Trust, SME internationalisation and Networks A study of three main Nigerian cultural blocs
Abstract
Since the pre-colonial era and across Nigeria’s key spatial cultural groups, indigenous entrepreneurs have developed unique strategies in their exporting activities. Interestingly, the stark reality of Nigeria’s challenging business environment has pushed these entrepreneurs to alternative ways of exporting activities. Thus, they have been able to enhance the structure of exporting trade by fostering stronger regional ties based on family/kinship, culture and religion. Of particular interest is the mechanism of trust, which refers to a set of shared expectations that enable entrepreneurs deal with the uncertainties in their exporting activities. The consensus that trust promotes network relations becomes pertinent in the light of Nigeria’s unique socio-economic landscape, where formal institutional arrangements such as courts and regulations appear to be underdeveloped. Thus, through a rich empirical study of Nigerian SMEs, this thesis highlights the complex phenomena of trust shaping relationships across Nigeria’s three main ethnic blocs.
At a theoretical level, the study draws on two main perspectives: embeddedness and institutional logics as they form the core of the issue at the center. The thesis also draws on complimentary perspectives from entrepreneurship and internationalisation as they presuppose an understanding of entrepreneurial behaviour located within social and institutional contexts. At the empirical level, a qualitative approach guided the investigation of 42 exporting SMEs across the three main Nigerian blocs. Through semi-structured interviews, the findings reveal that entrepreneurs were found to rely on personal trust relationships to address the limitations of weak and deficient state backed institutions. They also mostly relied on indigenous institutions, such as ties to family, chieftaincy and religion, combined with trade associations, in facilitating internationalisation activities. The findings from this study also reveal particular issues of trust building, trustworthiness, distrust and trust repair; especially as it relates to SMEs across Nigeria’s three main cultural blocs. This advantage provided a true picture which reflected the commonalities and differences of trust across the three main cultural blocs and provided a basis for uncovering new aspects of trust research.
In sum, this study makes a case by contributing to the theoretical understanding of trust, SME internationalisation and networks relationships. This is in response to the growing concern that entrepreneurial behaviour has to be understood from the context in which it occurs. With this in mind, the paucity of research in this context advances the need to examine trust relationships in uncharted territories such as Nigeria. Slanted more positively, this study therefore has practical and policy implications for enhancing our understanding of trust as it is embedded in culturally specific social relations.
... The most trite yet crucial question in the field of entrepreneurship concerns the extent to which African entrepreneurship is distinct compared with mature economies. Traditional insights about the structure and design of African entrepreneurship are gained by recognising that collaborative relationships underpinned by trust and specific norms enhance competitiveness (Amoako, 2019;Omeihe, 2019). Trustto use the definition of Lewis and Weigert -can be conceived simply as a property of collective units (ongoing dyads, groups, and collectivities). ...
... In the interim, however, much of the studies on networks emphasise important categories of benefits; which include access to market information (Nee and Ingram, 1998;Amoako and Lyon, 2014). And more importantly, vital linkages which generate access in an expeditious manner over actors who lack comparable connections (Burt, 2000;Omeihe, 2019). At the forefront of our fresh point of departure, an attention to trade networks provides a contextual portrait to the social life of Nigerian traders. ...
... Helpful in this perspective, is the broad idea that trust invokes an image of connectedness with norms of morality and personalised relationships embedded within social networks (Lyon, 2000;Omeihe, 2019). The reality is that trust emerges from relationships between two people-bilateral, or multilateral-where trust is developed with people from the same community or group. ...
This paper suggests that the key to entrepreneurial success lies in the ability to maintain trust-based networks and respect social norms. In elaborating this proposition, this article draws on the results of an exploratory study of 30 Nigerian traders to demonstrate how using an ‘institutional’ lens provides new insights into the influence of trust and indigenous norms on entrepreneurial behaviour. The concept of morality which presupposes an understanding of entrepreneurial behaviour, is introduced to offer a supple and adaptable explanation for how actors rely on social norms to build trade networks. At the centre, trust was found to be indispensable to networks relationships and necessary for enforcing sanctions. The results facilitate a rich understanding of how a range of trust-based networks relationships and hybrid indigenous norms underpin entrepreneurial behaviour in Nigeria. The study contributes by providing well founded insights into entrepreneurship within an African context.
... The most trite yet crucial question in the field of entrepreneurship concerns the extent to which African entrepreneurship is distinct when compared with mature economies. Traditional insights about the structure and design of African entrepreneurship are gained by recognising that collaborative relationships underpinned by trust and specific norms enhance competitiveness (Amoako, 2019;Omeihe, 2019). Trust -to use the definition of Lewis and Weigert -can be conceived simply as a property of collective units (ongoing dyads, groups, and collectivities). ...
... In the interim, however, much of the studies on networks emphasise important categories of benefits; which include access to market information (Amoako & Lyon, 2014;Nee & Ingram, 1998). And more importantly, vital linkages that generate access in an expeditious manner over actors who lack comparable connections (Burt, 2000;Omeihe, 2019). At the forefront of our fresh point of departure, an attention to trade networks provides a contextual portrait to the social life of Nigerian traders. ...
... Helpful in this perspective is the broad idea that trust invokes an image of connectedness with norms of morality and personalised relationships embedded within social networks (Lyon, 2000;Omeihe, 2019). The reality is that trust emerges from relationships between two people -bilateral or multilateral where trust is developed with people from the same community or group. ...
This chapter suggests that the key to entrepreneurial success lies in the ability to maintain trust-based networks and respect social norms. In elaborating this proposition, this study draws on the results of an exploratory study of 30 Nigerian traders to demonstrate how using an 'institutional' lens provides new insights into the influence of trust and indigenous norms on entrepreneurial behaviour. The concept of morality which presupposes an understanding of entrepreneurial behaviour, is introduced to offer a supple and adaptable explanation for how actors rely on social norms to build trade networks. At the centre, trust was found to be indispensable to networks relationships and necessary for enforcing sanctions. The results facilitate a rich understanding of how a range of trust-based networks relationships and hybrid indigenous norms underpin entrepreneurial behaviour in Nigeria. The study contributes by providing well founded insights into the entrepreneurship within an African context.
