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Vol. 13(1), pp. 11-22, 14 January, 2019
DOI: 10.5897/AJBM2018.8693
Article Number: E300BC059711
ISSN: 1993-8233
Copyright© 2019
Author(s) retain the copyright of this article
http://www.academicjournals.org/AJBM
African Journal of Business Management
Full Length Research Paper
Critique does not equate to rebellion: Positive deviance
and entrepreneurial networking among small and
medium enterprises in Uganda
Samuel Mayanja1*, Joseph M. Ntayi2, J. C. Munene3, Balunywa Wasswa4 and Moses
M. Kibirango5
1School of Working Adults, Cavendish University, Uganda.
2Business School, Faculty of Economics, Energy and Management Science, Makerere University, Kampala, Uganda.
3Business School, Faculty of Graduate Studies and Research, Makerere University, Kampala, Uganda.
4Faculty of Graduate Studies and Research, Business School, Makerere University Kampala, Uganda.
5Faculty of Business and Management, University of Eastern Africa, Baraton, Eldoret Kenya.
Received 21 October, 2018; Accepted 26 November, 2018
This paper examines the relationship between positive deviance and entrepreneurial networking among
small and medium enterprises (SMEs). Using a mixed method approach combined self-administered
questionnaires and interview guide covering 228 SMEs in Uganda, the cross-sectional nature of this
study revealed key nuances about SMEs. The research findings confirmed a significant positive
relationship between positive deviance and entrepreneurial networking among SMEs in Uganda. The
findings also revealed that: SME owner/ managers should create enabling environment for people with
divergent views to interact with each other to innovate new practices, such as accessing resources
from the networks; managers should initiate new policies for error management to allow employees
room to learn from mistakes; managers should acquire new skills of leadership skills to manage and
utilize the knowledge and skills of positive deviants. This research therefore contributes to existing
scholarship by providing nuances in the study of positive deviance and entrepreneurial networking
among SMEs in Uganda through employing a complexity approach that transcends previous academic
focus on social network theory.
Key words: positive deviance, entrepreneurial networking, small and medium enterprises (SMEs), complexity.
INTRODUCTION
Successful entrepreneurs recognise the importance of
entrepreneurial networking in the process of starting and
sustaining businesses (Engel et al., 2017; Koning and
Stanford, 2015). Although entrepreneurial networking
provides useful information, social support and tangible
resources to support achieve goals like business growth
and competitiveness, it has been critised for focusing
mainly on the static aspects of networks, content,
relations, their governance and structures (Pollack et al.,
2015; Galkina, 2013). This focus limits the understanding
*Corresponding author. E-mail: smayanja@cavendish.ac.ug.
Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution
License 4.0 International License
12 Afr. J. Bus. Manage.
of entrepreneurial networking because they are seen as
an objectively given reality that comes into being and
changes without the participation of entrepreneurs (Lux et
al., 2016; Sarasvathy and Venkataraman, 2011). Positive
deviance is intentional behaviours that significantly depart
from the norms of the referent group (organization) in
honourable ways that lead to positive outcomes (Mertens
et al., 2016). Previous studies focused on destructive
deviant behaviours in organisations (Tziner et al., 2006),
while others studying individuals who have solved a
problem and spreads their unique solutions their existing
solutions to bring about sustainable behavioural and
social change in health (Pascale et al., 2010: 206).
Despite growing interest, little remains known about the
factors that stimulate positive deviance (PD); in particular,
how management can enable its emergence. Social
networks are an important way of working with
complexity. Social networks enable the rapid transmission
of information and practices provided there is trust within
the network. One of the principles in social network
science is that when people with divergent views (PD)
are better connected, they are more individually and
collectively productive, cohesive, and resilient. This study
looks at positive deviance relationship with a social
networking lens. It was hypothesize that positive
deviance relates to entrepreneurial networking. The
Central Broadcasting Corporation (CBS) story
demonstrates how positive deviant employees were able
to access resources from a social network.
The CBS in Uganda is a success story in which the
networking strategies expounded in this paper were
applied by entrepreneurs to create a highly successful
enterprise. Using the Corporate Social Responsibility
budget, CBS radio established and supported listenership
groups to promote activities that generated income.
However, when the radio station was switched off by the
government in 2009 over allegations of inciting violence,
its closure affected CBS‟ cash flow since it could no
longer air advertisements. The CBS management called
back six flexible employees with uncommon practices to
develop strategies of mobilizing resources from the radio
networks to keep the groups active. The employees
started contacting some of the organisations that used to
advertise with CBS radio. CBS management and
employees persuaded Stromme Foundation to start
providing financial support to organised groups to learn
financial literacy, income generating projects, primary
health care and technical education for children of group
members. CBS radio and the Stromme Foundation joined
forces and began imparting income generating skills to
group members, supporting adolescents to acquire
technical skills and supporting group initiatives to
mobilise savings. The groups were linked to markets
through online marketing. The resources mobilized from
the Stromme Foundation stimulated some individuals
among the CBS groups and began making candles and
soap, writing books, practicing agriculture and animal
husbandry, and many other potentially profitable activities
different from their daily routine. The groups were
connected to potential markets through linkage marketing
that gave birth to an association called Empower Women
through Savings and Loan Associations-(POWESA).
