The differential effects of government support, inter-firm collaboration and firm resources on SME performance in a developing economy

Drawing on the resource-based view of the firm and institutional theories, this study aims to model and examine how government support, inter-firm collaboration and managerial ties affect Small and medium-sized enterprises performance and further explores how firm specific resources mediate the relationships

Stella Zulu-Chisanga; Mwansa Chabala; Bernadette Mandawa-Bray


Scholarcy highlights

  • Introduction loSmall and medium-sized enterprises play a significant role in the growth of national economies
  • This study is one of the few studies to empirically show that the differential effects of inter-firm collaboration and managerial ties on SME performance are channeled through firm resources, in an under-researched developing Sub-Saharan African economy context
  • The study contributes to the small business strategy literature in three ways: First, we eu highlight the role that institutional support mechanisms, inter-firm collaboration and ties with managers of other firms play on financial performance; second, we establish how firm specific rsh resources mediate these relationships thereby extending previous works that suggest a direct relationship; and lastly, we uncover SME performance drivers and test the applicability of ip measures developed and validated in developed Western economies in an African developing economy
  • Performance of SMEs in developing economies is receiving increasing attention from scholars, er policy makers and the general public because of the role that these firms play in economic growth
  • While previous studies have attempted to establish an empirical connection between government support mechanisms, inter-firm collaboration and managerial ties, findings so far remain conflicting
  • Our study extends the theory of small business strategy and contributes to the body of existing literature by empirically showing that while government support is not significantly related to performance, inter-firm collaboration and om on managerial ties have a positive and significant effect on SME performance and their effects are channelled through firm resources
  • It would be interesting to use the measures adopted in this study to investigate how inter-firm collaboration om on and managerial ties increase financial performance of large firms in developed countries with ur na strong support institutions

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