... Not surprisingly, a lack of adequate knowledge about the mechanics of Nigerian SME internationalisation seem to be one of the main explanations why its contributions to economic growth are often unacknowledged. This paper makes the point that more legitimate regional trade appears to be taking place across West African borders than we know, and a major impediment to the contributions of Nigerian SMEs has to do with the lack of a conducive environment (Fadahunsi and Rosa, 2002;Omeihe, 2019). ...
... Simply put, norms are specific instructions on how to act. The idea of norms invokes an image of what actions are deemed desirable or undesirable, as they form the basis for developing and sustaining personalised trust (Lyon, 2000;Omeihe, 2019). The preference for a reliance on norms constrains opportunism in a one-off transaction, where previous interactions are non-existent, and no expectation for possible future transactions. ...
... On this basis, qualitative methodological tools for exploring the process of norms and trust-based network relationships were deemed appropriate. We adopted an interpretivist approach in response to calls for more qualitative studies networks and SME internationalisation (Omeihe, 2019). The reliance on in-depth semi-structured interviews formed the nucleus of our data collection methodology as it allowed for a discovery of the unclear boundaries between the phenomenon of SME internationalisation and the Nigerian context. ...
... To a considerable extent, the nature and scope of institutions on entrepreneurship reflects varied contextual settings. Nowhere is this more evident than in literature on African markets (Abor and Quartey, 2010;Amoako, Akwei and Damoah, 2018;Omeihe, 2019). Among scholars who take seriously the social nature of entrepreneurs (for example, Lyon, 2005), the analysis of institutions across Africa has been characterised by conditions of incomplete markets and imperfect information. ...
... In particular, this emphatically suggests that actions are not driven by logic of consequences, but rather by logics of appropriateness (Jackall, 1988;March and Olsen, 1989;Thornton and Ocasio, 2008). As entrepreneurs are directly shaped by cultural norms and network structures, which in turn shape their social interactions (Omeihe, 2019;Amoako, 2019). ...
... The reality of rules implies norms of behaviour and social conventions which members of a community share. The adverse impact of institutions on economic exchange is more pronounced in developing market contexts where formal enforcement and sanctioning mechanisms remain generally weak (Amoako and Lyon, 2014;Omeihe, 2019). ...
This paper examines the institutional logics shaping entrepreneurial behaviour. It investigates how institutional contexts affect entrepreneurial behaviour especially in challenging environments. By drawing on a rich empirical study of small and medium-sized enterprises (SMEs), the paper uncovers how indigenous institutional forms such as trade associations have evolved to replace dysfunctional formal institutions. The institutional logics perspective was useful in understanding the effects of culture on trade associations. Our interview data reveal how entrepreneurs take advantage of institutional-based trust to enforce trade agreements in the absence of formal institutional trust. The paper contributes to the field of entrepreneurship concerning SMEs and trade associations, by examining issues in relation to economic-institutional contexts that have been largely neglected.
... In the interim, however, much of the studies on networks emphasise important categories of benefits; which include access to market information (Nee and Ingram, 1998;Amoako and Lyon, 2014). And more importantly, vital linkages which generate access in an expeditious manner over actors who lack comparable connections (Burt, 2000;Omeihe, 2019). At the forefront of our fresh point of departure, an attention to trade networks provides a contextual portrait to the social life of Nigerian traders. ...
... Helpful in this perspective, is the broad idea that trust invokes an image of connectedness with norms of morality and personalised relationships embedded within social networks (Lyon, 2000;Omeihe, 2019). The reality is that trust emerges from relationships between two people-bilateral, or multilateral-where trust is developed with people from the same community or group. ...
... With trust, social norms are sustained through a balance of acting reciprocally and the threat of sanctions by the other party (Lyon, 2000;Omeihe, 2019). On one hand, reciprocity signals that both parties to a relationship expect a benevolent disposition which would not undermine the relationship (Rousseau et al., 1998;Welter, 2012). ...
This paper suggests that the key to entrepreneurial success lies in the ability to maintain trust-based networks and respect social norms. In elaborating this proposition, this article draws on the results of an exploratory study of 30 Nigerian traders to demonstrate how using an ‘institutional’ lens provides new insights into the influence of trust and indigenous norms on entrepreneurial behaviour. The concept of morality which presupposes an understanding of entrepreneurial behaviour is introduced to offer a supple and adaptable explanation for how actors rely on social norms to build trade networks. At the centre, trust was found to be indispensable to networks relationships and necessary for enforcing sanctions. The results facilitate a rich understanding of how a range of trust-based networks relationships and hybrid indigenous norms underpin entrepreneurial behaviour in Nigeria. The study contributes by providing well-founded insights into entrepreneurship within an African context.
... That approach has resulted in biased assumptions and macro-theorisations of the activities of SMEs operating in developing economies especially in sub-Saharan Africa. It has also been complemented by a long-standing imbalance within the extant literature on entrepreneurship which seems to prioritise studying large multinational enterprises (MNEs) over SMEs, despite the fact that SMEs account for a huge share of the business within Africa (Amoako and Lyon, 2014;Omeihe, 2019). ...
... This view assumes that social relationships are determined by the norms of those social structures which provide sanctions when trust is broken. The possibility of sanctions reduces the risk of trust betrayal, as available sanctions include reputation damage, membership termination and shaming (Luhmann, 1979;Lyon, 2000;Omeihe, 2019). Overall, the danger of these sanctions creates an obligation for trustworthiness. ...
... In the absence of established government institutions, traders involved in export business in the African context have resorted to informal institutions including export trade associations and indigenous institutions (Amaoko, 2015; Amoako et al., 2020;Smith and Luttrel, 1994) for support. Within these rarely studied establishments, trade agreements and contracts are mainly legislated on the basis of personal trust (Omeihe, 2019). Considering that export trade associations and indigenous institutions are based on unregulated relationships ranging from kinship, families ties, religion and affiliation (Thornton et al., 2011), it is arguable that trust will take centre stage as an important factor in the way export traders interact amongst themselves, with customers and their suppliers within such institutions (see Amaoko, 2019). ...
Purpose: The purpose of this article is to develop new insights into the interplay between trust, indigenous institutions and weak/dysfunctional formal institutions using the Nigerian context - a developing country in Western Africa. It advances new understanding on how Nigerian entrepreneurs trust in their indigenous institutions such as family ties, kinship, chieftaincy, religion, cooperatives and trade associations to resolve disputes arising from their exporting activities as opposed to dormant formal institutions in their country.
