Abstract
Despite the wide application of Informal Networking, there is still limited understanding on the phenomenon in enterprise continuum. This study analysed a comparative study on Informal networks and Enterprise transition: Case of Eldoret, in Kenya. The study was informed by Reeg’s onion model, it adopted a post-positivism research. Data was adopted from a thesis, where it was collected using questionnaires. A survey research design was employed. Multiple regressions were used to measure: Effects and strength of the relationship. AMOS was used for: Modeling, Likelihood approval, Nested and Hypothesis testing. The p < = 0.05 was considered statistically significant. Findings indicate: an average of KMO = 0.80. Entrepreneurial drivers on informal networks, had a negative influence; Informal networks had a positive influence on enterprise transition; public networks on enterprise transition had a negative influence; informal networks, public networks and private networks enters the model, all the results are significant , indirect effect of public networks and private networks was supportive.
Highlights
Finding indicate that Informal networks had a positive influence on enterprise transition (β = .719, t = 6.727, ρ
Study by Nasiuma (2016) on entrepreneurial drivers found out that informal networks when tested by multiple regression and special process procedure both yielded results which showed that entrepreneurial drivers were not supportive to enterprise transition, while result when employed technique of SEM, indicate a positive with β = 146
In conclusion,among the null hypothesis tested, finding indicates that Entrepreneurial drivers on Informal networks had a positive influence on enterprise transition; Entrepreneurial drivers on public networks had a positive influence; public networks on enterprise transition had a negative influence; Entrepreneurial drivers had a positive influence on private networks; private networks had a positive influence on enterprise transition
Summary
Studies have argued that the success of SMEs in Egypt depend on the public networks (Hampel, Milagrosa, Loewe & Reeg, 2013; ILO, 1995 and Rosa, 1997). Much of the evidence on gender-related entrepreneurial activity comes from studies based in the United States and European countries; placing the generalization of these findings in an African setting in question, Víctor Pérez Centeno, 2014. This is considered an important research gap in the current study if, as the Kenyan nation, we have to address the gender disparities in entrepreneurial activities and its resultant limitations. The findings on how entrepreneurs network may help the hardware and electrical enterprises to identify their networking weaknesses, and accelerate their network efforts These studies improve understanding of the network-building process in Nakuru County, Kenya
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