Stromme Foundation after realising that the model was
working, connected CBS to other development partners
like FK-Norway, MYRAND-India to support CBS groups
with resources to start a SACCO. By 2016, POWESA
members had share capital of $1,033,333 and savings of
$3,055,556. Despite being closed by the government for
two and a half years, CBS was able to provide financial
and non-financial resources like social support to
community initiatives to grow their businesses. CBS was
voted the best radio station, winning awards from 2010-
2016, for its programmes that promoted development.
CBS radio used entrepreneurial networking to mobilise
financial and non-financial resources to support its
listener groups and greatly improve their sense of
purpose and well-being.
LITERATURE REVIEW
Complexity systems leadership theory (CSLT)
CSLT explains the relationship between positive deviance
and entrepreneurial networking in the Complex
environment (Lindhult and Hazy, 2016; Goldstein et al.,
2010; Hazy, 2012; McMillan, 2008). Hazy (2012) posits
that higher levels of innovation could only be achieved
through employees that deviate from the norms.
Goldstein et al. (2010) argue that when employees with
divergent views interact with others they create a
symbiotic behaviour among themselves. These further
contend that unfolding-series of events alertness tend to
stimulate cohesiveness, ties, interactions and networking
style among SME owners/managers. Positive deviant
business owners/managers with unusual behaviour are
likely to identify and exploit opportunities by joining
different social networks to access resources for
business competitiveness (Haynie et al., 2009; Shane,
2003). CSLT as an individual theory can predict mixed
multiple possible outcomes with divergent views.
Positive deviance
Positive deviance is intentional behaviours that
significantly depart from the norms of the referent group
(organization) in honourable ways that lead to positive
outcomes (Mertens et al., 2016). Positive deviants
normally perceive the world differently, break the norms
and mobilize resources to pursue their new ideas that
make the organisation compete unlike the conservative
organisations. There is tolerance towards individuals who
tend to do something different or unplanned, even when it
causes doubts with others (Goldstein et al., 2010).
Positive deviance has become an important issue in
organizations and is gaining increasing research attention
(Herington and van de Fliert, 2018). Employees who
seem to have deviant behaviours normally violate
organizational norms to increase the organisation
functionality and to serve as a source of creativity and
innovation, thus contributing to the organization's
competitive advantage as well as to the societal
wellbeing (Artz,, Hatfield and Cardinal, 2010). In
developing economies, SMEs face a challenge of
managing employees with deviant behaviours since they
have a greater tendency to resign, develop stress related
problems and low morale (Kim and Choi, 2017). They
sometimes experience low self-esteem, an increase in
fear and lack of confidence at work, as well as physical
and psychological pain (Christian and Ellis, 2014). This
normally happens among SMEs where innovations and
resource allocation are highly controlled by top
management. Positive deviant behaviours can have both
positive and negative repercussions.
Entrepreneurial networking
Entrepreneurial networking is understood as the active
process of establishing and maintaining relationships
which underlines the dynamic side of their formation
undertaken by the focal actor (Johannisson, 2017;
Galkina, 2013). Entrepreneurial networking is a highly
context specific phenomenon where the setting imposes
certain socio-cultural patterns of establishing entre-
preneurial relations (Burt et al., 2013; Borgatti Mehra and
Labianca, 2009). In entrepreneurial networking,
relationships provide emotional support for
entrepreneurial risk taking and this is fruitful for some
situations (Cooper, 2017). The relationships may be
derived from membership of trade associations, business
networks or indeed friendships with business people,
which help the entrepreneur in providing the access to
information (Lockett et al., 2017). The argument is that
entrepreneurial networking connections and structure
facilitate the flow of information and create the mutual
trust and cooperation (Johannisson, 2017).
Positive deviance and entrepreneurial networking
Positive-deviance are antecedents of entrepreneurial
networking since positive deviant employees come up
with new ideas and mobilise resources through networks
(Pascale et al., 2011; Goldstein et al., 2010). They assert
that developing a high degree of resonance interaction or
symbiosis and not competition requires that individuals
with different backgrounds and with different sets of
experiences connect with others in a very meaningful
way to access required resources (Hazy and Silberstang,
Mayanja et al. 13
2009). In most cases, the presence of PD among
organisations‟ employees is fostered and demonstrated
when individuals are able to voice their opposing
viewpoints in a meaningful manner (Johannisson, 2017;
Goldstein et al., 2010: 39). This is sometimes lacking in
some SMEs with individuals who happen to possess
opposing viewpoints (Kibirango et al., 2017; Goldstein et
al., 2010).