Design: This exploratory study adopts an interpretive research paradigm and it utilises a case study strategy. Data collected through observations, archival records and qualitative conversations with 36 exporting Nigerian SMEs is analysed by utilising a combination of within and cross-case analysis techniques. Doing so enabled an in-depth study of the methods their owner managers use in order to take advantage of the relationships they established through their long-standing cultural institutions in the place of weak formal institutions in their country.
Findings: Indigenous institutions have evolved to replace formalised institutions within the business environment in Nigeria. They have developed to become an alternative and trusted arbiter for solving SMEs' export issues because of weak/dysfunctional formal institutions in the Western African country. The owner managers of exporting SMEs perceive formal institutions as representing a fragmented system that does not benefit their export businesses.
Practical Implications: The findings demonstrate that there is need for policy makers to consider the role of informal institutions in the Nigerian context. Such an approach is essential given the economic importance and increasing number of SMEs that trade and export their goods through informal structures in Nigeria.
Originality: The study indicates that it is not just the void or absence of institutions that exist in a developing country such as Nigeria, but weak/dysfunctional formal institutions have been replaced by culturally embedded informal institutions. Thus, the study provide a new theoretical avenue depicting the concept of trusting in indigenous institutions.
... To a considerable extent, the nature and scope of institutions on entrepreneurship reflects varied contextual settings. Nowhere is this more evident than in literature on African markets (Abor and Quartey, 2010;Amoako, Akwei and Damoah, 2018;Omeihe, 2019). Among scholars who take seriously the social nature of entrepreneurs (for example, Lyon, 2005), the analysis of institutions across Africa has been characterised by conditions of incomplete markets and imperfect information. ...
... In particular, this emphatically suggests that actions are not driven by logic of consequences, but rather by logics of appropriateness (Jackall, 1988;March and Olsen, 1989;Thornton and Ocasio, 2008). As entrepreneurs are directly shaped by cultural norms and network structures, which in turn shape their social interactions (Omeihe, 2019;Amoako, 2019). ...
... The adverse impact of institutions on economic exchange is more pronounced in developing market contexts where formal enforcement and sanctioning mechanisms remain generally weak (Amoako and Lyon, 2014;Omeihe, 2019). Previous studies point out that institutional settings in more advanced economies, differ markedly from those of developing economies (Bruton and Ahlstrom, 2003;Bruton Ahlstrom and Li, 2010). ...
This article examines the institutional logics of entrepreneurial behaviour. It investigates how institutional contexts affect entrepreneurial behaviour, especially in challenging environments.
By drawing on a rich qualitative study of 14 small and medium-sized enterprises (SMEs) in Nigeria, the paper uncovers how indigenous institutional forms such as trade associations have evolved to
replace dysfunctional formal institutions. The institutional logics perspective was useful in understanding the effects of culture on trade associations. Our interview data reveal how entrepreneurs take advantage of institutional-based trust to enforce trade agreements in the absence of formal institutional trust. The major findings show that trade associations were necessary for enforcing trade agreements in conditions where actors cannot rely on formal institutional arrangements. The results facilitate a better understanding of how trade associations reduce the room for opportunism and serve to promote trust across members. This study contributes to the field of entrepreneurship concerning SMEs and trade associations, by examining issues in relation to economic-institutional contexts that have been largely neglected.
... Within the field of entrepreneurship, there have been attempts to study the functions of Nigerian small and medium sized enterprises (SMEs) in relation to the socio-economic context in which they operate (Lyon, 2000;Porter, Lyon, & Potts, 2007;Walther, 2014), and many of the findings reveal that economic exchange particularly among SMEs require subtly different levels of interaction based on trust and flexible forms of contracts both oral and written . This is because Nigerian SME entrepreneurs experience institutional disadvantages such as minimal recourse to legal redress and are often found to rely on trust in culturally specific arrangements to resolve export disputes (Amoako & Matlay, 2015;Omeihe, 2019). ...
... Common themes easily captured across scholarly definitions of trust are those of shared reciprocity, benevolence and cooperation (Coleman, 1990;Granovetter, 1985;Lyon, 2000;Porter & Lyon, 2006). To Omeihe (2019), the distinguishing feature of trust not only denotes an image of connectedness with personalised relationships embedded within social networks, but also a preference for associating with individuals with proven reputations -which undoubtedly is a necessity for any cooperative business relationship. The linkage between trust and SMEs is complex. ...
... Hence, entrepreneurial activities of exporting SME ownermanagers contribute to the revival of Nigeria's declining sectors as well as the development of transnational trade links (Omeihe et al., 2020;Porter et al., 2007). Therefore, Nigeria presents a fascinating case considering its minimal formal institutions (such as banking infrastructure and legal systems) which are inadequate to enforce contractual agreements Omeihe, 2019). Compared to advanced economies where previous relationships may not necessarily be important for economic exchange, SMEs within the Nigerian context have been found to resort to trust-based relationships in fostering their exporting strategies . ...
In this chapter, we examine trust and social networks among entrepreneurs operating in a developing market context. At the centre of this study, trust emerges from the interplay of a range of cultural-specific factors, each of which describes how social relations shape economic action. Using case studies of exporting Nigerian SMEs, we document how exporting arrangements are enforced across West African markets. Interview data reveal how entrepreneurs take advantage of indigenous trust-based relationships to enforce exporting agreements. It is clear that exporting activities is shaped by trust and networks of kinship, and market associations that permeate the West African region. This chapter facilitates a better understanding of trust and the range of indigenous relationships that underpin exporting activities in Nigeria and particularly across West Africa.
... The idea of trust invokes an image of connectedness with norms of morality and personalised sources embedded within social networks (Lyon, 2000;Omeihe, 2019). Trust emerges from relationships between two people -bilateral or multilateral, where trust is developed with people from the same community or group (Lyon, 2000). ...
... The essence of trust is simple. With trust, norms of cooperation are sustained through a balance of acting reciprocally and the threat of sanctions by the other party (Lyon, 2000;Omeihe, 2019). On one hand, reciprocity signals that both parties to a relationship expect a benevolent disposition which would not undermine the relationship (Rousseau et al., 1998;Welter, 2012). ...
