Retrieved from www.babson.edu/cwl.

Kim, P.H., Aldrich, H. E., & Keister, L. A. (2003, August 16). If I were rich: The impact of financial and human capital on becoming a nascent entrepreneur. Paper presented at the Annual Meeting of the American Sociological Association, Atlanta, Georgia, USA.

Kim, S. M. & Sherraden, M. (2014). The impact of gender and social networks on microenterprise business performance. Journal of Sociology & Social Welfare, 41(3), 49-69.

Koech, B. K., & Namusonge, G. (2015). Factors Influencing Performance of Women-Owned Micro and Small Enterprises in Nairobi County in Kenya. Strategic Journal of Business and Change Management, 2(2), 1799 – 1817.

Kombo, D., & Tromp, D. (2006). Proposal and Thesis Writing: An Introduction. Nairobi: Pauline’s Publication Africa

Kombo, D.K., & Tromp, D. (2009).Proposal and Thesis writing: An Introduction. Nairobi: Pauline Publications.

Kothari, C. (2004). Research Methodology. New Delhi: New Age international.

Kothari, C., & Garg, G. (2014). Research methodology: Methods and techniques. (3rd ed.). New Delhi: New Age International (P) Ltd.

Kotler, P. (2010). Marketing Management, Analysis, Planning, Implementation and Control. USA: Prentice-Hall.

Kristiansen, S., Kimeme, J., & Mbwambo, A. (2005). Information flows and adaptation in Tanzania cottage industries. Entrepreneurship and Regional Development, 17(5), 365-388.

Kruger, D. J. (2003). Integrating Quantitative and Qualitative Methods in Community Research, The Community Psychologist, 36(2),18-19.

Kumar, R. (2011). Research methodology, (3rd ed), London: Sage publications.

Latour, B. (2005). Reassembling the social: An introduction to actor-network-theory. New York, NY: Oxford University Press.

Lavrakas, P, J. (2008). Encyclopedia of Survey Research Methods. Thousand Oaks, Calif: SAGE Publications.

Littunen, H. (2000). Networks and local environmental characteristics in the survival of new firms. Small Business Economics, 15(1), 59-71.

Littunen, H., & Niittykangas, H. (2010). The rapid growth of young firms during various stages of entrepreneurship. Journal of Small Business and Enterprise Development, 17(1), 8-31.

Madey, G., Freeh, V., & Tynan, R. (2002). The open source software development phenomenon: An analysis based on social network theory. In: Proceedings of Americas Conference on Information Systems (AMCIS2002), Dallas, Texas, USA.

Marlow, S., Henry, C., & Carter, S. (2009). Introduction: Female entrepreneurship, special edition. International Small Business Journal, 27(3), 3-10.

Minniti, M., & Naudé, W.A. (2010). What do we know about the patterns and determinants of female entrepreneurship across countries. European Journal of Development Research, 22(2), 1-17.

Misango, S.B., & Ongiti, O.K. (2013).Do women entrepreneurs play a role in reducing poverty: A case in Kenya, International Review of Management and Business Research, 2 (1), 87-103.

Mugenda, O., & Mugenda, A. (2003). Research Methods: Quantitative and qualitative Approaches, Nairobi: Acts Press.

Mugenda, A.G. (2008).Social science Research: Theory and Principles. Nairobi: ACTS Press

Mugenda, O., & Mugenda, A. (2013). Research methods: Quantitative and qualitative approaches. Nairobi: ACTS Press.

Musolesi, M., & Mascolo, C. (2007). Designing mobility models based on social network theory. Mobile Computing and Communications Review, 11(3), 59-70.

Mustapha, M., & Subramanian, P. (2016). Challenges and Success Factors of Female Entrepreneurs: Evidence from a Developing Country. International Review of Management and Marketing, 6 (S4), 224-231.

Muthoni, C. S. (2013). Influence of capacity building on financial performance and growth of women owned small and medium enterprises in Gikomba market; Nairobi County, Kenya (Doctoral dissertation, University of Nairobi, Kenya). Retrieved from http://erepository.uonbi.ac.ke

National SME Development Council, Malaysia (2012).SME Annual Report 2011/12.Retrieved from http://www.smecorp.gov.my/images/Publication/Annual-report/BI/Annual-report-2011.pdf

Nkatha, D. (2016). Factors Influencing the Performance of Female Owned Enterprises: a Case of Businesses in the Central Business District of Nairobi, Kenya (Doctoral dissertation, University of Nairobi, Kenya). Retrieved from http://erepository.uonbi.ac.ke

Nowiński, W., & Rialp, A. (2016). The Impact of Social Networks on Perceptions of International Opportunities. Journal of Small Business Management, 54(2), 445-461

Odero-Wanga, D.A., Mulu-Mutuku, M.W., & Ali-Olubandwa, A. (2013). Overcoming the odds: Strategies used by women entrepreneurs in milk microenterprises in Kenya. American Journal of Human Ecology, 2(2), 60–66.

Oke, D. F. (2013). The effect of social network on women entrepreneurs in Nigeria: A case study of Ado-Ekiti Small scale Enterprise. International Journal of Education and Research, 1(11), 1-14.

Omwenga, J. Q., Mukulu, E., & Kanali, C. (2013). Towards improving the performance of women entrepreneurs in small and medium enterprises in Nairobi County, Kenya: Policy recommendations. International Journal of Business and Social Science, 4(9), 312-316.

Organization for Economic Co-operation and Development, (2000). Small and medium-sized enterprises: Local strength, global reach. Retrieved from http://www.oecd.org/cfe/leed/1918307.pdf

Orodho, A., & Kombo, K. (2002). Research Methods. Nairobi: Kenyatta University, Institute of Open Learning.