Positive deviance focuses on practice rather than
knowledge (Hulsheger et al., 2009). Although most
problems have complex, interlinked underlying causes,
the presence of positive deviants demonstrates that it is
possible to find successful solutions since positive
deviants are able to access resources from networks to
implement their new ideas that may have radical
departures from what is expected to be normal (Pascale
et al., 2010). Past studies indicate that people, who have
a high level of networking ability, have also some extra
positive abilities such as being good at problem solving,
deal making, conflict managing and negotiating (Frieder
and Basik, 2017). Additionally, Horiuchi (2017) asserts
that networking ability is also related to the capacity of
individuals to understand, analyse, and evaluate the
actors in political environment. Positive deviants in a
business are likely to influence the kind of network to
participate in to access the tangible and intangible
resources (Yildiz et al., 2015; Vadera et al., 2013).
Positive deviants and entrepreneurial networking
In every community and every organization, some people
do better than others with the same tools and constraints.
Pascale et al. (2011) called these “positive deviants.”
Such individuals establish community behavioural norms
related to the problem to be addressed or enable
community to discover successful uncommon
behaviours/strategies practiced by the positive deviants
(Kibirango et al., 2017; Pascale et al., 2011). Literature
on complexity systems leadership theory clarified that
only those behaviours/strategies accessible to all are
kept. There is a proverb which says that:
“We cannot (yet) clone people but we can adopt their
successful behaviours/strategies”
This means that positive deviance focuses on practice
rather than knowledge (Hulsheger et al., 2009). Although
most problems have complex, interlinked underlying
causes, the presence of positive deviants demonstrates
that it is possible to find individuals in an organization
who innovate new ideas to challenge a status quo, look
for resources through social networking. Van Dick and
Scheffel (2015) assert that positive deviants are a source
of innovation, in that they can resolve, by their own
means, a problem that their community is yet to solve.
They, however, agreed that the challenge is making an
14 Afr. J. Bus. Manage.
anomaly a collective resource. Employees must therefore,
place attention on individual success more so than global
dysfunction. Organizations that took up such
recommendation shifted the responsibilities: the
identification and diffusion of new ideas occurred in the
field, breaking away from the traditional top-down model
and access resources from social networks (Bowman,
2013). Employees with divergent views are also more
inclined to explore experiment and innovate, which leads
to better results. This can happen when the SME has an
error management culture that allows trial and error
without reprimanding the employees (Frese and Keith,
2015).
H1a: Positive deviants are positively and significantly
associated with entrepreneurial networking.
Novelty experiments and entrepreneurial networking
Employees with divergent views prefer to make
experiments by testing new ways of doing things to solve
the prevailing business problems (Muafi, 2015). The
abilities available in the leadership of social systems help
employees to amplify novel experiments of positive
deviants, and whether such are intended to solve existing
problems and/or opportunity-exploitation potential, which
were previously unnoticed (Seidman and McCauley,
2008). Through influential interactions, which are
happening all the time in every corner of the organization,
novelty emerges and is enacted in unique and surprising
ways. This means that the true catalysts of innovation are
the webs of relationships in the nexus of interactions that
connect members to each other and to others in the
environment to address the current challenges in
organisations by also getting tangible and intangible
resources from the social networks (Hazy and Ashley,
2011). .
The employee differences create novelty since the
interaction of two identical things cannot generate
something new. Pushing this analogy further, the catalyst
for innovation lies in deviations from what is expected,
that is, experiments in novelty reflecting departures from
the currently accepted and conventional ways of
functioning (Goldstein et al., 2010). These experiments
are constantly going on in organizations, although such
deviations are typically unnoticed or marginalized.
Whenever new ideas are amplified, and disseminated by
business owner/manager, new ways of solving problems
emerge in novel patterns, practices, and strategies that
can improve and transform the business emerge
(Lindhult and Hazy, 2016). At workplace, in which
experiments in novelty lead to innovative practices,
processes, and routines, is likely to enable an
organization to become adaptable to the unprecedented
levels of change characterizing today‟s business
environments. The social networks create a platform
where individuals with different objectives meet to access
social support for novelty experiments that contribute
organisation competitiveness (Frese and Keith, 2015).
H1b: Novelty experiments are significantly positively
associated with entrepreneurial networking
METHODOLOGY
The research methodology employed involved quantitative and
qualitative approaches in the context of critical realism mixing since
a qualitative approach can address the issues that arise from using
a quantitative method. Critical realism attempts to understand and
respond to reality as perceived in real domains (Benton and Craib,
2001).
Population and sample
To answer the hypotheses, we conducted a comprehensive large-
scale survey among Ugandan SMEs. For practical reasons, the
geographical scope of the study was restricted to SMEs in Kampala
district. The target population comprised of 93,117 registered SMEs
with more than five employees based on trade, services and
manufacturing sectors (UBOS, 2013), under this study, the SMEs
are the unit of analysis while managers and business owners are
the unit of inquiry. A total sample of 392 SMEs for this study was
generated using Krejcie and Morgan (2006) sample size
determination formula. In total, 456 questionnaires were received
from respondents of 228 SMEs indicating a response rate of 58%.
