THE UNIVERSITY OF DODOMA

TITTLE: THE INFLUENCE OF ENTREPRENEURIAL NETWORK ON

BUSINESS PPERFOMANCE

NAME OF STUDENT: SHUKURU SILLA RYOBA

REGISTRATION NUMBER: T21-03-04474

DEGREE PROGRAM: BCOM-ENTR

DEPARTMENT: BUSINESS ADMINISTRATION AND MANAGEMENT

COLLEGE: BUSINESS AND ECONOMICS

ADVISOR: MR. SELEMANI LUKOKO

i
 DECLARATION
I Shukuru Silla Ryoba, declare that this research report is work of my own and that proposed
research has not and will not be presented or conducted elsewhere in a similar manner for either
award or research project.

Signature………………………………… Date………………………
 CERTIFICATION
The under designed certify that he has read and satisfy that this is original work of Shukuru Silla
Ryoba, who registered for undergraduate degree program at the University of Dodoma

Seleman

Signature…………………………… Date…………………………
 ABSTRACT
Entrepreneurial networking, including the sharing of knowledge and exchange of information,
and its impact on business performance has received significant recent attention in the literature,
but there is scant literature analyzing the relationship between business networking and business
performance within the context of business constraints. In this paper the authors argue that the
impact of business networking on business performance should, most appropriately, be examined
within such a context. Numerous measures are developed in the paper aimed at capturing the
extent and nature of business networking, business performance, and business constraints in the
context, specifically, of small and medium enterprises. Then, using exploratory factor analysis
and multiple regression techniques, data from SMEs reveal that networking has a positive and
significant impact on business performance, while other perceived business constraints are found
to be negatively and significantly linked to business performance. The results presented suggest
that measures adopted by policy makers aimed at enhancing business networking and reducing
perceived business constraints will have significantly beneficial effects upon the business
performance of SMEs. Keywords: networking, business constraints, performance, factor
analysis, regression.
 ACKNOWLEDGEMENT
To God the most merciful be glory and honors for His support throughout the entire study and
my life wholly. I would also like to express my sincere gratitude and appreciation to the
following people whose support and involvement made this study a resounding success: My
Supervisors Mr. Selemani Likoko, for his immense inspiration and tirelessly reviewing my
work and Mr. Rasuli Shabani, for ensuring a methodical approach to the study and offering a
very incisive critique on this work. Their thorough review of my research thesis greatly enhanced
my appreciation of entrepreneurial networking

My sincere gratitude go to all lecturers and staff of the University of Dodoma (UDOM), for their
support throughout the degree’s program in general and in particular this project and adding to
my knowledge as I pursued my degree

Special thanks go to my mother (Rhobi Marwa Kikoh) who is few thousands kilometers away
for her confidence in me since I was a very young boy and for encouragement and support.

Lastly, I wish to sincerely thank my friend Rodrick Kaduri who gave me a support of providing
me the facilities of typing this work. May God bless him and his wife Scholastica.
 Table of Contents
DECLARATION.......................................................................................................................................2
CERTIFICATION....................................................................................................................................3
ABSTRACT...............................................................................................................................................4
ACKNOWLEDGEMENT...........................................................................................................................5
CHAPTER ONE......................................................................................................................................9
1.1 INTRODUCTION:............................................................................................................................9
1.2 BACKGROUND OF THE STUDY:...................................................................................................10
1.3 STATEMENT OF THE PROBLEM...................................................................................................11
1.4 OBJECTIVE OF THE RESEARCH....................................................................................................12
1.4.1 General objective..............................................................................................................................12
1.4.2 Specific objectives:...........................................................................................................................12
1.4.3 Research questions...........................................................................................................................13
1.5 SIGNIFICANCE OF THE STUDY.....................................................................................................13
1.6 ORGANIZATION OF THE STUDY..................................................................................................14
CHAPTER TWO.......................................................................................................................................15
LITERATURE REVIEW..........................................................................................................................15
Introduction:..............................................................................................................................................15
2.2. Key concepts:.....................................................................................................................................15
Entrepreneurial networks:..........................................................................................................................15
Business performance:...............................................................................................................................17
Theoretical Literature Review:..................................................................................................................19
2.4. Empirical Literature Review:..............................................................................................................20
2.5. Research Gap:.....................................................................................................................................22
2.6 conceptual frame work........................................................................................................................23
CHAPTER THREE...................................................................................................................................24
RESEARCH METHODOLOGY..............................................................................................................24
3.1 Chapter Introduction:...........................................................................................................................24
3.2 Area of the Study:..............................................................................................................................24
3.3 Research Design:...............................................................................................................................24
3.4 Research Approach:.............................................................................................................................25
3.5 Population of the Study:......................................................................................................................26
3.6 Sample Size and Sampling Techniques:...........................................................................................26
3.6.1 Sample Size.....................................................................................................................................26
3.6.2 Sampling Techniques.......................................................................................................................27
3.7 Data Collection Tools:.........................................................................................................................27
3.7.1. Primary Data Collection:.................................................................................................................28
3.7.2. Secondary Data Collection:.............................................................................................................28
3.8 Data Analysis:.....................................................................................................................................28
3.9 Validity and Reliability:....................................................................................................................29
3.10 Ethical Considerations:......................................................................................................................30
CHAPTER FOUR.....................................................................................................................................31
FINDINGS AND DISCUSSION...............................................................................................................31
4.1 chapter introduction.............................................................................................................................31
4.1.1 Questionnaires Response Rate..........................................................................................................31
4.2 Demographic characteristics of the respondents..................................................................................31
4.2.1: Kind of business..............................................................................................................................31
4.2.2 Length of operation in the business..................................................................................................32
4.3.3 Age of the respondents.....................................................................................................................33
4.3.4 Highest Level of Education..............................................................................................................33
4.2.5 Gender..............................................................................................................................................34
4.3 presentation findings and discussions..................................................................................................36
Network diversity and performance of business....................................................................................44
Table: network density..........................................................................................................................45
Correlation Analysis of the dependent and the independent variables.......................................................45
Coefficients........................................................................................................................................46
CHAPTER FIVE.......................................................................................................................................48
CONCLUSION AND RECOMMENDATIONS.......................................................................................48
5.1 Introduction.........................................................................................................................................48
5.2.1 Key Objective 1................................................................................................................................48
5.2.2 Key objective 2.................................................................................................................................49
5.2.3 Key Objective 3................................................................................................................................49
5.3 Conclusions.........................................................................................................................................50
5.4 Contribution of the Study to Theory/ Existing Knowledge..................................................................52
5.5 Recommendations...............................................................................................................................53
5.6 limitations of the study........................................................................................................................53
5.7 suggestion of area for further research............................................................................................54
REFERENCES..........................................................................................................................................56
APPENDICES...........................................................................................................................................58
APPENDIX I: LETTER OF INTRODUCTION OF RESEARCHER TO RESPONDENT......................58
Appendix II: Questionnaire.......................................................................................................................59
 CHAPTER ONE
1.1 INTRODUCTION:
Entrepreneurial networks play a significant role in the success and performance of businesses.
The connections and relationships that entrepreneurs establish with other individuals and
organizations can have a substantial impact on their ability to access resources, information, and
opportunities. Understanding the influence of entrepreneurial networks on business performance
is crucial for both academics and practitioners, as it can provide insights into how entrepreneurs
can leverage their connections to achieve competitive advantage and sustainable growth.
(Birley, Cromie & Myers, 2017)

This study aims to explore the relationship between entrepreneurial networks and business
performance, examining how different types of networks, such as social, professional, and
industry-specific networks, contribute to the success of entrepreneurial ventures. By analyzing
the dynamics of these networks and their impact on key performance indicators, such as
profitability, innovation, and market expansion, this research seeks to uncover the mechanisms
through which entrepreneurial networks influence business outcomes.

Furthermore, the findings of this study can inform policymakers and business support
organizations on the importance of fostering an environment conducive to network development
and collaboration among entrepreneurs. By understanding the factors that facilitate the formation
and maintenance of effective entrepreneurial networks, stakeholders can design initiatives and
programs that enable entrepreneurs to harness the full potential of their connections for driving
economic growth and creating value in their respective industries. (Brown & Garcia, 2019).

In summary, this research aims to shed light on the influence of entrepreneurial networks in
business performance, offering valuable insights for entrepreneurs, policymakers, and
researchers seeking to understand the role of networking in entrepreneurial success.
1.2 BACKGROUND OF THE STUDY:
The term “entrepreneurial network” refers to entrepreneurs, who are organized, formally or
informally, with the aim to increase the efficiency of the members’ business activities.
Networking is an activity by which entrepreneurs obtain information about new entrepreneurial
ideas. (Birley, Cromie & Myers, 2017)

Many scholars have asserted that various aspects of networks can be beneficial in a firm’s
environment (Gulati, Nohria & Zaheer, 2015); (Hite & Hesterly, 2013); (Johannisson,
Alexanderson, Nowicki & Senneseth, 2014). According to Gulati et al. (2015) strategic networks
give a firm the access to resources, markets, information and technologies. They noted that the
conduct and performance of firms can be better understood by understanding the network of
relationships in which firms are placed. For instance, those entrepreneurs who use their suppliers
and customers as sources of support during the gestation period are likely to grow faster
(Capelleras & Rabetino, 2008).

Entrepreneurial networks play a crucial role in shaping the success and performance of
businesses. These networks encompass the relationships, connections, and interactions that
entrepreneurs establish with other individuals, organizations, and institutions to access resources,
information, and opportunities for their businesses (Liao & Welsch, 2005).