... The ability to build rapport with the respondents during the field work captured their interpretations of trust, as they welcomed the opportunity to share their trust experiences and trade practices. The consideration for limiting bias was minimised through ensuring a considerable amount of observing market transactions, documentary analysis and informal discussions (Lyon and Porter, 2010;Omeihe, 2019). Table one below highlights the profiles of the respondents. ...
Through an empirical study of traders in Bokkos and Ero markets of Nigeria, this study examines the means by which trust is developed in the absence of efficient formal institutional arrangements (such as law courts and legal structures) taken for granted in advanced economies. The analysis from the multiple case studies of micro-trading groups examines moral norms through personalised and institutionalised based trust relationships. At its centre, trust is found to be indispensable to economic relationships and necessary for information sharing and sanction enforcements. The findings reached provide well founded insights into the perceived morality of indigenous institutional arrangements within Nigeria.
... The determinants and conditions of economic trade have long been contemplated. At the outset much of academic interests and policy directions maintained that economic success was dependent on investments in capital and infrastructure (Nuissl 2005;Omeihe 2019). A shift in this direction was founded on the recognition that SME linkages and alliances were pivotal to maintaining competitive advantage. ...
... This includes information on one's reputation based on previous interactions. It can therefore be argued that the embeddedness approach offers a much broader understanding of how entrepreneurs are influenced by their contexts through social structure, cognition and trust in their SME activities (Omeihe 2019). ...
... As Simmels (1990) notes that trust needs to be more concrete than a rational proof or personal observation for social interactions to thrive. Much of the definitions described above move beyond trust as a set of expectations to highlight the situational risks facing parties in a relationship, as future outcomes are dependent on the expected actions of one's partner (Misztal 1996;Lewicki and Bunker 1996;Omeihe 2019). Our premise toward a conceptualization of trust in this article leaves us with more reasons to highlight the role of trust in economic action. ...
There is a pronounced paucity of empirically rigorous study that focuses on the impact of trust on small and medium-sized enterprises (SMEs) operating in a developing market context. This article offers a fresh perspective on the simultaneous relationship between trust and distrust by exploring the complex process through which they are developed. Constructed in the assumptions of multidimensionality and the inherent tensions of relationships, the design of this study is interpretive, following an emergent iterative process, where three distinct types of trust, cognitive-based trust, affect-based trust and calculus-based trust were considered as critical components for successful SME relationships. Conversely, the unpredictable negative behavior of a trade partner was critical to the development of calculus-based distrust and identification-based distrust. The results facilitate a better understanding of the distinct types of trust and distrust that underpin SME relationships in Nigeria and other developing economies, particularly in Africa. This article contributes to the ongoing debate over the two contrary yet complementary oppo- sites of trust and distrust, and their ability to provide explanations to economic activity
... Instead, applied research has continued to glide over Africa's socio-economic context, thus leading to incorrect assumptions and macro-theorisations. Further along these lines, an imbalance exists which priorities large enterprises over SMEs, despite the fact that SMEs account for a huge share of the business within Africa (Amoako & Lyon, 2014, Omeihe, 2019. While prior studies have examined the value of network relationships in African trade (Jenssen & Kristansen, 2004;Overa, 2006;Porter & Lyon, 2006;Amoako, 2018), this paper attempts to seek a comprehensive coverage of indigenous institutions operating in parallel to weak and deficient formal institutions. ...
... This view assumes that social relationships are determined by the norms of those social structures which provide sanctions when trust is broken. The possibility of sanctions reduces the risk of trust betrayal, as available sanctions include reputation damage, membership termination and shaming (Luhmann, 1979;Lyon, 2000;Omeihe, 2019). ...
... Overall, we believe that our rapport with the respondents captured their interpretations of trust, as they welcomed the opportunity to share their experiences and practices. The consideration for limiting bias was minimised through ensuring a considerable amount of observing market transactions, documentary analysis and informal discussions (Lyon & Porter, 2010;Omeihe, 2019 (Ackroyd & Hughes, 1992). To a large degree, this allowed the emergence of rich and valid findings from the data. ...
... The following excerpts captures selected responses from the educators: Table four portrays more findings from the educators and learners' interpretations of learning outcomes. Our method for summarising the relationship between our qualitative evidence builds on Sutton and Callahan [37] cross-site analysis developed by Miles and Hubermann [33] for identifying similarities among data. The cross-site display in Table four was constructed to indicate evidence from their reflexive response. ...
... We recognise that using quantitative methods may not provide a rich understanding of the issues we seek to uncover. Unlike qualitative approaches that bring us closer to the research phenomenon, quantitative approaches are known to provide casual explanations and numerical measurements [36,37]. Thus, a qualitative study was considered applicable as it provided a rich understanding of transformative reflexivity in entrepreneurship education. ...
This chapter suggests that the key to quality entrepreneurship education lies in reflective action learning. In elaborating this perspective, this study draws on the reflective experiences of third-year entrepreneurship students and educators in providing interpretations of the learning and teaching process. The concept of transformative reflexivity, which presupposes an introspection of entrepreneurship teaching and learning methods located within social contexts is introduced. At the centre, we contend that entrepreneurship education demands an approach to developing student and educator competence, with a rich emphasis on reflexive practice. This we believe creates a unique climate for quality experiential experience. Our main results facilitate a rich understanding of the positive effects of enabling greater student ownership of the learning process. The theoretical import of the study is in part a plea to solidify and interprete in the face of scholarly differences, a unified stance that challenges and extends existing entrepreneurship knowledge within the limits of critical bounding assumptions.
... With regards to the method adopted for this study, we acknowledge that a quantitative approach would have not provided a rich understanding of this study phenomenon. This is because quantitative studies seek to provide casual explanations and numerical measurements (Bryman and Bell, 2015;Omeihe, 2019;Omeihe and Omeihe, 2019b). Thus, a qualitative study is unique to this study as it provides a richer understanding of transformative reflexivity in entrepreneurship education through the lens of the local actors. ...
