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Dynamic capabilities and enterprise growth: the mediating effect of networking

Michael Omeke (Kyambogo University, Kampala, Uganda)
Pascal Ngoboka (Centre of Economic Research, College of Business and Economics, University of Wisconsin-River Falls, River Falls, Wisconsin, USA)
Isaac Nabeta Nkote (Makerere University Business School, Kampala, Uganda)
Isaac Kayongo (Makerere University Business School, Kampala, Uganda)

World Journal of Entrepreneurship, Management and Sustainable Development

ISSN: 2042-5961

Article publication date: 25 January 2021

346

Abstract

Purpose

Enterprise growth drives competitiveness, innovations, employment creation, income generation and social inclusion in societies. The purpose of this paper is to examine the mediating effect of networking on the relationship between dynamic capabilities and enterprise growth of financial cooperatives.

Design/methodology/approach

This is a cross-sectional survey and quantitative study of 269 financial cooperatives based on structural equation modelling and bootstrapping techniques analysis.

Findings

The results reveal that dynamic capabilities are vital in promoting the growth of financial cooperatives. In addition, networking partially enhances the contribution of dynamic capabilities to the growth of financial cooperatives. Therefore, dynamic capabilities and networking play a key role in promoting the growth of financial cooperative enterprises.

Research limitations/implications

This was a cross-sectional survey. It did not trace the changes in behavioural and attitudinal aspects of enterprise growth over time. A longitudinal approach is recommended.

Practical implications

It is imperative that managers of financial cooperatives enhance their coordination, learning and competitive response capabilities through consultation, exchange and sharing of information among staff and other stakeholders, to increase the membership, capital and income volumes, depicting growth of financial cooperatives.

Originality/value

This study provides an insight on the mediating effect of networking on the enterprise growth of financial cooperatives in developing countries founded on networks theoretical framework. Unlike previous studies that modelled direct relationship of enterprise growth.

Keywords

Acknowledgements

Special thanks to Kyambogo university that sponsored Dr. Omeke's Phd study from which this paper is extracted. Second, the authors immensely thank the academic supervisors for technical guidance during the PhD journey.Funding: The research was part of the Phd study sponsored by Kyambogo University Kampala Uganda.Competing interests statement: The authors declared no conflict of interest in the research work.

Citation

Omeke, M., Ngoboka, P., Nkote, I.N. and Kayongo, I. (2021), "Dynamic capabilities and enterprise growth: the mediating effect of networking", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 17 No. 1, pp. 1-15. https://doi.org/10.1108/WJEMSD-05-2019-0031

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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