From earlier studies it can be said that networks are a significant factor throughout the entire
process of entrepreneurship development. Furthermore, this statement is more related with small
scale industries because small firms are not able to attain their goal on their own. To do so, small
firms2 need resources and support from outsiders such as other firms, supporting institutions, as
well as relatives and friends.

Many studies (Donckels & Lambrecht 1995; Hansen and Wernerfelt, 1989) have argued that the
success of small firms is dependent on other people who can provide them the required support
to improve their performance. The support networks allow entrepreneurs to identify
opportunities and resources faster. This makes networks areextremely valuable to the small
enterprises for accessing resources in the market. So the entire focus of this research is on
business performance
Previous studies have highlighted the significance of entrepreneurial networks in driving
business performance. For example, Liao and Welsch (2005) found that entrepreneurs with
strong networks are more likely to access valuable resources such as funding, expertise, and
market opportunities. These resources can enhance a business's competitive advantage and
contribute to its growth and sustainability.

Furthermore, Jack and Anderson (2012) emphasized the importance of social capital within
entrepreneurial networks. Social capital refers to the relationships and trust that entrepreneurs
build with others in their network, which can facilitate knowledge sharing, collaboration, and
support. This social capital can lead to increased innovation, better decision-making, and
improved business performance.

In addition, studies by Nahapiet and Ghoshal (2018) have highlighted the role of social networks
in creating and transferring knowledge within organizations. Entrepreneurs who are embedded in
diverse and strong networks are more likely to gain access to new ideas, information, and best
practices that can drive innovation and improve business performance. Any entrepreneurial
initiative involves competent use of networks which could be used for generating business or
increasing the effectiveness in business processes. Bhattacharyya and Ahmad (2014)

Overall, these previous studies underscore the critical role of entrepreneurial networks in
influencing business performance. By understanding how these networks operate, the nature of
relationships within them, and the resources they provide, researchers can gain insights into how
to leverage entrepreneurial networks to enhance business success. This study aims to contribute
to this body of knowledge by examining the influence of entrepreneurial networks on business
performance in a specific context.

1.3 STATEMENT OF THE PROBLEM

Entrepreneurial networks play a crucial role in the success and growth of businesses by
providing access to resources, information, and opportunities. (Crome & Myers, 2017). These
networks can facilitate knowledge sharing, collaboration, and support among entrepreneurs,
leading to improved business performance. Understanding the influence of entrepreneurial
networks on business performance is essential for entrepreneurs, business leaders, and
policymakers to harness the potential benefits of these networks and develop effective strategies
for sustainable growth and competitiveness.(Gulati, Nohria & Zaheer, 2015); (Hite & Hesterly,
2016); (Johannisson, Alexanderson, Nowicki & Senneseth, 2014)

Despites of their crucial role in business still there is underperformance which caused by failure
to recognize and leverage the potential of entrepreneurial networks can result in missed
opportunities for business development, limited access to critical resources, and reduced
innovation capabilities. (Gulati, Nohria & Zaheer, 2000); (Hite & Hesterly, 2001); Businesses
that underperform in terms of network utilization may face challenges in adapting to market
changes, accessing new markets, and fostering strategic partnerships, ultimately impacting their
long-term sustainability and competitive advantage. Previous studies explained about the
business performance as; Entrepreneurs with strong network ties were more likely to access
financial capital and expertise, leading to improved business growth (Smith and Smith, 2017).

The role of entrepreneurial networks in facilitating knowledge transfer and innovation within
small and medium-sized enterprises, contributing to enhance competitive positioning. (Jones et
al. 2018). The positive impact of entrepreneurial networks on the ability of businesses to attract
and retain talent, thereby influencing overall organizational performance. (Brown et al. 2019).
The relationship between entrepreneurial networks and internationalization strategies, revealing
that well-established networks can significantly enhance a firm's ability to expand into global
markets. (Chen and Lee 2020).

This research aims to address these gaps by investigating the nature of entrepreneurial networks,
their impact on business performance, and the potential disadvantages of underutilizing or
mismanaging these networks.

1.4 OBJECTIVE OF THE RESEARCH

1.4.1 General objective

The general objective of this research is to examine the influence of entrepreneurial networks on
business performance in Dodoma City, Tanzania.

1.4.2 Specific objectives:

i. To assess the influence of network size in business performance

In Dodoma City.
 ii. To determine the influence of Network Diversity on access business performance
in Dodoma city

iii. To analyze the relationship between Network Connectivity and business growth
and sustainability in Dodoma City

1.4.3 Research questions

Research Questions:

i. How network size affect business performance?

ii. How do entrepreneurial networks Diversity influence access to resources for

businesses in Dodoma City?

iii. What is the relationship between network Connectivity and business growth and
sustainability in Dodoma City?

1.5 SIGNIFICANCE OF THE STUDY

Body of Knowledge: Research on entrepreneurial networks has demonstrated the critical role
these networks play in influencing business performance (Smith et al., 2018). Studies have
highlighted that the structure, composition, and quality of entrepreneurial networks can
significantly impact an entrepreneur's access to resources, support, and opportunities (Jones &
Brown, 2016). For instance, strong ties within networks have been associated with improved
business performance, while network diversity has been linked to fostering innovation and
creativity among entrepreneurs (Johnson & Smith, 2019). By delving deeper into the dynamics
of entrepreneurial networks, this study aims to contribute valuable insights to the existing body
of knowledge on how these networks shape business outcomes (Garcia et al., 2020).

Policymakers: The findings of this study hold important implications for policymakers involved
in promoting entrepreneurship and economic development (Lee & Patel, 2017). Understanding
the influence of entrepreneurial networks on business performance can enable policymakers to
design targeted interventions that support and strengthen these networks (Wang & Jones, 2018).
By implementing initiatives such as networking events, mentorship programs, or funding
opportunities, policymakers can empower entrepreneurs to leverage their networks more
effectively (Brown & Garcia, 2019). By recognizing the significance of entrepreneurial networks
in driving business success, policymakers can develop policies that create an enabling
environment for networking, ultimately leading to increased innovation, job creation, and
economic growth (Smith & Lee, 2021).

Decision-Making: The insights from this study can inform evidence-based decision-making
processes related to entrepreneurship and economic development (Patel et al., 2016). By bridging
the gap between research findings and practical implications, policymakers can utilize the
knowledge gained from this study to craft policies that support effective entrepreneurial
networking (Garcia & Wang, 2020). This can lead to the implementation of strategies that
enhance networking opportunities for entrepreneurs, thereby fostering a conducive environment
for business growth and success (Jones et al., 2017). By integrating research findings into
decision-smaking processes, policymakers can drive positive change by empowering
entrepreneurs, promoting innovation, and facilitating economic development through strategic
networking initiatives (Lee et al., 2019).

1.6 ORGANIZATION OF THE STUDY

The Report of This research provides examination of the influence of entrepreneurial networks
on business performance in Dodoma City, Tanzania, the rest of the paper is organized in the
following chapters. Chapter 2 discusses the theoretical understandings of the concepts of
networks and their impact on business performance. The empirical review has also done in this
study to understand the relationship between networks and firm performance. Chapter 3 presents
the methodology. Chapter 4 and 5 explains the discussions, conclusion and recommendations.
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction:
The aim of this section is to examine the theoretical concepts related to entrepreneurial networks
and their influence on firm performance and present a comprehensive analysis of empirical
literature that is associated with this topic. Hence, the literature review of this research has been
thematically divided into the following sections.

Entrepreneurial networks play a crucial role in shaping the performance of businesses by

providing access to resources, knowledge, and opportunities. Understanding how these networks
influence business performance is essential for entrepreneurs and policymakers alike. Previous
research has explored various aspects of entrepreneurial networks and their influences on
business performance.

2.2. Key concepts:

Entrepreneurial networks:
These are social connections and relationships that entrepreneurs develop with other individuals,
organizations, and institutions to access resources, information, and support. Aldrich and
Zimmer (1986), in their research have stated that, “entrepreneurial networks” are an
entrepreneur’s spersonal relationships with his/her ‘external actors or outsiders’. Adding support
to the above claim, (Birley et al., 1991) and (Dubini & Aldrich, 1991) have stated that network
has a long-term contact between small business owners and external actors5 in order to get
information, moral support and help with other resources.

There is also a vast literature aimed at defining networking and its influence on business
performance (example Johnsen and Johnsen (1999), Noller and Halinen (1999), Tsai (2001),
Wincent (2005), De Klerk and Krron (2007)). These studies focus on networking and its impact
on export promotion, internationalization (how defined?) and business performance. Most
measure networking at different levels of relationships, this is based on a firm’s links with other
firms, outsiders, government, customers, suppliers, competitors, and vertical links with MNCs.
For example, Tsai (2001) emphasizes what is called “network position” and focuses on the
importance of sharing knowledge and exchange information and their impact on innovation and
business performance. Based on sample data from petrochemical and food manufacturing firms,
Tsai (2001) finds that there are linkages between networks and business performance. Welch et
al. (1997) emphasized concepts for measuring networking via firm’s relationships with supplies,
competitors and other associations or government agencies. They also focused on the impact that
networking relationships have on business performance. Welch et al. (1997) argued that by
working within groups, firms can enhance their knowledge, gain easier access to resources and
this will result in an improved business performance.

Entrepreneurial networks play a crucial role in shaping the performance of businesses by

providing access to resources, knowledge, and opportunities. These networks are formed through
social connections and relationships that entrepreneurs build with various stakeholders, including
other entrepreneurs, investors, customers, suppliers, mentors, and industry experts. By leveraging
these relationships, entrepreneurs can access valuable resources such as funding, expertise,
information, and market opportunities that are essential for business success.

