Resource access mechanisms in networks and SME survival in Ghana

Abstract

Purpose The study aims to determine the resource access mechanism in inter-firm networks that aids SME survival in Ghana. Design/methodology/approach The authors collect census data on a poultry cluster in Ghana and construct a directed network. The network is used to extract direct and indirect ties both incoming and outgoing, as well as estimate the structural holes of the actors. These variables are used to estimate for survival of SMEs after a one-year period using a binary logit model. Findings The study finds that out-indirect ties and structural hole have a significant influence on SME survival. This works through the global influence and the vision advantage that these positions and ties offer the SMEs. Originality/value The study offers SMEs a choice of whom to collaborate with for information (resources) in the form of outgoing and incoming ties at both the global and local level.