Orodho, A. J. (2003). Essentials of Educational and Social Science Research Methods. Nairobi: Masola Publishers.

Pages, E.R. (2005). The Changing Demography of Entrepreneurship. Local Economy ,20(1), 93-97.

Paul, K.C., Hamzah A., Samah B.A., Ismil I.A., D’Silva L.J. (2013). Development of rural herbal entrepreneurship in Malaysia. International Journal of Business Management, 8(18), 95-100.

Pek-Hooi, Soh., Zhang, J., & Wong, P.K. (2010). Entrepreneurial resource acquisition through indirect ties: Compensatory effects of prior knowledge. Journal of Management, 36 (2), 511-536.

Pinho, C. J., & Martins, L. (2010). Exporting barriers: insights from Portuguese small-and medium- sized exporters and non-exporters. Journal of International Entrepreneurship, 8(3), 254-272.

Polit D.F., & Beck C.T. (2010). Essentials of Nursing Research: Appraising Evidence for Nursing Practice. Philadelphia: Wolters Kluwer/Lippincott Williams & Wilkins.

Reynolds, P. D. (2011). Sociology and entrepreneurship: Concepts and contributions. Entrepreneurship theory and practice, 16(2), 47-70.

Roomi, M. A. (2009). Impact of social capital development and use in the growth process of women-owned firms. Journal of enterprising culture, 17(04), 473-495.

Rutashobya, L. K. (2000, September 28-29). SMEs development and the networks governance structure in developing countries, a research agenda. Paper presented at the 4th International Conference on Entrepreneurship and Small Business Development, Dar es Salaam, Tanzania.

Rutashobya, L., & Jaensson, J. (2004). Small firms' internationalization for development in Tanzania: Exploring the network phenomenon. International Journal of Social Economics, 31 (1/2), 159-172.

Rutashobya, L., Mukasa, D., & Jaensson, J. (2005). Networks, relationships and performance of small and medium enterprises in the shipping sub-sector in Tanzania. Paper presented at the IMP Conference at Rotterdam, Netherlands.

Rutashobya, L. K., Alan, I. S., & Nilsson, K. (2009). Gender, social networks and entrepreneurial outcomes in Tanzania. Journal of African Business, 10(1), 67-83.

Sappleton, N. (2009). Women non-traditional entrepreneurs and social networks. International Journal of Gender and Entrepreneurship, 1 (3), 198-218.

Saunders, M., Lewis, P., & Thornhill, A. (2003) Research method for business students, (3rd ed.). New York: Prentice Hall.

Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students (5th ed.). Edinburgh Gate: Pearson Education Limited.

Schoonjans, B., Cauwenberge, P., & Bauwhede, H. (2011). Formal Business Networking and SME Growth. Small Business Economics, 41 (1), 169-181.

Seibert, S. E., Kraimer, M. L., & Liden, R. C. (2001). A social networks theory of career success. The Academy of Management Journal, 44 (2), 219-237.

Sekaran, U. (2006). Research methods for business: A skill building approach. New York: John Wiley & Sons.

Selamat, N. H., Abdul-Razak, R. R., Gapor, S. A. & Sanusi, Z. A. (2011). Survival through entrepreneurship: Determinants of successful micro-enterprises in Balik Pulau, Penang Island, Malaysia. British Journal of Arts and Social Sciences, 3 (1), 23-37.

Shane, S. A., & Eckhardt, J. (2003). The individual-opportunity nexus. In Z. J. Ács & D.

B.Audretsch (Eds.), Handbook of entrepreneurship research (pp. 161–194). Dordrecht, NL: Kluwer Academic.

Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226.

Sharma, A., Sapnadua, M. S., & Hatwal, V. (2012). Microenterprise development and rural women entrepreneurship: Way for economic empowerment. A Journal of Economics and Management, 1 (6), 114-127.

Tata, J., & Prasad, S. (2008). Social networks, collaborative exchange and microenterprise performance: The role of gender. International Journal of Entrepreneurship and Small Business, 5 (3), 373-385.

Tundui, C., &Tundui, H. (2013). An empirical analysis of social capital and enterprise performance in Tanzania: The case of women owned businesses. International Journal of Developing Societies, 2(1), 50-60.

Wachira, K., Ngugi, P., & Otieno, R. (2017). Incubatee Selection Criteria and its Role on Entrepreneurship Growth: A Survey of University Based Business Incubators in Kenya. International Journal of Academic Research in Business and Social Sciences, 7(1), 28-38.

Wagner, J. (2007). Nascent entrepreneurs, In S. Parker (ed.), The Life Cycle of Entrepreneurial Ventures (pp. 15 -37). USA: Springer.

Watson, J. (2007). Modeling the relationship between networking and firm performance. Journal of Business Venturing, 22(6), 852-874.

Woolcock, M. (2001). Microenterprise and social capital:A framework for theory, research, and policy. The Journal of Socio-Economics, 30(2), 193-198.

Xavier, S., Kelley, D., Kew, J., Herrington, M., & Vorderwülbecke, A. (2013). Global Entrepreneurships Monitor ,2012 Global Report. Retrieved from https://www.gemconsortium.org/report/48545.

Yan, C. (2013). Alliances in networks: Insights from Block modeling. Kybernetes, 42(6), 955 - 961.

Zikmund, W.G., Babin, B.J., Carr, J.C., & Griffin, M. (2010). Business Research Methods, (8th ed). Australia: South-Western Cengage Learning.




DOI: http://dx.doi.org/10.61426/sjbcm.v5i3.818

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.