Our study suggests that the key to quality entrepreneurship education lies in reflective action learning. In elaborating this perspective, this study contributes to the developing enterprise theme, by drawing on the reflective experiences of third-year entrepreneurship students and their educator in providing interpretations of their learning and teaching process. We introduce the concept of transformative reflexivity, which presupposes an introspection of entrepreneurship teaching and learning methods located within social contexts is introduced. At the centre, we contend that entrepreneurship education demands an approach to developing student and educator competence, with a rich emphasis on reflexive practice. This we believe creates a unique climate for quality experiential experience. Our main results facilitate a rich understanding of the positive effects of enabling greater student ownership of the learning process. The theoretical import of the study is in part a plea to solidify and interprete in the face of scholarly differences, a unified stance that challenges and extends existing entrepreneurship knowledge within the limits of critical bounding assumptions.
This study reveals how Nigerian entrepreneurs take advantage of institutional-based trust to enforce trade agreements in the absence of formal institutional trust. The results facilitate a better understanding of how a range of indigenous institutional forms reduce the room for opportunism and serve to promote trust across entrepreneurs. The study contributes to the field of entrepreneurship concerning small and medium-sized enterprises, by examining issues in relation to economic-institutional contexts that have been largely neglected.
What is the status of communication with a virtual entity? To answer this question, we must turn to the philosophy of language. Here, the philosopher of language Paul Grice with his “intentionalist semantics” is particularly important to show that virtual entities, for example in the form of chatbots, do not “intend” anything with their utterances. They have no mental states, so they can neither make decisions nor communicate. No matter how much bots suggest they are communicating agents, they are only ever capable of apparent communicative acts. They may look like communicative acts, but they are not. Without intentionality, there is no meaning.
This paper examines the role of trust in the shaping of rules and relationships within and between organisations. Firstly, we examine strands of literature on how trust constitutes an organising principle for intra- and inter-organisational trust levels to exist. Then we examine the downside of organisational trust when violated and not achieved. We then propose a model which examines the interplay between the developments of trust within and between organisations. Finally, we surmise by promoting explicitly the broader societal impact and relevance of organisational trust.
There is a growing concern that entrepreneurial behaviour has to be understood in the context in which it occurs. This includes the institutional context in which the entrepreneur operates (Welter and Smallbone, 2011; Martinelli, 2004). The marked paucity of literature which focuses on women entrepreneurship in the context of institutional void advances the need to explore parallel perspectives shaping trust relationships in Nigeria and Pakistan. In this study, we adopt the stance that trust reduces the expectation of opportunistic behaviour among women entrepreneurs (Bromiley and Cummings, 1995; McEvily et al., 2003) and is an essential lubricant to entrepreneurship (Welter, 2012).This view highlights that trust may be shaped by the institutional environment in which women entrepreneurs are embedded. Methods Accordingly, the empirical component is focused on a case study of female entrepreneurs drawn through a purposive and theoretical sampling process(Marshall and Rossman, 1999).Our choice of 12 female entrepreneurs (7 Nigerian and 5 Pakistani women) was aimed at comparing perceptions and experiences as it relates to their particular environment. Data was collected using iterations of semi-structured interviews held at the workplaces and homes of the respondents. These iterations helped in exploring emergent themes such as the building of trust relationships and respondent's perception of institutions. We have reasons to believe that the emergence of less formalised institutions which operate parallel to the formal ones help both Nigerian and Pakistani women to build their economies through entrepreneurial activity. Results Taken more broadly, this study seeks to examine the interplay between formal and informal institutions as a focal characteristic of developing countries. For instance the nature of institutional influences throws light on gender variations, as women may have less access to sources of capital and informal networks (Aidis et al., 2007).Given the weak formal institutions, women entrepreneurs in Nigeria and Pakistan were keen on building socially embedded relationships built on trust with their trading partners. This study therefore has practical implications for enhancing women entrepreneurship by contributing to the ongoing theoretical understanding of trust and institutional perspectives from an African and Asian context.
This paper aims to develop an understanding of trust in cross border trade networks dominating West African markets. To date most of the literature on trust and network relationships reveal a paucity of studies about West African traders. This paper attempts to address this gap by examining a range of relationships that have evolved as a result of weak formal institutions. Within the remit of this paper, we make an attempt to establish the role of trust in overcoming barriers to the survival of small businesses in West Africa. As this is a development paper, the organisation of this paper is three fold: firstly we commence by examining the topicality of trust from relevant literature. (2) we attempt to bring these conceptualisations to bear by examining the various complex economic and social relationships that shape cross border trade.(3) our discourse will be elucidated with the case of twelve traders operating between Nigeria, Ghana, Benin and Bukinafaso.
Sociological perspectives and research provide important and distinctive contributions to the understanding of entrepreneurship in three ways. The first is through the development of societal conceptions regarding productive activities that encompass the entrepreneurial role or function. The major alternatives emphasize socioeconomic systems as (a) moving toward an equilibrium (reflecting a broad consensus) or (b) reflecting the outcome of class competition (emphasizing conflict resolution). Both assume the inevitable dominance of massive productive organizations. These conceptions have recently been supplemented with attention to the dual nature of advanced economies or the benefits of flexible specialization. The second is through attention to specific societal characteristics affecting entrepreneurship: modernization; the role of the state in economic development; variations in the scope and nature of the unregistered (underground) economy; and the character of organizational populations and their ecological niche as they affect new firm foundings. The third is through attention to the impact of social context on the decisions of individuals to pursue entrepreneurial options. This includes attention to the individual's life course stage; social networks and embeddedness; ethnicity; and work experiences.
Scholars who study entrepreneurship have lent great value by exploring the factors that explain how entrepreneurs create new businesses and thus, how societies and economies grow and prosper. Although there has considerable research based on psychological and economic approaches to entrepreneurship, the influence of socio-cultural factors on enterprise development remains under studied. Therefore, the aim of this paper is to integrate, from a theoretical perspective, the socio-cultural factors and entrepreneurial activity. In this sense, the article points out that the institutional approach could be an apt framework to develop future research analyzing the socio-cultural factors that influence the decisions to create new businesses. Also, a brief overview of the content of each of the papers included in this special issue is presented.