Measurement of variables, validity and reliability
Positive deviance
Positive-deviance (PD) was examined by assessing the level of
existing tolerance towards individuals who tend to do something
different or unplanned, even when it causes doubts with others
(Goldstein et al., 2010). The study also examined the behavior of
certain individuals whose uncommon practices enable them to find
better solutions to problems than their neighbors who have access
to the same resources (Pascale et al., 2011). Confirmatory factor
analysis (CFA) finally retained novelty experiments and positive
deviant behaviors (Seidman and McCauley, 2008). The model had
a good fit as shown in Figure 1, Chi-square =22.840; Degree of
Freedom (DF) =24, Probability (P) = 0.529; Goodness of Fit Index
(GFI) =0.977, Tucker Lewis Index (TLI) =1.002; Normed Fit Index
(NFI) =0.975; Root Mean Square Error of Approximation (RMSEA)
= 000. The Likert scale was 1-6. The validity was 0.750 and
reliability was 0.920.
Entrepreneurial networking
The presence of strong and weak ties and a broad network appears
to influence the persistence and success of entrepreneurs
(Davidsson and Honig, 2003). The CFA retained interactions, ties,
inter dependence and networking styles. It measured the
relationships between contacts of the responding entrepreneur,
resources like information, money, materials, social support and
space. The CFA had a good model fit as shown in Figure 2: Chi-
square =33.958; Degree of Freedom (DF) =29, Probability (P) =
0.241; Goodness of Fit Index (GFI) = 0.971, Tucker Lewis Index
(TLI) =0.984; Comparative Fit Index (CFI) =0.990; Normed Fit Index
(NFI) =0.937; Root Mean Square Error of Approximation (RMSEA)
= 0.027.
Mayanja et al. 15
Figure 1. Positive deviance.
Figure 2. Entrepreneurial networking.
The Cronbach Alpha (α) which assessed discriminant validity was
above 0.5 (Fornell and Larcker, 1981). The observed factor
loadings compared with their standard errors revealed evidence of
an association between positive deviance and its respective
constructs value was above 0.5, considered an acceptable
reliability for each item (Mohajan, 2018). All variables for the study
were tested for validity 0.850 and reliability 0.919, which were
acceptable as they met the minimum value of 0.7 recommended by
Nunnally (1978). Tables 1, 2 and 3 show the validity and reliability.
Data management and analysis
Four approaches of statistical analysis as used by Mustapha et al.
(2011) were utilised in this study as follows: first, IBM SPSS
statistics version 23 was used to compute the descriptive statistics
(Field, 2005). Descriptive measurements were used to report
demographic data and to check the level of all predictor, mediator
and criterion variables. Frequency measures including percentage,
mean and standard deviation, zero order correlations, reliability
coefficients and plots were used in this process.
The analysis of moment structures (AMOS) Program version 23,
a graphic and statistical analysis tool, was used for confirmatory
factor analysis (CFA) and structural equation modelling (SEM) or
path analysis, to examine the goodness of fit of the proposed
model, and subsequently to estimate the structural coefficients
pertaining to the hypothesised path model. The study used SEM to
verify the hypothesised relationships between entrepreneurial
networking variables, namely, positive deviance, ecologies of
innovation and entrepreneurial networking among SMEs. This
technique allowed the estimation of causal relations among
variables as well as mediating effects of direct and indirect effects
of mediator variables in the relationships between predictor
variables and the criterion variable.
The test for common method bias was considered under this
study. The problem of common method bias was solved by
obtaining responses from different SMEs. Procedural remedy and
careful construction of the items used in the measurement
instrument was carried out. All ambiguous, unfamiliar terms, and
vague concepts were removed, and all questions were kept simple,
specific, and concise. Similarly, all double barrelled questions were
eliminated by decomposing them in to simpler and focussed
questions (Tourangeau et al., 2000). Thus, all items for the final
study were re-worded and the scale anchors used in the pilot study
was maintained to avoid change in the meaning of the construct
and potential compromise on validity. Scale formats, anchors, and
scale values were maintained in order to avoid common method
biases. Raw data collected from the field were screened for errors,
missing values, outliers, and further test to assess assumption of
parametric data was performed. The histogram, normal p-p plots,
homogeneity of variance, and multi-collinearity were used to
ascertain whether the data satisfied the assumption of parametric
16 Afr. J. Bus. Manage.
Table 1. Qualitative demographic characteristics.