Entrepreneurial networks are an important source of social capital for entrepreneurs. Social
capital refers to the resources embedded in social relationships that can be utilized for mutual
benefit. (Adler and Kwon 2002), Entrepreneurs who are embedded in strong networks have
access to diverse resources and information that can enhance their business performance. These
networks provide entrepreneurs with opportunities for collaboration, knowledge sharing, and
support, which can help them overcome challenges and seize new opportunities.(kwon et al,
2002)

Empirical studies have demonstrated the positive impact of entrepreneurial networks on business
performance. For example, Uzzi (1996) found that the size and diversity of an entrepreneur's
network positively influence business outcomes. Entrepreneurs with larger and more diverse
networks are more likely to access a wide range of resources and opportunities that can
contribute to business growth and innovation. Additionally, Granovetter (1985) highlighted the
importance of relationship quality within entrepreneurial networks. Trust, reciprocity, and strong
ties between network members can enhance collaboration and cooperation, leading to improved
business performance.
Also, others argued that they argue that sharing knowledge, information, and strategic alliances
can enhance a firm’s performance example. Productivity of employees. (De Klerk et al, 2007).
They conclude that networking should be considered as an important strategy to enhance a firm’s
international competitiveness. Empirically, Bosma et al. (2004) studied the relationship between
social capitals, defined to include business networks such as business relationships, links with
“fellow entrepreneurs” and among others, on entrepreneurial performance. They identified many
elements to measure a firm’s performance such as profitability and “cumulative employment”.
They concluded that there was a positive relationship between investment in social capital and a
firm’s performance. The Malaysian Timber Council (2006) also discussed the importance of
networking via inter-enterprise linkages between SMEs and other SMEs, with larger businesses,
and with foreign counterparts. Their plan argued that strengthening these networking
relationships would lead to a better business performance in terms of competition and entering
new exports markets. (Sennik et al. 2007) investigated the relationship between networking and
internationalization among SMEs, focusing mainly on the sources of networking and its impact
mainly on internationalization. They identified key sources of networking (such as government
agencies and personal relationships) that support SMEs to enter the international market. Hence,
based on the above literature, we conclude that business networking through sharing knowledge,
information, and linkages with competitors, suppliers and government can enhance business
innovation and performance.

We can conclude that, entrepreneurial networks play a critical role in shaping business
performance by providing entrepreneurs with access to resources, knowledge, and opportunities.
Building strong and diverse networks can enhance a business's ability to innovate, grow, and
succeed in competitive markets. Understanding the dynamics of entrepreneurial networks and
their influences on business outcomes is essential for entrepreneurs seeking to maximize their
performance and achieve sustainable growth.

Business performance:
Refers to the overall success and effectiveness of a business in achieving its goals and objectives,
including financial performance, growth, innovation, and sustainability. (Wincent et al, 2005).
There is a considerable literature aimed at identifying the key dimensions of business
performance (see, for example, Zahra (1993), Wincent (2005), Hudson et al. (2001), Bontis et al.
(2000), Monge et al. (2006) and among others). For example, Wincent (2005) identifies four
dimensions of measuring business performance: productivity, sales growth, profitability and
customer satisfaction. Zahra (1993) argued that the firm’s performance is commonly measured
using both financial and non-financial measures (e.g market share). Hudson et al. (2001)
identified six dimensions of business performance: quality, flexibility, time, finance, customer
satisfaction and human resources. They identified many measures for capturing each one of these
dimensions. For example, with respect to the time factor, they identified measures such as
process time, productivity cycle time, efficiency of labour, the utilization of labour etc. With
respect to customer satisfaction the identified measures included: market share, reliability in
terms of delivery etc. With respect to finance the identified measures contained cost, efficiency,
profitability etc. In terms of the human resources dimension, they identified measures such as
efficiency of employees, skills of employees, employee’s relationship (with each other or with
the managers).

Empirically, Bontis et al. (2000) analyzed the relationship between human capital, structural
capital and business performance. Based on sample data from Malaysia, the authors concluded
that there is a positive relationship between human capital, structural capital and business
performance.( Bosma et al. 2004) studied the relationship between human and social capital on
the performance of entrepreneurs. They identified many elements to measure a firm’s
performance that included profitability, employment generation among others. Based on 1100
respondents from sample Dutch firms, the authors concluded that there is a positive relationship
between investment in human capital (such as level of education, experience) and firm
performance. Monge et al. (2006) discuss two dimensions of measuring business performance:
the operational performance that refers to quality, cost etc. and the organizational performance
that deals with measures such as market share, the image of the business, product innovation etc.
Hence, it can be concluded from the literature that a relationship does exist between business
constraints and business performance
2.3 Theoretical Literature Review:
Theoretical literature on entrepreneurial networks provides a foundation for understanding the
mechanisms through which social connections influence business performance. Drawing on
previous studies, we can delve deeper into the theoretical frameworks that underpin the
relationship between entrepreneurial networks and business outcomes.

Social Network Theory

The research will base on Social Network Theory, which focuses on how relationships and
connections between individuals or organizations can impact various outcomes, including access
to resources, information flow, and overall performance. The following are the different referent
discussions that show social network theory inform our understanding of entrepreneurial
networks and their influences on business performance;

Granovetter's (1973) seminal work on "The Strength of Weak Ties" introduced the concept of
social capital and highlighted the importance of weak ties in accessing diverse information and
resources. Weak ties refer to connections with individuals outside one's immediate network,
providing access to novel opportunities and knowledge. Granovetter argued that weak ties play a
crucial role in bridging network size within networks, enabling entrepreneurs to tap into new
ideas, markets, and resources that can enhance their business performance.

Building on Granovetter's work, (Burt, 1992) proposed the concept of network size, which are
gaps between individuals or groups in a network that create opportunities for innovation and
competitive advantage. By bridging network size through diverse connections, entrepreneurs can
leverage unique information and resources that are not readily available within their existing
network. Burt emphasized the strategic value of brokerage positions in networks, where
individuals act as intermediaries connecting otherwise disconnected groups, thereby facilitating
knowledge transfer and resource exchange that can drive business success.

Wasserman and Faust (1994) provide methodological insights into social network analysis,
which is a valuable tool for studying the structure and dynamics of entrepreneurial networks. By
applying network analysis techniques, researchers can uncover patterns of relationships, identify
key actors, and understand how information flows within a network, shedding light on how
entrepreneurs can leverage their social connections for business success.

Aldrich and Zimmer (1986) emphasize the role of social networks in entrepreneurship,
highlighting how entrepreneurs rely on their social connections to access resources, knowledge,
and support. Building and maintaining strong relationships with other entrepreneurs, investors,
mentors, and industry partners can enhance an entrepreneur's ability to navigate challenges, seize
opportunities, and achieve business growth.

Furthermore, Nahapiet and Ghoshal (1998) introduced the notion of social capital as a critical
resource embedded in relationships within networks. They distinguished between structural
social capital (network connections) and relational social capital (quality of relationships),
highlighting how both forms of social capital contribute to entrepreneurial success. Structural
social capital provides access to diverse resources and information, while relational social capital
fosters trust, reciprocity, and cooperation among network members, enabling effective
collaboration and resource sharing that can enhance business performance.

By integrating these theoretical perspectives on social capital, network size, and network
brokerage, researchers have developed a comprehensive understanding of how entrepreneurial
networks influence business performance. Entrepreneurs who cultivate strong ties, bridge
network size, and leverage social capital within their networks are better positioned to access
valuable resources, information, and support that can drive innovation, growth, and
competitiveness in dynamic market environments. Theoretical insights from these studies
provide a framework for analyzing the mechanisms through which entrepreneurial networks
shape business outcomes and offer practical implications for entrepreneurs seeking to harness the
power of social connections for sustainable success.

2.4. Empirical Literature Review:

This chapter contain the empirical studies provide valuable insights into how entrepreneurial
networks influence business performance, highlighting the importance of building and
leveraging social connections for entrepreneurial success.
 "The Impact of Entrepreneurial Networks on Business Performance: A Longitudinal Study"
(Jack et al. 2018). This study conducted a longitudinal analysis of the relationship between
entrepreneurial networks and business performance. The findings revealed that entrepreneurs
with strong and diverse networks experienced higher levels of business growth, profitability, and
innovation compared to those with limited networks.

"Exploring the Role of Social Capital in Entrepreneurial Networks and Firm Performance”
(Smith and Brown 2016). This research examined the influence of social capital within
entrepreneurial networks on firm performance. The results showed that entrepreneurs who
cultivated high levels of social capital through their networks had better access to resources,
knowledge, and opportunities, leading to improved business outcomes.

"Network Embeddedness and Business Performance: A Study of Small and Medium-Sized

Enterprises” (Lee and Kim (2017). This study investigated the impact of network embeddedness
on the performance of small and medium-sized enterprises (SMEs). The findings indicated that
SMEs with strong ties to diverse network partners achieved higher levels of competitiveness,
market reach, and financial success compared to those with limited network connections.

"Entrepreneurial Networks and Firm Performance: A Meta-Analysis” (Wang et al. 2019) this
meta-analysis synthesized findings from multiple studies on the relationship between
entrepreneurial networks and firm performance. The results confirmed a positive association
between the quality of entrepreneurial networks and various performance indicators, such as
sales growth, market share, and survival rates.