Entrepreneurship is a prominent area of inquiry which is enriched by a substantial literature base and challenged by definitional deficiencies. As multiple perspectives of entrepreneurship have emerged, the question of an integrated theory of entrepreneurship has arisen. Yet, given the range of perspectives of entrepreneurship, this may be unachievable or create further challenges. Alternatively, this paper proposes a holistic approach to entrepreneurship. This holistic approach advocates the inclusion and recognition of the multiple perspectives of entrepreneurship, without the requirement for integration and any resultant compromise or concession. This has been achieved through the evaluation and synthesis of existing entrepreneurship literature, which was assessed against standing entrepreneurship conceptualizations. Existing models were synthesized and extended to develop an inclusive model, from which the proposition of a holistic approach emerged. This can facilitate the continued enlargement of the entrepreneurship field, while informing the conceptual parameters of the field and allow for interdisciplinary research without conceding entrepreneurship's claim as a distinct field of study. The discussion of this perspective of entrepreneurship allowed for future research opportunities to be identified. The exploitation of these research opportunities can potentially enrich the entrepreneurship field through a more nuanced understanding of innovation, entrepreneurial teams and entrepreneurial leadership.
Purpose
The purpose of this paper is to conceptualise social media usage (SMU) as a contributory, knowledge management (KM) tool towards entrepreneurial behaviour amongst small- and medium-sized enterprises (SMEs). Although an underdeveloped concept in entrepreneurship, the conceptual analysis of KM presents evidence which links SMU as complementary to changing KM conventions.
Design/methodology/approach
The pertinent KM and SMU literatures of the SME context were reviewed to form an understanding of this context. Employing a mixed-methods approach, a pragmatic, thematic investigation of SMU-enhanced KM was facilitated.
Findings
Substantial benefits of innovative SMU, as a management tool towards SME entrepreneurialism, were witnessed. SMU enhances the administration of real-time knowledge, encouraging creativity. However, longer-term costs of employing requisite personnel, and anticipated organisational restructuring, present challenges. The paper identifies the potentials of social media technologies in overcoming KM issues. The authors propose a reasoned process model towards entrepreneurial exploitation by acknowledging systematic phases of research, concept, institutionalise, develop, target and assess, referred to as the RCIDTA model.
Practical implications
The authors argue that KM, through social media, facilitates interactions to execute innovative processes within SMEs ever-changing infrastructures. It also informs nascent entrepreneurs, in considering the benefits of systematic KM, and novel SMU, opportunities. The RCIDTA model for SMEs can be utilised in improving knowledge ecosystems of entrepreneurial SMEs, promoting innovation towards sustained organisation growth.
Originality/value
This paper embraces the growing approach of SMEs applying SMU. SMU and its cost efficiency support the start-up activity. This paper highlights central issues concerning the exploitation of sector-specific KM, including organisational strategy, structure, brand formation, fiscal and personnel resource allocation and market share.
The theoretical and conceptual framework explains the path of a research and grounds it firmly in theoretical constructs. The overall aim of the two frameworks is to make research findings more meaningful, acceptable to the theoretical constructs in the research field and ensures generalizability. They assist in stimulating research while ensuring the extension of knowledge by providing both direction and impetus to the research inquiry. They also enhance the empiricism and rigor of a research. Thus, it is no exaggeration for Imenda (2014) to say that both the theoretical and conceptual frameworks give life to a research. Unfortunately, many postgraduate students and faculty staff at universities are confused of the two terms and apply them wrongly in their research papers. As a result, their research findings become weak because of the inappropriate application of a suitable theoretical framework and/or conceptual framework. This blurs the understanding of readers of the research paper who are lost, not knowing the purpose of the study, the importance of the study and the scholars the researcher is in dialogue with, whether in agreement or disagreement (Evan, 2007). A research without the theoretical or conceptual framework makes it difficult for readers in ascertaining the academic position and the underlying factors to the researcher's assertions and/or hypotheses. This renders the research sloppy and not appreciable as contributing significantly to the advancement of the frontiers of knowledge. This article explains with clear understanding, the two frameworks and how they could be utilized efficiently in the research expedition.
The effect of non-oil components export on the economic growth in Nigeria continue to be debated and tested in order for turning around of the nation's economic outlook for the future good, by strengthen non-oil export growth and success and also promote a non-oil export culture. This paper extends the previous empirical studies on the issue providing some evidence from time series data period over 1980 – 2011. In this study, the dependent variables were agricultural, manufacturing and services sector whereas the independent variable is the gross domestic product (GDP). The model was tested using unit root test, ordinary least square (OLS), serial correlation LM test and heteroskedasticity test to analyze the significant contribution between the dependent and independent variables. The result shows that agricultural and services sector of non-oil export component contributed significantly to the economic growth (GDP) of Nigeria. Also the result presents that there is no correlation and heteroskedasticity problem. Finally this paper draws some policy implications for the further studies to focus on the non-oil export component in Nigeria so has to ensure a turnaround of the nation's economic outlook (growth).
Purpose
The purpose of this paper is to explore how Chinese and Finnish managers in cross-cultural supply-chain relationships evaluate their business partners’ trustworthiness and distrustworthiness.
Design/methodology/approach
Representatives of two Finnish companies and their Chinese and Finnish suppliers were interviewed to collect qualitative data from 23 managers.
Findings
The Chinese managers emphasized relationship-specific, personalized trustworthiness. They highlighted personalized communication and benevolence, which manifested in respect and reciprocity, rooted in the Chinese notion of “guanxi” as personal ties. In contrast, the Finnish managers’ view of trustworthiness was more associated with depersonalized organizational attributes. They emphasized the dimension of integrity, especially promise-keeping. In addition, tentative signs of trust ambivalence, as a balance between trust- and distrust-related factors, were identified for both the Chinese and the Finns.
Research limitations/implications
Due to the exploratory nature of this study the validity of the findings is limited to these data and context. Future studies could explore other national contexts as well as the effects of industry, market position, and position in the supply chain.
Practical implications
The findings of this study bring a valuable understanding of the potential pitfalls and unique challenges in cross-border inter-firm transactions. These can enhance inter-firm trust building in a cross-cultural context.
Originality/value
This study enriches the view of trust as a holistic process of simultaneous evaluation of both trustworthiness and distrustworthiness. In this process, trust ambivalence could serve as the intermediate construct between trust and distrust. These two contrary yet complementary opposites constitute a duality to be managed from the perspective of yin-yang balancing.