Interview
Position
Experience
(years)
Age
range
Level of
education
Size of business
Nature of business
TT1
Manager
15
50-59
Degree
Medium
Broadcasting
TT2
Manager
17
50-59
Degree
Medium
Hospitality
TT2
Product
12
40-49
Degree
Medium
Cosmetics
Development
Manager
TT3
Manager
7
40-49
Postgraduate
Medium
Clay products
TT4
Owner
12
50-59
Postgraduate
Small
Consultancy
TT5
Manager
8
30-39
Postgraduate
Small
Manufacturing
TT6
Owner
20
60-69
Postgraduate
Small
Consultancy
TT7
Manager
9
40-49
Postgraduate
Medium
Manufacturing
TT8
Owner
10
30-39
Diploma
Small
Trade
TT9
Owner
6
30-39
Degree
Small
Trade
Table 2. Relationships between the study variables.
Variable
Mean
SD
1
2
3
4
Novelty Experiments-1
3.928
0.751
1.000
Positive Deviants-2
3.912
0.692
0.639**
1.000
Positive Deviance-3
3.920
0.653
0.913**
0.897**
1.000
Entrepreneurial Networking-4
4.161
0.490
0.535**
0.523**
0.584**
1.000
**Correlation is significant at the 0.01 level (2-tailed).
test. Normality was tested by use of histogram and normal p-p
plots, while the Levene‟s test was generated to test for
homogeneity of variance. Furthermore, tolerance and variance
inflation factor (VIF) statistics were generated to determine whether
multi-collinearity was a problem in the data. However, the tolerance
and VIF were achieved and tenable and were not a problem in the
data as recommended by Field (2005) and Hair et al. (2010).
Additionally, tests to examine the mediating role of ecologies of
innovation in the relationship between positive deviance and
entrepreneurial networking were carried out using guidelines set by
Baron and Kenny (1986). The results of the mediating role of
ecologies of innovation in the relationship between positive
deviance and entrepreneurial networking are discussed
subsequently.
Qualitative data reliability, validity and analysis
The study tested for the reliability and validity of the qualitative data
based on Miles and Huberman (1994) quality of qualitative research
criteria of conformability, credibility, transferability and
dependability. The key informants were interviewed for 30 to 40 min
to ensure all the necessary data was gathered from them. The
interview notes and voices were reviewed to check for correctness
and logical inference of the findings. Furthermore, the transcribed
scripts were reviewed to check for the correctness and
completeness of the data. The study also followed a specific
procedure in coding and analysis of qualitative responses. The
researchers were able to provide full explanation and account of all
the ideas, records of observations and responses presented on
each occasion of the interview process through self-participation in
the interview process. The qualitative data was analyzed using
content analysis based on thematic areas created guided by the
study constructs and dimensions.
The reliability and validity of the qualitative data were also
ensured. The key informants were interviewed for 30 to 40 min to
ensure all the necessary data was gathered from them. The
interview notes and voices were reviewed to check for correctness
of data. The transcribed scripts were further reviewed to check for
the correctness and completeness of the data. The information was
properly coded and categorized into the study thematic areas
arrived at based on the study constructs and dimension.
Furthermore, based on Miles and Huberman (1994), criteria for
quality in qualitative research of conformability, credibility,
transferability and dependability were ensured. Therefore, to ensure
that conclusions were most reasonable from the qualitative data,
confirmatory audit was conducted during data collection and
analysis stages. It involved checking the retained recorded
interviews and field notes to ensure logical inferences and quality of
findings. Besides, credibility under qualitative research corresponds
to internal validity and to ensure that qualitative inquiry was
performed in a credible manner. This was achieved by the
researcher personally involving himself to collect the qualitative
data. In addition, the aspect of transferability was also considered.
Transferability was achieved through use of specific procedures in
coding and analysis of qualitative responses as stipulated by Miles
Mayanja et al. 17
Table 3. Direct regression.
Parameter
Unstandardized
coefficients
Standardized
coefficients
t
Sig.
B
Std. Error
Beta
(Constant)
2.444
0.161
-
15.192
0.000
Positive Deviance
0.438
0.040
0.584
1.820
0.000
Dependent variable: Entrepreneurial networking
R
0.584
-
-
-
-
R Square
0.341
-
-
-
-
Adjusted R Square
0.338
-
-
-
-
Std. Error of the Estimate
0.399
-
-
-
-
F Statistics
117.074
-
-
-
-
Sig.
0.000
-
-
-
-
and Huberman (1994). Furthermore, dependability was achieved by
conducting a dependability audit, which involved an on-site and
independent examination of the interview process. The researcher
was able to provide full explanation and account of all the ideas,
records of observations and responses presented on each occasion
of the interview process through self-participation in the interview
process. This further confirmed the credibility of the results of
qualitative data collection before its analysis, presentation and
interpretation (Patton, 2002). Thus, the hypotheses discussed are:
H1: There is a positive significant relationship between positive
deviance and entrepreneurial networking.
H1a: Positive deviants are positively and significantly associated
with entrepreneurial networking
HIb: Novelty experiments are significantly positively associated with
entrepreneurial networking.