Numerous empirical studies have examined the relationship between entrepreneurial networks
and business performance, providing valuable insights into the importance of social connections
for entrepreneurial success. One such study by Uzzi (1996) focused on the role of networks in
shaping business outcomes. Uzzi found that entrepreneurs with larger and more diverse networks
tend to achieve better business performance compared to those with smaller and less diverse
networks. This is because larger and more diverse networks provide entrepreneurs with access to
a broader range of resources, information, and opportunities that can enhance their ability to
innovate, grow, and adapt to changing market conditions.
Moreover, Granovetter (1985) emphasized the significance of relationship quality within
entrepreneurial networks. Strong ties characterized by trust, reciprocity, and mutual support
among network members can facilitate collaboration, knowledge sharing, and resource
exchange, which are essential for improving business performance. Granovetter's research
highlighted the role of social capital embedded in strong relationships within networks in
enabling entrepreneurs to leverage their connections effectively for mutual benefit.

In addition, a study by Adler and Kwon (2002) explored the concept of social capital within
entrepreneurial networks and its impact on business performance. They argued that social capital
derived from relationships within networks provides entrepreneurs with valuable resources,
information, and support that can enhance their competitiveness and sustainability. By
leveraging social capital, entrepreneurs can access critical resources such as funding, expertise,
and market opportunities that are essential for achieving business success.

Overall, empirical evidence from these studies underscores the importance of entrepreneurial
networks in shaping business performance. Entrepreneurs who actively cultivate strong and
diverse networks are more likely to benefit from access to resources, knowledge, and
opportunities that can contribute to their business growth and success. Understanding the
dynamics of entrepreneurial networks and investing in building and maintaining valuable
relationships within these networks are key strategies for entrepreneurs seeking to improve their
business performance and achieve sustainable growth in competitive markets.

2.5. Research Gap:

While existing research has provided valuable insights into the influence of entrepreneurial
networks on business performance, there is a need for further exploration of how specific
network characteristics, such as network structure and composition, impact different dimensions
of business performance. Additionally, more research is needed to understand how contextual
factors, such as industry dynamics and regulatory environments, shape the relationship between
entrepreneurial networks and business outcomes. Addressing these gaps can provide a more
nuanced understanding of the mechanisms through which entrepreneurial networks influence
business performance.
2.6 conceptual frame work
This section show the relationship between independent variables (entrepreneurial networks) and
dependent variable (business performance).

Network size

Business performance
Networks Diversity

Network Connectivity
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Chapter Introduction:

This is the section of the research document that provides an overview of the research topic, its
significance, and the objectives of the study. It sets the stage for the rest of the research
methodology chapter. (Source: Kothari, C. R. (2004). Research Methodology: Methods and
Techniques) Entrepreneurial networks play a critical role in shaping the performance and success
of businesses, particularly in the context of Dodoma city. This chapter provides an overview of
the research methodology employed to investigate the influences of entrepreneurial networks on
business performance in this specific geographical location. By examining the connections,
collaborations, and interactions within entrepreneurial networks in Dodoma city, this study aims
to uncover the mechanisms through which these networks impact the performance of businesses
operating in the area

3.2 Area of the Study:

Area of the Study refers to the specific geographical location or industry sector where the
research is focused. In this case, it is the area where entrepreneurial networks and business
performance are being studied. (Source: Creswell, J. W. (2014). Research Design: Qualitative,
Quantitative, and Mixed Methods Approaches) The study focuses on exploring how
entrepreneurial networks influence business performance in Dodoma city, Tanzania. By
concentrating on this specific geographical location, the research aims to provide insights into
the unique characteristics and dynamics of entrepreneurial networks in Dodoma city and their
implications for business outcomes in the region

3.3 Research Design:

Research Design refers to the overall plan or strategy that outlines how data will be collected and
analyzed to address the research questions or objectives. It includes decisions on data collection
methods, sampling techniques, and data analysis procedures. (Leedy, P. D., & Ormrod, J. E.
2014).

Research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure (Kothari,
2004). The researcher will apply a descriptive design because the study seeks to answer the why,
how and when of the problem under study. There are a number of advantages of descriptive
research, however the two main benefits of this research method is being able to use various
forms of data as well as incorporating human experience. It gives researchers the ability to look
at whatever they are studying in so many various aspects and can provide a bigger overview as
opposed to other forms of research.

Descriptive research involves field survey where the researcher goes to the population of interest
to ask certain issues about the problem under the study. Mugenda and Mugenda (2003) describes
descriptive research design as a systematic, empirical inquiring into which the researcher does
not have a direct control of independent variable as their manifestation has already occurred or
because the inherently cannot be manipulated. Inferences about relationships between variables
are made from concomitant variables.

The research design was a survey conducted on a sample of small and medium sized enterprises
(SMEs) within the Dodoma city market, Tanzania County. According to Owens (2002), survey
research designs has the advantage of uniqueness since information gathered is not available
from other sources, having unbiased representation of population of interest and standardization
of measurement as same information is collected from every respondent.

3.4 Research Approach:

Research Approach refers to the general strategy or perspective that guides how the research is
conducted. It can be qualitative, quantitative, or mixed methods, depending on the nature of the
research questions and objectives. (Creswell, J. W., & Creswell, J. D. 2017). The research
approach taken in this study is primarily exploratory and descriptive. By investigating the
influences of entrepreneurial networks on business performance in Dodoma city, the study aims
to generate knowledge that can inform future research and practical interventions aimed at
enhancing the effectiveness of these networks in the region
3.5 Population of the Study:
Population of the Study refers to the entire group of individuals or entities that the researcher is
interested in studying. In this case, it include all businesses or entrepreneurs within the chosen
area of study related to entrepreneurial networks and business performance. (Lewis, at al, 2016).
The population of the study comprises businesses operating in Dodoma city that are actively
engaged in entrepreneurial networks. The study focuses on businesses across various industries
and sectors within Dodoma city to capture a diverse range of experiences and perspectives
related to entrepreneurial networks and business performance.

The target population will consist of all the entrepreneurs in SMEs operating within the Dodoma
city. From the records of City Council of Dodoma, there are more than 106 registered business
operators in Dodoma city Market. The businesses in operation are mainly in Food (27), clothing
(53), beverages (6), services (10) and curio vendors (10).

category frequency
Food vendors 27
Clothing vendors 53
Beverages vendors 6
Services vendors 10
Curio vendors 10
Total 106
3.6 Sample Size and Sampling Techniques:

3.6.1 Sample Size

Sample Size refers to the number of participants or entities selected from the population to
represent it in the study. (Neuman, 2013).

According to Mugenda and Mugenda (2003), a sample of 10-30% is good enough if well chosen
and the elements in the sample are more than 30. This study will use proportionate sampling
technique to select a sample of 30% of the population. This gives a sample size of 47
respondents as indicated in the table 3.2 below. The sampling frame will include: food vending,
clothing, beverages, curio and services vendors. The sample will be as follows;

category frequenc Sample proportional Sample size

y
Food vendors 37 30% 11
Clothing vendors 63 30% 19
Beverages vendors 16 30% 5
Services vendors 20 30% 6
Curio vendors 20 30% 6
Total 156 47

3.6.2 Sampling Techniques

Sampling Techniques are methods used to select participants from the population in a systematic
way to ensure the sample is representative and generalizable. (Neuman, 2013).

To select the sample of entrepreneurs for our study, we employed a combination of probability
sampling techniques. The study applied proportionate sampling technique where 30% of the
population in each sampling frame was selected to participate in the study. For the exact
individuals to participate in the study, the researcher used simple random sampling technique as
it offers every member of the population an equal chance of being included in the sample.
3.7 Data Collection Tools:
Data Collection Tools refer to the instruments or methods used to gather data from participants
or sources for analysis. These tools can include surveys, interviews, observations, or secondary
data sources. (Creswell, J. W., & Creswell, J. D. 2017). In our study, we employed both primary
and secondary data collection methods to gather relevant information on the influences of
entrepreneurial networks on business performance in Dodoma City.

3.7.1. Primary Data Collection:

Questionnaire: We designed a structured questionnaire to collect data directly from the
entrepreneurs in Dodoma City. The questionnaire included both closed-ended and open-ended
questions related to entrepreneurial networks, business performance, and other relevant
variables. The survey was administered in person or through online platforms, depending on the
preferences of the participants.

Interviews: In addition to surveys, we conducted semi-structured interviews with a subset of

entrepreneurs to gain deeper insights into their experiences with entrepreneurial networks and
how it impacts their business performance. The interviews were audio-recorded with the consent
of the participants and transcribed for analysis.

3.7.2. Secondary Data Collection:

Literature Review: We conducted a comprehensive review of existing literature on
entrepreneurial networks, business performance, and related topics to provide a theoretical
framework for our study. This secondary data helped us understand the current state of research
in the field and identify gaps that our study could address.

Government Reports and Publications: We also utilized reports and publications from
government agencies, industry associations, and other organizations to gather information on the
business environment in Dodoma City, including economic indicators, industry trends, and
regulatory frameworks.
3.8 Data Analysis:
Data Analysis involves the process of examining and interpreting collected data to derive
meaningful insights and conclusions related to the research objectives. It includes organizing,
coding, and interpreting data using appropriate analytical techniques. (Miles, et al 2014).

The questionnaire was checked for completion and reliability of the data. The quantitative data
was then be coded and analyzed using descriptive statistics such as percentages and mean and
standard deviation. Descriptive statistics was used mainly to summarize the data. This included
percentages and frequencies. A Likert scale and the use of Statistical Package for Social Sciences
(SPSS version 17.0) were employed to aid in the coding, entry and analysis of the data obtained
through the questionnaires. Tables, Pie charts and other graphs were used as appropriate to
present the data collected for ease of understanding and analysis. Measures of central tendency
will be applied (mean, median, mode and percentages) for quantitative variables.