This paper proposes that mass collaborative knowledge management (MCKM) and social media networks (SMNs) tend to enhance productivity in small and medium-sized enterprises (SMEs). A case study methodology was employed to highlight the complementary advantages of MCKM related to the use of SMNs in a small business operating in southern Italy. The research aims to contribute to the ongoing discussion on MCKM. This paper offers a fresh perspective by discussing the relevance of this construct for SMEs.
This study attempts to provide some understanding about SMEs’ access to finance within the West African sub-region with particular interest in establishing whether there are similarities and/or differences in the determinants of SMEs access to finance across countries in SSA. For robustness sake, we developed both subjective and objective measures of access to finance. Using data from World Bank’s Enterprise Survey data set, we examine the determinants of access to finance both at the sub-regional level and at the country-level. We found that, generally, at the sub-regional level, access to finance is strongly determined by factors such as firm size, ownership, strength of legal rights, and depth of credit information, firm’s export orientation and the experience of the top manager. However, we found important differences in the correlates of firms’ access to finance at the country level. The findings of this study therefore have important implications for policy.
This article, together with a companion video, provides a synthesized summary of a Showcase Symposium held at the 2016 Academy of Management Annual Meeting in which prominent scholars—Denny Gioia, Kathy Eisenhardt, Ann Langley and Kevin Corley—discussed different approaches to theory building with qualitative research. Our goal for the symposium was to increase management scholars’ sensitivity to the importance of theory-method “fit” in qualitative research. We have integrated the panelists’ prepared remarks and interactive discussion into three sections: an introduction by each scholar, who articulates their own approach to qualitative research; their personal reflections on the similarities and differences between approaches to qualitative research, and answers to general questions posed by the audience during the symposium. We conclude by summarizing insights gleaned from the symposium about important distinctions among these three qualitative research approaches and their appropriate usages.
The companion video is available on YouTube: https://youtu.be/_JdOSCzSpMc
Entrepreneurship research is still developing as a management science. This is especially visible when entrepreneurship research is compared to the disciplines from which it emerged, and it needs to develop its own methods and theories. Entrepreneurship research uses concepts garnered from diverse disciplines, which requires consideration of the central questions and the appropriate tools with which to study them. Several recommendations for research methods for an entrepreneurship paradigm are made: (1) less physics envy - avoid reductionism in entrepreneurship research and focus on the research as a whole through case studies; (2) fewer theoretical models and more empirical models - the present empirical knowledge of entrepreneurship research is inadequate for building robust theories; (3) less concern with sophisticated statistical analyses - entrepreneurial ventures begin with unique events and understanding them is one of the aims of entrepreneurship research. No amount of complex statistical analysis will substitute for field studies of the unique events; (4) more field research - entrepreneurship research will not get to the heart of the startup process unless it observed happening in the field; (5) more longitudinal studies - entrepreneurship is a process that evolves with time and doing only cross-sectional studies would cause much of the richness that comes from longitudinal studies to be lost; (6) dedicated researchers - better quality empirical research is needed that is exploratory or grounded and to achieve this more researchers are needed; (7) original field-derived data bases - it is difficult to do valid research on data bases that others have built since there may be unknown pitfalls, therefore entrepreneurship research should create its own data sets built from raw data; and (8) less obsession with revolutionary science - it is better to stress excellence in research, rather than glorifying extraordinary science and depreciating ordinary science. Excellent routine science is often more valuable than revolutionary science. (SFL)
This article examines the nature of indigenous management in relation to the success of SMEs in sub-Saharan Africa, taking Kenya and six SMEs under the management of Kenyan Africans, Kenyan Asians and Kenyan British as examples. It proposes that management systems, styles and practices, when appropriate to the local cultural contexts, will give rise to successful organizations. By formulating tentative hypotheses about this relation after reviewing the literature, the data from these case studies are interrogated first by using a 'template' derived from theories of management control to investigate the inter-continental cultural influences on local management, and then inductively to modify and develop the original hypotheses in view of possible intra-country influences. Paternalism, emerges as a common theme in the way cultural influences are combined, suggesting different types of paternalism for in-group and out-group organizational members. This is a possible success factor for local SMEs. Implications for future research in these areas and management practice are discussed.
‘This extremely timely publication addresses an important knowledge gap in this era of shifting economic power and global imbalances. Entrepreneurship is central to the growing success of the wider African economy and understanding the importance of trust within developing relationships can help the growth of long term profitable relationships. It also impacts positively in acting as a catalyst for the network development of local, national and international businesses. A further strength of the book is its cultural focus surrounding indigenous institutions. I am confident that readers will enjoy the innovative contents of this book and be influenced by its ideas.’
—Ian Fillis, Professor of Marketing and Entrepreneurship, Liverpool Business School, Liverpool John Moores University, UK
This book highlights the importance of understanding how trust and indigenous African cultural institutions enhance the development of entrepreneurial networks and relationships in Africa. Drawing on institutional theories, the author re-examines the way that entrepreneurial behaviour can be shaped, with a focus on trust, networks and the development of relationships. Analysing a combination of existing literature and empirical data from 50 internationally trading SMEs in Africa, this book reflects the growing interests of entrepreneurs, investors and corporate executives to develop trust and relationships with customers in order to invest and grow. By addressing the need for a greater understanding of how social and cultural institutions in Africa affect the continent’s economy, this book not only offers theoretical frameworks, but also future implications for practice and policy, and will provide essential reading for those studying emerging markets and globalisation, African business, and entrepreneurship more generally.
Marketing managers must know the time orientation of a customer to select and use marketing tools that correspond to the time horizons of the customer. Insufficient understanding of a customer's time orientation can lead to problems, such as attempting a relationship marketing when transaction marketing is more appropriate. The author suggests that long-term orientation in a buyer/seller relationship is a function of two main factors: mutual dependence and the extent to which they trust one another. Dependence and trust are related to environmental uncertainty, transaction-specific investments, reputation, and satisfaction in a buyer/seller relationship. The framework presented here is tested with 124 retail buyers and 52 vendors supplying to those retailers. The results indicate that trust and dependence play key roles in determining the long-term orientation of both retail buyers and their vendors. The results also indicate that both similarities and differences exist across retailers and vendors with respect to the effects of several variables on long-term orientation, dependence, and trust.