RESULTS AND DISCUSSION
Under this study, both correlation and regression analyses
were used to test for linear relationships between the
variables.
Descriptive statistics
The results show the characteristics of SMEs, business
owners/managers. The nature of businesses was: trade
102 (44%), services 85 (37.3%), while manufacturing was
41 (18%). Among the businesses that the study focused
on had exited more than 9 years counted 36%, while
those which had existed 7 to 9 years were 35.5%, other
businesses that had existed 4 to 6 years were 14.5% and
1 to 3 years were 10.5%. Most of business
owners/managers who responded to the questionnaires
were male (62.4%). The results reveal that the majority of
owners or managers in the total sample were aged
between 30 and 39 years (55.7%), followed by 18 and 29
years (26.7%), while 40 and 49 years were 15.4%, the
category of 50 to 59 years were 1.7% and above 60
years were 4%, respectively. The number of years
individuals had worked with the organisation 3 to 6 years
(44.8%), this was followed with 1 to 3 years (34.8%), less
than one year were 9.8%, while 6 to 10 years were 7.2%,
10 to 15 years were 1.7% and above 15 years were
1.7%, respectively. The highest level of education among
the business owners and managers was degree at
83.3%, while 13.8 and 2.9% had post graduate
qualifications. Among the sample respondents, 91.3%
were managers while 8.7% were business owners. This
means that most of the businesses have existed more
than one year and respondents had adequate knowledge
and experience to respond to the questions correctly.
Qualitative demographic characteristics
The nine key informants selected for the interview were
proportionately distributed comprising of five managers
and four owners. The proportional distribution of the
interviewees provided an opportunity to get a
representative view of entrepreneurial networking among
SMEs. The age of the key informants ranged between 30
and 69 years. The managers scoring the highest age
bracket between 44 and 50 years and owners falling in
the age bracket 40 and 59 years. The age factor is
paramount in explaining the maturing of the interviewees
in establishing business and social relationships
contributing to successful access to resources.
Pearson zero order correlation
Table 2 shows that the mean scores of the study
variables range between 3.9 and 4.1, while standard
deviations range from 0.49 to 0.79. This, for a six -point
Likert scale, indicates that the concepts in the study were
being practiced to a reasonable level. Moreover the
standard deviations are small which implies that the study
18 Afr. J. Bus. Manage.
Table 4. Competing models.
Parameter
Model-1
Model-2
Model-3
(Constant)
4.003
2.772**
2.426**
Nature
0.047
0.009
0.009
Novelty Experiments
-
0.346**
0.218**
Positive Deviants
-
-
0.217**
Dependent Variable: Entrepreneurial Networking
R
0.124
0.535
0.585
R Square
0.015
0.286
0.342
Adjusted R Square
0.011
0.280
0.333
Std. Error of the Estimate
0.487
0.416
0.400
R Square Change
0.015
0.271
0.056
F Statistic
3.547
85.378
18.891
Sig.
0.061
0.000
0.000
sample is an accurate reflection of the population
(Saunders, 2006). The correlation coefficients were found
to be significantly associated with each other at 0.01
level. The results reveal a positive association between
positive deviance and entrepreneurial networking (r =
0.584, P <0.001). The relationship between Positive
deviants and entrepreneurial networking (r = 0.523, P <
0.001). There is also a significant positive correlation
between novelty experiments and entrepreneurial
networking (r = 535, P < 0.001). In essence, the study
results indicated a positive change in each of the
components of positive deviance is highly associated with
a positive change in entrepreneurial networking among
SMEs in Uganda.
Regression results
The regression analysis was performed to test the
association between the study variables.
H1 examined the relationship between positive
deviance and entrepreneurial networking. The results
show that there is a significant and positive relationship
between positive deviance and entrepreneurial
networking (β = 0.584, p < 0.05), and thus the hypothesis
was supported. This suggests that positive changes in
positive deviance are associated with positive changes in
the entrepreneurial networking among SMEs in Uganda.
Hypothesis 1(a): positive deviants are positively related
with entrepreneurial networking. The results show that
there is a significant and positive relationship between
positive deviants and entrepreneurial networking (β =
0.217, p < 0.05), and thus the hypothesis was supported.
This suggests that positive changes in positive deviants
are associated with positive changes in entrepreneurial
networking among SMES in Uganda.
Hypothesis 1(b): Novelty experiments are positively
related with entrepreneurial networking among SMEs.
The results show that there is a significant and positive
relationship between novelty experiments and
entrepreneurial networking (β = 0.218, p < 0.05), and
thus the hypothesis was supported. This suggests that
positive changes in novelty experiments are associated
with positive changes in entrepreneurial networking
among SMEs in Uganda.
Hair et al. (2010) stipulates that if you do not achieve
acceptable fit for the measurement model, model fit will
not improve when the structural relationships are
specified. Only when the measurement model is
validated and achieves acceptable model fit can we turn
our attention to a test of the structural relationships.