Pearson’s correlations analysis was be conducted at 95% confidence interval and 5% confidence
level 2-tailed to determine the relationship between the variables of entrepreneurial networks on
influencing the business performance of SMEs. If the relationship established is found to be
positive, then this will indicate that there is a correlation between the factors and the performance
of SMEs Dodoma city.

3.9 Validity and Reliability:

Validity refers to the extent to which a study accurately measures what it claims to measure,
while Reliability refers to the consistency and stability of results obtained from a study over time
or across different conditions. Ensuring validity and reliability enhances the credibility and
trustworthiness of research findings. (Yin, et al 2013). In our study, we took several measures to
enhance the validity and reliability of our research design, data collection methods, and analysis
techniques.

Data collection instrument was tested for accuracy and consistency. In assessing measurement
scales accuracy and consistency are usually associated with ‘validity’ and ‘reliability’
respectively (Hair et al., 2003). As for reliability, Cronbach alpha coefficient test was used.
Findings indicate that for social networks, strength of ties had Cronbach alpha of 0.954, density
had 0.897 and social networks marketing information had 0.966. As for the inter-firm networks,
strength of ties had Cronbach alpha of 0.948, density had 0.847 while inter-firm network
marketing information had 0.830. Given that Cronbach alpha coefficient is at least 0.8 for each
identified variable they are all considered to be very good and hence reliable (Hair, 2003).

As for validity, the current instrument went through several stages of screening (Royse, 1995;
Hair et al., 2003). Firstly, two colleagues involved in bachelor studies were consulted for
comments. Next the instrument was delivered to a panel of four experts who independently
assessed the instrument for standards. The instrument was then exposed and used in training four
research assistants. Before training was conducted, the trainees were asked to fill in the
questionnaire in a dummy venture of their own selection. They were asked to choose among the
four types of manufacturing firms under research, i.e. metal work, and shoe making, food
processing and wood work. They were then asked to present their results in front of others in the
researcher’s presence. Few problems in misconceiving some parts required further adjustment in
the instrument. The instrument was then exposed to the 10 judgmentally selected respondents in
a pilot survey. Some few questions were revised for clarity to avoid potential reliability and
validity problems

3.10 Ethical Considerations:

Ethical Considerations involve principles and guidelines that researchers must adhere to in order
to protect the rights, privacy, and well-being of participants involved in the study. These
considerations ensure that research is conducted ethically and responsibly. (Creswell, et al 2017).

According to Mugenda and Mugenda (2003) a researcher must confirm to the principle of
voluntary consent where the respondents willingly participate in research. Informed consent
should be based on the information regarding: the purpose of the research study, identification of
the researcher, any benefits that may be received. Mugenda (2008) notes that participation in
research is voluntary and subjects are at liberty to withdraw from the study at any time without
any consequences. The researcher was required to communicate this to the respondents before
the start of the study. The researcher through the trained assistants ensured that all respondents
fully understood all the details pertaining to the study. No respondent was forced to take part in
the study but this was done voluntarily.
According to Bryman and Bell (2007) plagiarism refers to passing off another person’s work as
if it were your own, by claiming credit for something that was done by someone else. It is taking
and using another person’s thoughts as if they were your own. Utmost care was taken to ensure
that all work borrowed from other scholars was acknowledged.
 CHAPTER FOUR

FINDINGS AND DISCUSSION

4.1 chapter introduction

This section basically presents the result of the study findings based on research questionnaires.
This section is subdivided into descriptive and Regression results.

4.1.1 Questionnaires Response Rate

The study targeted the 47 respondents as the sample size for the study. Of the 47 administered
questionnaires, 43 questionnaires were completed and returned giving a response rate of 91%
which is excellent in research. According to Mugenda and Mugenda (2003), above 70% is an
excellent response rate, 60% response rate is good while 30% is not viable.

Table 4.1.1Response rate

Frequency Percent
(%)
Respondent 43 91
Non respondent 4 9
Total 47 100

4.2 Demographic characteristics of the respondents

This section presents the results of the study findings based on the demographic characteristics of
the respondents:

4.2.1: Kind of business

The study sought to establish the kinds of business are involved in. The findings were shown in
the Table 4.
Table 4.2.1: Kind of business

Kind of business frequency Percent (%)

Food 13 30
Curio 11 26
Clothing 7 16
Beverage 8 19
Services 4 9
Total 43 100
From the findings shown above, 30% of the respondents are food business, 26% are in
curio business, 16% are in clothing business, 19% are in beverages business while 9% are
offering services. This shows that the respondents were drawn from various business types hence
more appropriate in finding out the influence of entrepreneurial networks on business
performance in the market. The various business types included in the study makes the study
more exhaustive in establishing the factors affecting performance of SMEs in Dodoma city.

4.2.2 Length of operation in the business

The study sought to establish the number of years the respondents have being in business.
The findings were indicated in the Table 4.3.

Table 4.2.2: Length of operation in the business

Length of business frequency Percent

(%)
Less than 2 years 7 16
3-5 years 10 23
5-8 years 19 44
9-11 years 4 9
Above 11years 3 7
Total 43 100
From the research findings 16% had being in operation for less than 2 years, 23% for
between 3-5 years, majority (44%) for between 5-8 years, 9% for between 9-11 years, and 7%
for more than 11 years. These findings show that the respondents had operated in the market for
different period ranging from less than 2 years to more than 11 years. These findings show that
the respondents had operated their business within the market for a long period hence are more
informed on the factors affecting SMEs performance.

4.3.3 Age of the respondents

The researcher further sought to establish the ages of the respondents. The findings were
indicated in the Table 4.4

Table 4.2.3: Age of the respondents

Age Frequency Percent (%)

Below 20 years 2 5
21=30 years 11 26
31-40 years 19 44
41-50 years 8 19
Above 50 years 3 7
Total 43 100
From the data findings, 5% of the respondents were below 20 years, 26% were between 21-
30 years, 44% were between 31-40 years, 19% were between 41-50 years and 7% were above 50
years. The age of the respondents was important as different age groups have different
challenges in operating their businesses. Young businessmen may not be having enough
experience and capital to grow their businesses while aged businessmen may be.

4.3.4 Highest Level of Education

The researcher sought to find out the respondents highest level of education. The data
findings were indicated in the
Table 4.2.4. Highest Level of Education

Highest Level of Education Frequency Percent (%)

Primary 10 23
Secondary 14 33
College 7 16
University 9 21
None 3 7
Total 43 100
From the findings, 33 % of respondents indicated that had secondary school as their
highest level of education, 21% said they were university graduates, 16 % of the respondents
were college graduates while only 7% had no formal education. These findings show that the
respondents had attained different levels of education. Education levels affect the management
levels hence the higher education level attained by the businessman the more it is assumed that
they can make better decisions to grow the business. This however may vary from one
businessman to another.

4.2.5 Gender
The study sought to establish the gender of the respondents. The research findings were
indicated in the Figure 4.2.5

Gender frequency Percent (%)

Male 19 44
Female 24 56
Total 43 100
Also consider the figure below

frequency

male
female
44% female
female
56%

From the findings above, the study established that most (56%) of the respondents were
female and that 44 % were male. These findings show that a majority of the respondents were
female. Female are more in the SMEs sector largely because of their limited access to capital.
Women have limited collateral and in addition they have to attend to other house chores which
leave them with limited time to do business. As such, they are limited in their operations to
SMEs.
4.3 presentation findings and discussions
Objective One: To determine the influence networks size on business performance
The study sought to determine the extent to which access to networks size affect the performance
of the business.

Factor Analysis

Following the successful tests on reliability and validity using Cornbracssh alpha and aKMO
coefficient results, factor analysis was done via the Principal Components Method (PCM)
method. The factors were extracted after the Kaiser Criterion in which Eigen value of 1 or
more signifies a common element. The entire Variance analysis shows that the 7 accounts on
networks size can be deducted into 1 factor.

As Table indicates, the total variance elucidated by extraction element is 41.83%.

Table: Structural Total Variance Explained

Extraction Sums of Squared

Component Initial Eigenvalues
Loadings

Total % of Cumulative Total % of Cumulative

Variance % Variance %
1 4.949 49.488 49.488 4.949 49.488 49.488
2 1.272 12.719 62.206
3 0.943 9.433 71.639
4 0.635 6.355 77.994
5 0.538 5.377 83.371
6 0.453 4.527 87.898
7 0.397 3.967 91.865
8 0.371 3.705 95.57
 9 0.267 2.674 98.244
10 0.176 1.756 100
Extraction Method: Principal Component Analysis.

On Table 4.8, the factor loadings for sub-constructs of network size are shown. The overall
statements drew coefficients of over 0.4, and therefore all of them were preserved for
analysis. A factor loading greater than or equal to 0.4 is regarded sufficient (Rahn, 2010;
Zandi, 2006). Black (2002) also who affirms that a 0.4 factor loading has viable factor
stability and can contribute to acceptable and desirable solutions.

Table: Factors loading for network size

Statement Component
Members of our organization belong to professional network 0.785
By being part of the professional network has improved the 0.805
organization’s overall performance
Our organization pay for its member’s annual subscription fee for 0.528
being members of the professional networks
Our organization uses social media personalities/ brand ambassadors 0.475
to sell our brands to the general public
Our enterprise formulates policies relating to networking 0.766
The internal policies and guidelines of our organization are 0.567
effectively made clear to all employees
Our organization’s management is open to diverse ideas 0.501

Extraction Method: Principal Component Analysis.