Transaction cost analysis is rapidly becoming an important theoretical paradigm in marketing. However, the accumulation of transaction cost studies has been accompanied by a growing body of criticism, primarily directed toward its underlying behavioral norm of opportunism. That norm is a serious theoretical deficiency, not only because it may be descriptively inaccurate, but also because it limits the applicability of the theoretical framework. The authors show that norms play a very significant role in structuring economically efficient relationships between independent firms. In the absence of supportive norms, it is not possible for parties whose specific assets are at risk to acquire vertical control as per the transaction cost prescription. Instead, those parties lose control because of their dependence. An empirical test of the conceptual model in a sample of manufacturer-supplier relationships shows good support for the authors’ hypotheses.
Relationship marketing—establishing, developing, and maintaining successful relational exchanges—constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
After close to two decades of strong economic activity, overall growth in sub-Saharan Africa decelerated markedly in 2015–16 as the largest economies experienced negative or flat growth. Regional growth started recovering in 2017, but the question remains of how trends in the economies stuck in low gear will spill over to the countries that have maintained robust growth. This note illuminates the discussion by identifying growth spillover channels. The focus is on trade, banking, financial, remittance, investment, fiscal, and security channels, which are the most prominent and most likely to transmit growth trends across borders. In addition to bringing together findings from a broad array of existing research, the note identifies countries that are the most likely sources of regional spillovers and those that are most likely to be impacted, and provides estimates for the size of these channels. It finds that intraregional trade and remittance flows are an important channel for growth spillovers, while banking channels are less important but will remain a risk going forward. Finally, the note documents other important spillover channels through financial markets contagion, revenue-sharing arrangements in fiscal unions, commodity-pricing policies, corporate investment, and forced migration. The main takeaway is that the level of interdependence among sub-Saharan countries is higher than is generally assumed. Consequently, there is a need for additional emphasis on regional surveillance and spillover analysis, along with traditional bilateral surveillance.
This study investigated the relationships between blame, victim and offender status, and the pursuit of revenge or reconciliation after a personal offense. Results from a sample of 141 government agency employees showed that blame is positively related to revenge and negatively related to reconciliation. In addition, victim-offender relative status moderated the relation between blame and revenge such that victims who blamed sought revenge more often when the offender's status was lower than their own. The victims' own absolute hierarchical status also moderated this relation such that lower, not higher, status employees who blamed sought revenge more often.
The paper examines the main characteristics of cassava production and gari marketing in North-West Province, Cameroon. Data collection procedures are outlined, together with an assessment of the problems encountered in the field in commodity flow and price surveys.
Analysis of price trends reveals the seasonal character of gari marketing and the sometimes complex way in which supply and demand functions at particular periodic markets influence urban price setting and intra-regional trade. The volume, value and spatial pattern of gari flows is assessed, indicating a predominantly two-level rural to urban distribution system which functions without recourse to a multiplicity of middlemen except under exceptional albeit rational circumstances. It is concluded that detailed study of the movement of a single commodity and the role of traders in its distribution can go some way towards revealing the nature of the functional relationship between market-places, and the structure and mechanisms of periodic marketing.
Issues are still raised even now in the 21st century by the persistent concern with achieving rigor in qualitative research. There is also a continuing debate about the analogous terms reliability and validity in naturalistic inquiries as opposed to quantitative investigations. This article presents the concept of rigor in qualitative research using a phenomenological study as an exemplar to further illustrate the process. Elaborating on epistemological and theoretical conceptualizations by Lincoln and Guba, strategies congruent with qualitative perspective for ensuring validity to establish the credibility of the study are described. A synthesis of the historical development of validity criteria evident in the literature during the years is explored. Recommendations are made for use of the term rigor instead of trustworthiness and the reconceptualization
and renewed use of the concept of reliability and validity in qualitative research, that strategies for ensuring rigor must be built into the qualitative research process rather than evaluated only after the inquiry, and that qualitative researchers and students alike must be proactive and take responsibility in ensuring the rigor of a research study. The insights garnered here will move novice researchers and doctoral students to a better conceptual grasp of the complexity of reliability and validity and its ramifications for qualitative inquiry.
Long a fruitful area of scrutiny for students of organizations, the study of institutions is undergoing a renaissance in contemporary social science. This volume offers, for the first time, both often-cited foundation works and the latest writings of scholars associated with the "institutional" approach to organization analysis. In their introduction, the editors discuss points of convergence and disagreement with institutionally oriented research in economics and political science, and locate the "institutional" approach in relation to major developments in contemporary sociological theory. Several chapters consolidate the theoretical advances of the past decade, identify and clarify the paradigm's key ambiguities, and push the theoretical agenda in novel ways by developing sophisticated arguments about the linkage between institutional patterns and forms of social structure. The empirical studies that follow--involving such diverse topics as mental health clinics, art museums, large corporations, civil-service systems, and national polities--illustrate the explanatory power of institutional theory in the analysis of organizational change. Required reading for anyone interested in the sociology of organizations, the volume should appeal to scholars concerned with culture, political institutions, and social change.
This review article focuses on the three control mechanisms that govern economic transactions between actors: price, authority, and trust. In contrast to conventional approaches that view market and hierarchy as mutually exclusive control mechanisms (or as poles of a continuum), we argue that price, authority, and trust are independent and can be combined in a variety of ways. For instance, price and authority are often played off each other within firms, while trust and price are sometimes intertwined to control transactions between firms. We also identify a type of organization largely ignored in the literature: the plural form. In the plural form, organizations simultaneously operate distinct control mechanisms for the same function. For example, organizations operate franchises and company-owned units under the same trademark, and companies sometimes make and buy the same part. To understand this form, the analytic focus must move from individual transactions to the broader architecture of control mechanisms
This article examines the impact of inward and outward aspects of internationalization. The effect of the inward process on outward moves has been the subject of limited research, although some evidence from studies of licensing and franchising in Australia suggests inward steps can sometimes play an important preparatory role in the outward process. Governments have for some time used inward international flows to force a reverse process—through strict countertrade policies, for example, or, as in the Australian case through its ‘partnership scheme.’ An important public policy question is how to regard international steps in any outward promotional scheme. For example, among individual firms there is a need to use inward moves in a more productive way to promote outward internationalization, perhaps by selecting foreign suppliers in part on the basis of their ability to contribute to an outward strategy.
- This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.