Besides, they further states that two key differences arise
in testing the fit of a structural model relative to a
measurement model. First, even though acceptable
overall model fit must be established, alternative or
competing models are encouraged to support a model‟s
superiority. Second, particular emphasis is placed on the
estimated parameters for the structural relationships,
because they provide direct empirical evidence relating to
the hypothesized relationships depicted in the structural
model. In Table 4, the competing model, the Adjusted R
square in model 1 was 0.011, when variable two was
introduced it increased to 0.280 and model three is 0.333
3. It shows that model 3 has a better fit.
H1: The results of the hypothesis show that positive
deviance is associated with entrepreneurial networking.
Positive deviants prefer novelty experiments that
influence their decision to access resources from social
networks to directly implement their perceived ideas
because of their networking style. Some positive deviant
employees realize that there is no internal enabling
environment for them to access resources within, with
employee support due to low interactions and use their
ties and interactions in the network to access resources
to support divergent views that may not be very popular
to the whole organisation (Kibirango et al., 2017;
Goldstein et al., 2010).
This is also consistent with qualitative findings:
„This company produces body cosmetics and hair
products. We have employees who come up with new
ideas on product development, distribution channels and
packaging. We allow our employees to compete in idea
generation and every idea that is screened and
approved, it is named after the employee and we give
them a commission. It has helped us to be creative and
open to new ideas. Interviewee‟ 1.
The positive deviant employees can only succeed to
access resources from the social networks directly when
they have support of business owner/management and
when they are empowered to make decisions with high
interaction and feedback of top management (Vadera et
al., 2013; Lavine, 2011).
HIa: Positive deviants are associated with
entrepreneurial networking. It is evident from the study
that major innovations and novelty ventures rely on
individual employee‟ radical departures from the norm.
The study shows that positive deviants‟ act prompt critical
reflection on the actions taken which is an opportunity for
critical thinking and hence an evaluation of the identified
and prevailing opportunities. Employees evaluate the
viability of opportunities and mobilize resources from the
networks through their interactions and networking styles.
Further, this enhances interactions and double or
multiplicative interactions among employees. From such
meaning emerge as a foundation for opportunity
exploitation and new venture creations. It is therefore vital
to identify and nurture positive deviants (Lindhult and
Hazy, 2014).
„Some of our employees think outside the box by
generating new ways of doing things like new product
development, distribution channels. The new ideas, new
processes are referred to assurance committee to screen
them so that we fund the best idea with high returns.
Sometimes we find ourselves with two or three divergent
good ideas and the resources are not adequate. We
share the money, materials or airtime in case of radio
stations and we test all of them so that we do not miss
the opportunities. It has been helpful‟. Interviewee 2.
Internal working environment is based on the conditions,
entities, events, and factors within an organization that
influence its activities and choices, particularly the
behaviour of the employees. Basically, such conducive
internal working environment can be provided through a
degree of freedom, and the tolerance of trials and error
type of governance. The environment motivates
employees to share their conceived ideas with others
outside endorsed relevant and adequate governing
policies, structures, and/or new embryonic approaches/
method. They sufficiently coordinate and facilitate the
Mayanja et al. 19
inter-dependent emerging (evolving) patterns; employee‟s
creativity, and innovativeness that enhance the access of
resources from social networks (Kibirango et al., 2017;
Goldstein et al., 2010).
Nurturing positive deviants require an enabled,
adequate and favourable internal working environment
with a certain degree of freedom and exercised tolerance
of trials and error. In this case, organization managers
ought to provide a flexible platform for enhanced rational
thinking and learning. Positive deviance is used to
develop interventions and implementation process based
on the successful behaviours and strategies of individuals
at risk. Despite their circumstances, they perform better
than their peers did (Kelly et al., 2016; Goldstein et al.,
2010).
The SME manager may choose to either reward the
behaviour or take a non-action by refraining from
punishing the deviation. On the other hand, if the action is
judged to be harmful or ineffective like wrong product or
processes, the organization may refrain from punishing
the action and encourages, where possible, the
employees to re-group and take a new approach or learn
from the failure to help guide the next attempt (Kim and
Choi, 2017; Hazy, 2013). .
H1b: Individuals with uncommon sets of experiences
and information, connect in a very meaningful way to
have novelty experiments. Business Managers sometimes
fail to manage deviant staff from the norms/policies,
which affects the process of creating environment for
innovation. The staff with divergent views try new ways of
doing things through experiments tend to question the
status quo and sometimes are pushed out of the
organisation. Sometimes SMEs do not have structures to
support staff with divergent views to test their innovative
ideas (Muafi, 2015). Positive deviants face the challenge
of having adequate internal working environmental and
organization capabilities enhancement (degree of
freedom, tolerance of trails and error). The qualitative
findings support the quantitative data.
„„We allow our chef to come up with new menu on every
Friday. Once the product is liked by our clients, we adopt
it to be part of the main menu. We allow our chef to
experiment new ideas that is why our menu is good‟‟.