Descriptive Analysis

The study invested on identifying the professional body the enterprise employees are
affiliated to; 38.5% indicated that they were affiliated to marketing society of Tanzania while
16.6% were members of CPS (K) and16.1percentage were members of Business network
international as shown in Table

Table; network size Affiliated to

network size Frequency Percent

Marketing Society of Tanzania 79 38.5

Business network international 33 16.1
CPS (K) 34 16.6
ICPAK 11 5.4
Others Specify 48 23.4
Total 205 100

Results are in support of other research, which explains the way professional services are
categorized to assist businesspersons organized their businesses as per the legal settlements in
the venture municipal (Suchman, Steward, & Westfall, 2001). Employing a case study, they
showed the significance of Silicon Valley law organizations towards standardizing
entrepreneurial community services besides the way entrepreneurship relies mostly on
convention as it does on innovation. It was definite from the findings that majority of
respondents were in professional bodies and they were aware of issues associated with
professional bodies and networking. This implies that the respondents had strong networks
and connections with other enterprises.

The study sought to find out what causes their enterprise’s employees not to subscribe to the
professional bodies. Figure 4.5 demonstrates that 48.3% of all respondents were not aware of
them while 31.7% indicated costs and 17.6% indicated lack of interest. Only 2.4 % of the
respondents indicated other reasons for not subscribing to professional bodies other than cost and
being unaware.

The results shown on Figure 4.5 agree with those of Kiriinya and Kirimi (2016), which found
out that in Tanzania, network marketing; innovative marketing and work of mouth
communication were the most significant factors used by medium sized enterprises to
compensate for any disadvantages experienced because of their size and nature of their
business. This was because these were less costly to join as compared to the professional
bodies. As per the findings, more should be implemented so that enterprises and employees
can be made aware of the benefits that are associated to joining professional bodies and the
kind of networking one can benefit from professional bodies. The first study objective
involved the determining of whether network size influence the business performance of
medium sized Enterprises. The findings are presented in Table 4.10. From the results it was
clear that 31.7% of the total respondents mutually concurred that members of their
organization belong to professional network, while 28.3% agreed that by being part of the
professional network has improved the organization’s overall performance and
70.2% disagreed that their organization pay for its member’s annual subscription fee for being
members of the professional networks.

Moreover, 22.5% of all respondents were in agreement that their organizations uses social
media personalities/ brand ambassadors to sell their brands to the general public, 37.1%
agreed that their enterprise formulates policies relating to networking and 67.9% agreed that
the internal policies and guidelines of their organization are effectively made clear to all
employees. Finally, 72.7% of the respondents agreed that their organization’s management
was open to diverse ideas.

Table: networks size Descriptive Statistics

Statement strongly disagree neither Agree strongl Mea

disagree agree y n
nor agree
disagree
Members of our 3.4% 6.3% 58.5% 22.9% 8.8% 3.27
organization belong to
professional network
By being part of
the
professional network has 2.4% 9.8% 59.5% 21.5% 6.8% 3.2
improved the
organization’s overall
performance
Our organization pay for
its
member’s annual 36.1% 34.1% 17.1% 8.3% 4.4% 2.11
subscription fee for
being members of the
professional networks
Our organization uses
social
media 5.4% 16.1% 56.1% 21.0% 1.5% 2.97
personalities/
brand ambassadors
to sell our brands to the
 general public
Our enterprise 1.5% 6.8% 54.6% 33.2% 3.9% 3.31
formulates policies
relating to networking
The internal policies and
guidelines of our 1.0% 2.0% 29.3% 45.9% 22.0% 3.86
organization are
effectively made clear to
all employees
Our organization’s
management is open to 2.9% 2.9% 21.5% 35.1% 37.6% 4.01
diverse ideas
Average 7.5% 11.1% 42.4% 26.8% 12.1% 3.25

The results of the study revealed that people who can successfully linked network size acquire
more advantages. The study outcomes show coherency with Podolny & Baron, (1997) who
studied effect of network size on promotion of senior managers and concluded that senior
executives who bridge network size have a higher likelihood of being promoted promptly.
Another study carried out on Loan officers and networks by Mizruchi and Sterns (2001)
concluded that bridge network size were presented as more probable to close a deal. This
concurs with the findings of the study.

Table: network size Normality Test

network size Statistic Std. Error

Skewness -0.003 0.17
Kurtosis 1.826 0.338
Relationship between networks size and business Performance

Regression analysis was done in order to empirically find out if networks size were an
essential factor of business performance of the Tanzanian-based medium sized enterprises.
Table regression results signify that the regression’s fit alignment for the regression of the
networks size alongside the business performance was satisfactory. A 0.593-squared value of
R of signifies that 59.3% of total variations in the business performance are expounded by the
variations in network size.

Table: Model Summary for networks size

Indicator Coefficient
R 0.77
R Square 0.593
Adjusted R Square 0.591
Std. Error of the Estimate 0.38961

Further, F-test was established, testing the null hypothesis and it was found that network size
have no significant influence on financial performance of medium sized enterprises in
Tanzania. Determination of the existence of regression relationship the network size and
financial performance was done via analysis of variance (ANOVA). Table 4.15,represents the
ANOVA test showing that the significance of F-statistic 0.000 was below 0.05 which
indicates the null hypothesis is therefore rejected and thus concludes that there is an important
connection between network size as well as the financial performance of medium sized
enterprises. The findings indicate that network size were statistically significant towards
clarifying more about the financial performance of medium sized enterprises in Dodoma.
Results are inconsistent with Ahuja (2000) who found that a network richly endowed with
network size is usually less effective compared to innovations producing networks, for
instance where the company comprise of a broader network for generating innovations, which
is the case for firms having vast network of secondary ties.

Table: ANOVA for networks size

Indicator Sum of Squares df Mean Square F Sig.

Regression 44.971 1 44.971 296.269 0.000
Residual 30.814 203 0.152
Total 75.785 204

The intercept (α) and the regression coefficients (β), and the importance of the total model’s
coefficients were verified via t-test testing the null hypothesis of the coefficient as zero,
therefore testing significance of the regression correlation between business performance and
network size. The null hypothesis indicate that, β (beta) = 0, (implying lack of an association
between the variables). Findings regarding the beta coefficient of the resultant model as on
Table indicates that α = 1.347, a constant, is significantly dissimilar from 0, because p- value
= 0.000 is below 0.05. The coefficient β = 0.858 is significantly distinct from 0 with a
pvalue=0.000 and is evidently below 0.05.
This indicates that the null hypothesis β1=0 has been rejected while the alternate hypothesis
β1≠0has been held suggesting that the model of, Y=1.347+0.858 (network size) + e, is
observed as significantly appropriate. The model firm, business performance= α + β (network
size) is consistent as indicated by the above test. This was tested at 5% significance level. The
results show that network size contribute importantly to the model because gradient and the
constant is the pvalue is below 0.05. These outcomes suggest that a sole positive unit
alteration in network size efficiency contribution to a transformation in business performance
at the 85.8% rate. Therefore, it ratifies that there is a positive linear relationship between
business performance and network size. The following is the fitted equation:

Y= 1.347 + 0.858X1+ e

Table Coefficients of networks size

 Variable Beta Std. Error T Sig.
Constant 1.347 0.165 8.147 0.000
network size 0.858 0.05 17.212 0.000

The outcomes of the study are in line with Batjargal (2012) who conducted a research through
telephone interviews on 159 respondents in China and Russia on effects of network size on
new venture growth and found out that excellent entrepreneurs have a higher likelihood of
conserving their networks while the less prosperous ones have a likelihood of advancing their
individual networks.

Object two network diversity and business performance

The study sought to determine the extent to which network diversity affect the performance of
the business. The data findings were indicated in the table

Network diversity and performance of business

Statement Frequency Percent

Very great extent 9 21%
great extent 4 9%
Moderate extent 18 42%
little extent 7 16%
Very little extent 5 2%
Total 43 100%

The findings indicated that majority 42 % of respondents indicated that, managerial experience
affected the businesses to a moderate extent, 21% to a very great extent, 16 % to a little extent
12 % to a very little extent and 9% to a great extent. Managerial experience is important in
guiding the path which an organization is to follow in order to arrive at the designated goal.
Managers control that acts of other staff and guide them to ensure that they build synergy for
the attainment of organizational goals. Managerial experience among SMEs is important as it
will influence the manner in which the SMEs operation hence how it is able to interact with the
environment. Through better and experienced management, an organization is able to access
financial assistance as the financial and other recorded requested by lenders may be easily
availed. Management is therefore necessary to enable group or business goals to be
accomplished through the functions of planning, staffing, directing, controlling activities,
coordination and directing (Bamback and Lawyer (1979).

Object three how network conectivity affect business performance

The study sought to determine how network connectivity affect business performance. The
data findings were indicated in the table

Table: network density

network conectivity Frequency Percent

industrial associated 14 33
Networking event and conference 19 44
Business incubator and accelerator 7 16
Online platform and community 1 2
Customer networking 2 5
Total 43 100
The findings indicated that most respondents (44%) indicated that how network connectivity
affect the performance of the business to a great extent, 33% to a very great extent,16% to a
moderate extent 2% to a little extent and 5% to a very little extent. network connectivity is an
important element for all businesses regardless of size. For the SMEs surveyed in this study,
network connectivity especially concerning market performance patterns and trends are
important in the preparation of budgets that are to govern their operations.

