Social networking for firm growth of small and medium-sized enterprises (SMEs) in Ghana: a social skills and socio-cultural identity perspective

Despite the general optimism regarding the benefits of social networking, the empirical results on the impact of social networks on entrepreneurial outcomes, including firm growth, remain inconsistent and murky with considerable differences in effect sizes and significance levels. Accordingly, this thesis proposes that the conflicting results could be due to the lack of consideration of other variables that need to be considered, namely, entrepreneurs’ social skills and socio-cultural factors – gender, ethnicity, and religion. Drawing on the social network theory and social identity theory, this thesis first examines how entrepreneurs’ external and internal social networks, and social skills affect firm growth, and how entrepreneurs’ social skills affect the relationship between their external and internal social networks, and firm growth. Second, the thesis examines whether or not differences exist between entrepreneurs of different genders, ethnicities, and religions in their external and internal social networks, and social skills, and their effect on firm growth. The findings of the thesis reveal that entrepreneurs’ social skills have a direct, positive, and significant effect on firm growth and also moderated their external social networks’ impact on firm growth. In contrast, entrepreneurs’ social skills did not moderate the relationship between their internal social networks and firm growth. Furthermore, the findings provided empirical support for the proposition that entrepreneurs’ socio-cultural background affect their ability to utilise social networks and social skills. Considering these findings, the thesis identified several socio-cultural factors (gender, ethnicity, and religion) that pose significant differences on the effect of entrepreneurs’ external and internal social networks, and social skills on firm growth.