Interviewee 3.
Without dynamic and supportive management, positive
deviants may not create conducive environment for
interactions and accessing resources from entrepreneurial
networks (Lindhult and Hazy, 2016). It is a non-linear
system where linear approximation breaks down in the
face of instability. It requires freedom among staff to fine-
grain choice and actions of individuals who are influenced
by common assumptions and beliefs. Novelty experiments
can work if the SME has structures in place to support
non-linear interactions (Chakraborty and Siriwardane,
2013; Goldstein et al., 2010). The experiments move
20 Afr. J. Bus. Manage.
parts of the system away from normal routines to new
learning. The experiments in novelty reflect departures
from the currently accepted and conventional ways of
functioning.
These experiments can constantly go on in
organizations, although such deviations are typically
unnoticed or marginalized. Management can use the tool
of positive deviance as social intervention that helps
social systems identify and amplify novel experiments
that have previously gone unnoticed, but whose problem-
solving and opportunity exploitation potential can be
unleashed. The key to dynamic management lies in
creating conducive environment in the workplace, in
which experiments in novelty lead to innovative practices,
processes, and routines, enabling an organization to
become adaptable to the unprecedented levels of change
characterizing today‟s business environments and access
resources from networks in unusual way (Carlile and
Lakhani, 2011).
Conclusions
Understanding the power of positive deviance and
entrepreneurial networking provides value and guidance
to SME managers on the process and mechanism of
stimulating and nurturing entrepreneurial networking
among SMEs in Uganda and beyond. The findings
indicate the importance of the positive deviance by
tolerating divergent views of individuals who tend to do
something different or unplanned, even when it causes
doubts with others. The new ideas and order
transformation can be a conduit through which positive
deviants can entrepreneurially network to access
resources for business competitiveness.
Experimentation readiness, nurturing positive deviants
requires an enabled, adequate and favourable internal
working environment with a certain degree of freedom
and exercised tolerance of trial and error. In this case,
SME manager ought to provide a flexible platform for
enhanced rational thinking and learning. Positive
deviance may be used to develop interventions and
implementation process based on the successful
behaviours and strategies of individuals at risk, despite
their circumstances to perform better than their peers did
(Goldstein et al., 2010). The implementation of divergent
views with support of management provides the
necessary support and removes barriers to the
implementation of the proposed actions. This engagement
is essential to promote opportunities for practicing
positive deviance actions without causing losses to the
SMEs (Walls and Hoffman, 2013).
Creating an error management culture ensures that
business learns more, on the individual, team and
organisation level. The errors made by positive deviants
offer unique opportunities to learn. When information is
communication takes place about errors, joint
understanding and insight arise which benefit the
detection, speed and quality of the error correction.
Employees are also more inclined to explore, experiment
and innovate, which leads to better results (Moore et al.,
2014). The following recommendations are suggested to
enhance entrepreneurial networking:
(1) The SME managers should endeavour to create a
conducive working environment for positive deviant
employees to interact and develop ties with other network
actors to access tangible and intangible resources,
especially in developing countries.
(2) Business owners/managers should create
environment for error and trail. Employees should be
given freedom to make experiments guided by policies. In
case an error is made by positive deviant employee,
management should focus on the process of learning
from the mistakes and how to improve on the new
generated ideas without punishing the employee since it
kills initiatives. The organisation systems should
accommodate information sharing and error management.
(3) SMEs must actively cultivate an environment which
encourages employees to learn from each other rather
than condemning differences in perception and deviation.
If successful, these changes should reduce the anxiety
and fear that typically accompany high-conformity minded
work environments.
(4) In situations where management encourage
employees to make decisions and take actions, the
manuals and procedures should be used as guidelines to
aid in the decision-making process rather than having
strict rules that must be dogmatically obeyed and
unquestioned.
The study limitations and areas for further study are:
The study was limited to trade, manufacturing and
services sector SMEs registered and operating in
Kampala, Uganda and it is possible that the results are
only applicable to trade, services and manufacturing
sectors. More so, the present study is cross-sectional; it
is possible that the views held by individuals may change
over the years. Although the constructs have been
defined as precisely as possible by drawing upon
relevant literature and theory, the measurements used
may not perfectly represent all the dimensions. For
example positive deviance (used here as a behavioural
concept) is very much in its infancy. Similarly, we have
employed entrepreneurial networking as proxy for
entrepreneur‟s access to resources.
Additionally, future research could use the same basic
hypotheses, but implement the study in terms of a
longitudinal rather than a cross-sectional design and, also
test the model in other economies. In spite of the
limitations, policy makers in Uganda and perhaps in other
developing nations dealing with SMEs, academicians,
business owners, managers and even general readers
interested in the field of positive deviance and
entrepreneurial networking development might find this
study useful.
CONFLICT OF INTERESTS
The authors have not declared any conflict of interests.
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