A longitudinal analysis of the moderated effects of networking relationships on organizational performance in a sub-Saharan African economy

Abstract

The conventional wisdom from studies in both advanced Western economies and emerging economies indicate that managerial networking relationships matter. This article examines the circumstances under which managerial networking relationships matter by focusing on how the effect of managerial networking relationships on organizational performance is contingent upon certain organizational and environmental characteristics.The development and utilization of managerial networking relationships with external entities is broadened to include those with top managers of other firms, political leaders, government bureaucratic officials, and community leaders. Using data from 106 organizations in Ghana over two time periods, the findings show that only managerial social networking relationships with top managers of other firms, government bureaucratic officials, and community leaders enhance organizational performance. Moreover, the effect of networking relationships on performance is contingent on organizational as well as environmental characteristics. The findings of the moderating analyses clearly indicate that firms in Ghana should not establish networking relationships with external entities without considering the characteristics of their organizations and the environment.