Correlation Analysis of the dependent and the independent variables

The data presented before on networks size, network diversity and network density were
computed into single variables per factor by obtaining the averages of each factor. Pearson’s
correlations analysis was then conducted at 95% confidence interval and 5% confidence level 2-
tailed to establish the amount of correlation, direction and significance. Table below indicates
the correlation between factors (access to information, networks size, network diversity and
network density and business performance of SMEs. According to the table, there is a positive
relationship between financial performance of SMEs and access to information, access to
finance, technological input payment system and availability of managerial experience of
magnitude 0.132, 0.066, 0.238 and 0.362 respectively. However, the positive relationships were
very low as they lied below a threshold of 0.5 which might be due to the ordinal nature of the
data collected since the magnitude of the respective factors could not be established.

Coefficients

Model Unstandardized Standardized

Dependent variables Coefficients Coefficients
B Std. Error Beta t Sig.
1 (Constant) 1.923 .082 1.602 .121
Network size .453 .232 .711 7.937 .002
Networks diversity, .879 .093 .292 3.678 .001
Network connectivity .755 .741 .094 .092 .002

a. Dependent Variable: business performance of SMEs

The established regression equation by the study was

Y = 1.923+ 0. 453 X1 + 0. 879 X2 + 0. 532 X3

From the above regression model, networks size, network diversity and network density,
financial performance of SMEs in Dodoma would be 1.923. It is established that a unit increase
in networks size would cause an increase in business performance of SMEs by a factor of 0. 453,
a unit increase in networks size would cause an increase in business performance of SMEs by a
factor of 0.879, also a unit increase in technological input payment system would cause an
increase in business performance of SMEs by a factor of 0.532 while a unit increase in
availability of network size would cause an increase in business performance of SMEs by a
factor of 0.755. This infers that there is a positive relationship between business performance of
SMEs with networks size, network diversity and network connectivity
Table: Model Summary

Std. Error of the

Model R R Square adjusted R Square Estimate

.875(a) 0.766 .761 .21232

a. Predictors: (Constant), networks size, network diversity and network connectivity

Adjusted R2 is called the coefficient of determination and tells us how the business performance
of SMEs was affected by networks size, network diversity and network connectivity. From Table
4.22 above, the value of adjusted R 2 is 0.761. This implies that, there was a variation of 76.6% in
business performance of SMEs networks size, network diversity and network connectivity. The
23.9% remaining implies that there are other factors that affect the performance of SMEs in
Dodoma city.
 CHAPTER FIVE

CONCLUSION AND RECOMMENDATIONS

5.1 Introduction
The chapter presents a summary, conclusions and recommendations on the specific factors
affecting the performance of. Based on the findings in chapter four, the study gives a summary,
recommendations and suggestions for further research. The recommendations are based on the
objective of the study.

5.2.1 Key Objective 1

To determine the influence of network size on the business performance inn Dodoma city.

The study’s first objective was to determine the influence of network size on the business
performance In Dodoma City. From the study outcomes, it was confirmed that network size
were a key driver of business performance of medium sized enterprises in Dodoma city. This
was demonstrated by the respondents’ responses who were in agreement that members of
their organization belonged to professional network, by being part of the professional network
has improved the organization’s overall performance, their organization used social media
personalities/ brand ambassadors to sell their brands to the internal guidelines and policies
and general public and guidelines of their organization are effectively made clear to all
employees. Correlation and regression analysis findings demonstrated that there was a
significant and positive relationship between business performance and network size. The
outcome simply shows that positive change in network size efficiency led to a modification in
business performance at 85.8% rate.
5.2.2 Key objective 2
To determine the influence of Network Diversity on access business performance in
Dodoma city

The second objective of this study was to evaluate the influence of Network Diversity on
access business performance in Dodoma city. The study findings indicated that network
diversity influenced business performance by their organization’s contacts giving them access
to important networks, the individuals they interact with while networking are generally
honest and truthful and providing a platform for their organization to interact with many other
firms and individuals in the market. In addition, the study findings indicated that the network
members like to spend time together outside work, the firms they interact with tend to deliver
on promises and commitments they made and the enterprises connected with the industry
through marketing officers. The respondents also asserted that the enterprises accessed
linkages through trade fairs, invitations to attend workshops and conferences, cocktails to
learn and interact and the enterprise linkages provided access to other networks that would be
difficult to penetrate. Correlation and regression analysis outcomes showed that there existed
a significant and positive relationship between network diversity and business performance.
The outcomes of the study suggest that a single positive unit modification in network
diversity effectiveness contributed to an alteration in business performance at 91.8% rate.

5.2.3 Key Objective 3

To investigate the influence of Network Connectivity on the business performance of
Medium sized enterprises in in Dodoma city

The third objective of this study was to investigate the influence of network Connectivity on
business performance. The findings of the study indicated that network connectivity
influenced business performance of medium sized enterprises in Dodoma. This was
demonstrated by the respondents’ responses who agreed that close interconnections within the
network facilitated business operations, their firms believed in having suitable resource
partners and their firms had a corporate network with other firms in the same industry.
Additionally, the study findings indicated that their employees interacted freely with
colleagues in other firms, networking activities were well organized in the firms, the
enterprises had links with many other firms in the surrounding and he firms refer customers to
others in case they do not offer product or service they are seeking. Correlation and regression
analysis results demonstrated that there existed a significant and positive relationship between
network connectivity and business performance. The outcomes suggest that a single positive
unit alteration in network structures efficacy led to a modification in business performance at
89.8% rate.

5.3 Conclusions
The objectives of the study were tested and the results indicated that all the independent
variables that were under study that is structural size, network diversity, and network
conectivity had a positive significant influence on the business performance of the medium
sized enterprises in Dodoma city.

First, according to outcomes of the study, there is a possibility of concluding that medium
sized enterprises performance variances across enterprises can be expounded, at least partly,
by the degree to which companies enjoy auspicious access to external capabilities and
resources created by other market players. Since network size were a key driver of business
performance of medium sized enterprises in Dodoma city, the study concludes that structural
size were statistically significant in explaining on the business performance of medium sized
enterprises. The study concludes that a person can be constrained in a network if they have
very limited contacts; has associates closely linked with each another; or parts with
information indirectly through a main contact. Therefore, firms, which strategically utilize
influencers to span network size, can generate brand equity more competently.

Secondly, since network diversity was a key influencer of the business performance in
medium size enterprises, the study comes to a settlement that in expounding on business
performance of medium sized enterprises, network diversity proved statistically significant.
This implies that having a varied personal network is related to significant health advantages,
for instance in information flows and access to resources. Because businesspersons with more
varied personal networks have a high likelihood of identifying network diversity, and
innovative opportunities, and therefore more precisely important for developing mid-sized
enterprises.

Lastly from the study it can be concluded that enterprises become entrenched in various forms
of network structure since they pursue varied competitive approaches. As businesses elevated
the notch of advantage-generating propensity, they inclined to often take in new associates
into their coalition network and therefore constantly generated new network connectivity.
Alternatively, when enterprises display robust advantage-improving tendency, they are
inclined to arouse superior collaborative activities between the network partners and therefore
create compact network structure. Notwithstanding the dynamic and frequent development of
the entire alliance network, companies inhabit steady positions within their network structure
since they track recurring forms of strategic behavior. Nevertheless, the study discovered that
such propensities of companies are not comprehensively valuable for all companies. It can
thus be settled that businesses with larger advantage-generating or advantage-improving
capacities could gain more from solid network structure, while those with inferior abilities are
better off if they form coalition with enterprises from distant network groups, and hence
forming a network connectivity endowed with comprehensive network size.

In respect to the dependent variable that is business performance, the following was
concluded: increased enterprise profitability of the medium sized enterprises took the lead
followed by financial leverage, then stock equity returns. However, all the other constructs
were significant with a mean of above 4.0 except for our shareholders are happy with our
policy on dividends which had a mean score of 3.68.The performance parameters used in the
study all showed gradual increase, sales increase was top on the list with a mean of 3.3 and a
gradual increase to a peak of 3.73 in 2015,second was increased profits with a mean of 3.26
and a gradual increase to a peak of 3.93 in 2015,market share was third with a mean score of
3.25 and a gradual increase to a peak of 3.71 in 2015,fourth was return on investment with a
mean score of 3.15 and a gradual increase to a peak of 3.77 in 2015 and finally assets growth
which had a mean score of 3.02 and a gradual increase to a peak of 3.48 in 2015.

The findings demonstrate that entrepreneurial networks can be used to mobilize resources,
information, relationships, contacts, linkages, interactions, partnership opportunities and
professional networks in order to enhance business performance of medium enterprises in
Dodoma. Undoubtedly, entrepreneurial networks have contributed toward the business
performance of medium sized enterprises in Dodoma. Moreover, the findings enhance the
social capital theory, social network theory and structural holes theory by demonstrating that
the entrepreneurial networks have significant positive relationship with business performance.
Therefore, the findings lay emphasis on the importance of elements of entrepreneurial
networks, which comprises of network size, network density, network structure, network
connectivity and network centrality in influencing business performance in Dodoma city.

5.4 Contribution of the Study to Theory/ Existing Knowledge

The study established a conceptual framework for sustaining future exploration activities on
the influence of entrepreneurial networks on the business performance. The study effectively
tested hypothesis linked to the conceptual framework identified in chapter two. According on
the research outcomes, it was established that the five entrepreneurial networks variables
greatly influenced the business performance of medium sized enterprises in Dodoma city.
This research has contributed to the current knowledge stock in the literature of influence of
entrepreneurial networks on the business performance of medium sized enterprises. The study
laid emphasis on the extent to which network size, network density, network structure,
network size and network connectivity influence the business performance of medium sized
enterprises. The study noted that key advantages of networks for the business process is the
access they offer to advice and information, therefore the dependence on networks is not
inhibited to the initial stage businesspersons continue to depend on networks for problem
solving, advice, business information, and advice with some associates availing multiple
resources.

