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This paper aims to examine the idea that an individual’s attitudes and beliefs toward change depend on the quality of the dyadic relationships formed through his/her ego network. Specifically, the focus of the research question is to test if an individual with high quality dyadic ties to others who have a favorable outlook on change will also have a favorable outlook on change.

The research sample consisted of 100 full-time hotel employees working in six city hotels located in Thessaloniki, Greece. To test the research question, three approaches were used including: a descriptive social network analysis (SNA), multiple regression and homophily testing based on Moran and Geary autocorrelations.

Even though the SNA provided some valuable findings on the way structures and tie quality connected the participants, the results from the regression analysis and homophily testing indicated a lack of a positive relationship linking dyadic ties and behavioral intention toward change suggesting that dyadic ties do not influence behavioral intentions in a way that can be considered favorable to change.

Managers need to be aware that employees’ network relationship quality at the dyadic level is insufficient to create a supportive environment toward change. Therefore, dyadic ties significant contribution through SNA is the identification of power centers, influential people, interdepartmental links and interdependencies necessary to disseminate the change message and build sustainable momentum.

The limited number of prior empirical studies have thus far approached relationship quality as a concept composed of either emotional, psychological or technical features. This study differs by adopting the dimensions of tangibles, empathy, responsiveness, reliability and assurance existing in the TERRA model and by determining whether the dyadic tie quality positively impacts individual behavior toward change through the employment of a tripartite examination to strengthen the validation of similarities or differences in the results.

Having the right intent, aspiration, ability and attitude to become an entrepreneur has become the mantra in the extant literature to be driver of entrepreneurship and small and medium enterprise (SME) growth. Why would zealous and ambitious individuals with all rightful attributes so required of entrepreneurs have to fizzle out few years after venturing into business or SMEs? Perhaps these same individuals may relocate to other jurisdictions and would establish successful firms even beyond their imaginations. Beyond the individual’s entrepreneurial attributes, there are other external countervailing forces which either “enable” or “impede” entrepreneurial drive and SME growth processes. Adopting the theory of planned behavior, this study conceptualizes a systems framework to analyze how SMEs either flourish or fail in developing countries.

The study relies on secondary sources of data. It adopts a critical stage review of secondary data.

The study argues that the interplay of “internal factors” and “external factors” of prospective entrepreneurs provides a useful framework to explain the general SME outlook of an economy. The study postulates that many internally driven prospective SME entrants (with entrepreneurial attitudes, abilities and aspirations) mostly in the developing economies may have their dreams shattered because of obstructive external ecological elements which tend to frustrate new business entrants as well as existing ones.

With the aid of a framework, this study conceptualizes a comprehensive framework to analyze how SMEs either flourish or fail in developing countries.