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Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation

Lydia Nyankom Takyi (School of Management, Information Technology and Governance, University of KwaZulu Natal, Pietermaritzburg, South Africa and Department of Management Studies Education, Akenten Appiah-Menka University of Skills Training and Entrepreneurial Development, Tanoso-Kumasi, Ghana)
Vannie Naidoo (School of Management, Information Technology and Governance, University of KwaZulu Natal, Pietermaritzburg, South Africa)
Courage Simon Kofi Dogbe (Department of Management Studies Education, Akenten Appiah-Menka University of Skills Training and Entrepreneurial Development, Kumasi, Ghana)
Edward Akoto (School of Business, Henderson State University, Arkadelphia, Arkansas, USA)

Review of International Business and Strategy

ISSN: 2059-6014

Article publication date: 14 October 2022

Issue publication date: 24 March 2023

235

Abstract

Purpose

This study aims to assess the potential mediating effects of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation.

Design/methodology/approach

This study was a cross-sectional design, where the structured questionnaire was used in gathering data from 301 indigenous Ghanaian firms. The path estimation was conducted by running structural equation modelling in AMOS v.23.

Findings

It was concluded that government support had a significant positive effect on Ghanaian indigenous firms’ degree of internationalisation. Formal network was found to partially mediate the relationship between government support and indigenous firms’ degree of internationalisation. Finally, it was concluded that informal networks had no mediating effect.

Research limitations/implications

One limitation is that the effect of the government support and network strategy was only explored on indigenous exporters, meaning that exporters which did not fall within the definition of indigenous firms were excluded from the study. Future studies could conduct a comparative study on the same variables, using indigenous and non-indigenous firms.

Practical implications

It is recommended that Ghanaian exporters should participate in government training and workshop programmes focussing on building export business strategies and networking to improve export activities.

Originality/value

This study’s unique contribution is its investigation of how networking portfolio, including formal and informal ties, helps explain the nexus between government support and the internationalisation of local firms in the developing market, such as Ghanaians.

Keywords

Acknowledgements

The authors express gratitude to the GEPA for releasing their export directorate to the authors. Also, the authors are thankful to the individual exporters who responded to the authors’ questionnaire.

Credit authorship contribution statement: The first author was responsible for framing and developing the paper; the second author engaged in the general outlining and strengthening of the paper; the third author engaged in data analysis, and the last author also engaged in the strengthening of the paper.

Citation

Takyi, L.N., Naidoo, V., Dogbe, C.S.K. and Akoto, E. (2023), "Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation", Review of International Business and Strategy, Vol. 33 No. 3, pp. 517-532. https://doi.org/10.1108/RIBS-01-2022-0001

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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