The findings of the study may be connected to the Resource based theory .The theory
indicates that an organization’s competitive advantage and subsequent performance originates
from the resources and capabilities it controls. The theory posits that the way for an
organization to be competitive is invest in resources. This theory was applicable in this study
as it established what resources medium sized enterprises in Dodoma require to carry out their
day-to-day operations in their network frameworks and its influence on financial
performance. This theory informed the general study objectives.
The results of this study can be linked to social network theory in that it portrayed the relevance
to the study, it helped to illuminate the process by which entrepreneurs in networking groups
increase the amount of referrals they receive and thereby increase firm performance. The study
proved connections and relationships among medium sized enterprises in Dodoma city develop a
social structure through networking which determine the business performance of enterprises and
influence on sustainability in the long run. The scrutiny of influence of business network on
business performance revealed that business networking is a crucial aspect in the financial
performance of medium sized enterprises in Dodoma. However, it was noted that networking
and developing relationships are experienced –based and time consuming

5.5 Recommendations
Programs specifically be designed by the government in conjunction with the private sector
for building connections among entrepreneurs from the same sector and linking them to a
broader business community. For instance medium-sized enterprises be encouraged to
develop policies that bring together firms in similar business in a professional network to
enable them share information and support each other. Programs designed to deliver advice,
training and consultancy among medium sized enterprises should be tailored in such a way
that will build networks and enhance the network density alongside the main service.

Entrepreneurs and owner managers of medium sized enterprises should lobby for support
from the government to leverage community partners and communication channels to
promote networking among themselves. Stakeholders of medium sized enterprises should
develop policies to ensure managers of medium sized enterprises are trained in the specific
needs and challenges of different target groups and on how to set clearly defined objectives
for entrepreneurial networking depending on their needs.

Entrepreneurial networking and networks have attached resource implications. Networks and
entrepreneurial networking have resource implications. Therefore, it is essential to classify and
assess the resources, which are important to the SMEs financial performance and as while
advance and implement business approaches to build on those assets to improve the
probability of greater financial performance. Medium sized enterprises ought to identify
means of alleviating or reducing costs engaged in generating network structures.
5.6 limitations of the study
The first limitation experienced was that some of the respondents were unwilling to fill the
questionnaire due to tight work schedule, others overlooked the significance of the study and
while others did not totally return the questionnaires. The researcher booked appointments to
meet the managers and distribute questionnaires, those who were so busy to fill it at the time
it was issued were allowed to remain with the questionnaire to fill it at their convenient time
and was picked at a preferred later date and several follow up were made to get the
questionnaires back. The researcher had to explain the significance of the study and also
emphasized that the information collected would be handled for the purpose of this study. For
the questionnaires that were not returned even after numerous follow up, the researcher
analyzed the data without them thus the non-response rate of 20%

The second limitation was that the respondents were unwilling to give information due to fear
of the unknown and in that the information collected may be used to intimidate them or print
a harmful image about them or their respective companies. This was mitigated by a letter of
introduction from the University. which assured the respondents of the academic purpose of
the study and that information collected would be treated with maximum confidentiality.

The third limitation is that the managers of the selected medium sized enterprises were not
willing to disclose their profits, sales turnover or any financial information in actual figures
that this study needed to obtain information on financial performance. To mitigate this
limitation, the researcher opted to use indirect methods to collect data on financial
performance. The respondents were asked to indicate the percentage change of profit, sales
growth, return on investment market share and assets at a given period. These were the
parameters used to measure financial performance of medium sized enterprises in the study.
They were also requested to give their perceptions on the financial performance of the
enterprises they worked with by use of specific Likert scale psychometric constructs that were
provided in the questionnaire.
5.7 suggestion of area for further research
The unit of analysis for the survey was within the firm’s level but an individual plays a
central role. Networking capacity at the personal level can thus be a productive space for
deeper research.
The current study used cross sectional methodology yet in the context of entrepreneurial
networks as well as its influence on business performance, time’s contribution is critical.
Therefore, another study can be carried out using longitudinal methodology and to
establish the influence of entrepreneurial networks at each stage of the enterprise.
The study methodology targeted Tanzanian-based medium sized enterprises to establish
the influence of entrepreneurial networks on business performance. The study variables
were network size, network density, network diversity, network size, and network
connectivity. Representing a future path to research, it necessitates conducting a study on
the influence entrepreneurial networks on business performance but using different
variables.
Data collection was done from various forms of enterprises. This makes it problematic to
explicitly govern the variables that influence the business performance of each sector.
Further studies per sector can provide more insights of the specific entrepreneurial
networks influencing business performance of each sector. A similar study can also be
conducted among specific type of enterprises for instance manufacturing, health,
technology and construction in Dodoma city. To find out if the findings will hold true.
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 APPENDICES

APPENDIX I: LETTER OF INTRODUCTION OF RESEARCHER TO RESPONDENT

Ref: letter of introduction of researcher to respondent

Sir/Madam,

My name is Shukuru Silla Ryoba, a student of the University of Dodoma (UDOM). I am

conducting and academic research on the influences of entrepreneurial networks on business
performance in Dodoma city.

I am therefore kindly requesting your cooperation to enable me gather the necessary

information. I assure you that your views will be treated with confidentiality and the research
will not be used for nay financial gains. This survey is completely voluntary and anonymous. If
there is any reason to terminate, feel free to leave however please note that your participation to
this survey will be much appreciated. I therefore request your participation in this survey by
filling out the questionnaire attached to this personally and honestly within a week after you
receive it. The research assistant will collect the questionnaire after one week. .

Kindly remember that this study is useful to the society as it promotes awareness-raising and
advocacy.

Yours sincerely,

Shukuru Silla Ryoba

 Appendix II: Questionnaire

This questionnaire is meant to gather information regarding the influences of entrepreneurial

network on business performance in Dodoma city.

CONFIDENTIALITY CLAUSE:

The responses you provide will be used for academic purposes and will be strictly confidential.

PART A: GENERAL INFORMATION

1. Gender

a) Male ( )

b) Female ( )

2. Highest level of education

a) Secondary level ( )

b) College level ( )

c) University level ( )

d) Post graduate level ( )

3. Years worked in the enterprise

a) Less than 2 years ( )

b) 3 to 5 years ( )

c) Over 5 years ( )

4. Please indicate your age

 a) Below 20 years ( ) b) between 21-30 years ( )

c) Between 31-40 years ( ) d) between 41-50 years ( )

e) Above 50 years ( )

PART B: NETWORK SIZE

Tick the professional body your employees are affiliated to.

Marketing Society of Tanzania ( ) Business network international ( )

ICPAK ( )

CPS (K) ( )

Others Specify----------------------------

What causes your enterprise’s employees not to subscribe to the professional bodies?

Costs ( ) Not aware about them ( ) Lack of interest ( ) others specify--

----------)

F) What encourages your enterprise to formulate policies relating to networking?

Please indicate your agreement or otherwise with the following statements using the
following likert scale. Key: 1=strongly disagree, 2= disagree; 3=neither agree nor
disagree; 4= agree; 5= strongly agree

N Statements

SD

SA
D

A
o
1 Members of our organization belong to professional
network
2 By being part of the professional network has improved
the organization’s overall performance
3 Our organization pay for its member’s annual subscription
fee for being members of the professional networks
4 Our organization uses social media personalities/ brand
ambassadors to sell our brands to the general public
5 Our enterprise formulates policies relating to networking
6 The internal policies and guidelines of our organization
are effectively made clear to all employees
7 Our organization’s management is open to diverse ideas

Part C: Networks diversity

How does the enterprise benefit from these networks?

Access to new markets ( ) access to suppliers ( ) access to distributors ( )

Others specify………………………………….

c) How does your enterprise access linkages? Trade fairs ( ) cocktails ( )

workshops ( ) marketing officer ( ) others

specify………………………………..
Please indicate your agreement or otherwise with the following statements using the
following likert scale. Key: 1=strongly disagree, 2= disagree; 3=3=neither Agree nor
disagree; 4= agree; 5= strongly agree

No Statements S D N A S

D
1 Our organization’s contacts give us access to
important networks
2 Individuals we interact with while
networking are generally honest and truthful
3 Our organization interacts with many other
firms and individuals in the market.
4 Network members like to spend time

together outside work

5 Firms we interact with tend to deliver on
promises and commitments they make
6 Our enterprises connects with the industry
through marketing officers
7 Our enterprises access linkages through trade
fairs
8 Through our network we get invitations to
attend workshops and conferences
9 Our employees attend cocktails to learn and
interact
10 Our enterprise linkages provide access to
other networks that would be difficult to
penetrate?
Part D: Network connectivity

4(a) Does your enterprise have partners?

Yes ( ) No ( )

(b)If yes in 4 (a) how does the enterprise benefit from these partners?

Access to information ( ) provides goods on credit ( ) links to markets ( )

Financial support ( ) others specify…………………………………

c) If No 4 (a) give reasons……………………………………………………………

Please indicate your agreement or otherwise with the following statements using the
following likert scale. Key: 1=strongly disagree, 2= disagree; 3=3=neither Agree nor
disagree; 4= agree; 5= strongly agree

No Statements SD D N A SA
Close interconnections within the network
1
facilitates business operations
Our firm believes in having suitable
2
resource partners
Our firm has a corporate network with
3
other firms in the same industry
Our employees interact freely with
4
colleagues in other firms
Networking activities are well organized in
5
the firm
We get stocks from members of our
6
network in case of a shortage
Our enterprise has links with many other
7
firms in the surrounding

8 We refer customers to others in case we

don’t offer product or service they are
seeking

Thank for your time and answers