Albert Danso

Regulatory environment, environmental dynamism, political ties, and performance: Study of entrepreneurial firms in a developing economy

Purpose – Regulatory environment, environmental dynamism, and political ties are typically modelled as separate antecedents of firm performance. However, the boundary conditions for such models are less examined in a developing country context where regulatory environments have been argued to be weak. Accordingly, drawing on institutional and social capital theories, the purpose of this paper is to examine the interrelationship between regulatory environment, political ties, environmental dynamism, and firm performance. Design/methodology/approach – The study uses primary data gathered from 372 entrepreneurial firms in Nigeria, a Sub-Saharan African country. Findings – The findings of the paper suggest that that regulatory environment is negatively related to firm performance. However, political ties and environmental dynamism moderate the regulatory environment-firm performance relationship such that such relationship is positive and significant. Research limitations/implications – First, the study provi...

Entrepreneurs’ Optimism, Cognitive Style and Persistence

Purpose – The purpose of this paper is to examine the moderating effects of cognitive style dimensions on the relationship between entrepreneurs’ optimism and persistence. Design/methodology/approach – This theoretically derived research model is empirically validated using survey data from 198 small and medium-sized enterprises in Ghana. Findings – The study’s empirical findings are that the relationship between entrepreneurs’ optimism and entrepreneurial persistence is enhanced at higher levels of cognitive planning and creating styles. Somewhat interestingly, cognitive knowing style negatively moderates the relationship between optimism and entrepreneurial persistence. Research limitations/implications – The cross-sectional design of the study does not permit causal inferences to be made regarding the variables examined. Future studies may use longitudinal design to examine the causal links of the variables. Practical implications – The results of this paper can assist entrepreneurs and policy-makers i...

The moderating influence of financial literacy on the relationship between access to finance and firm growth in Ghana

Abstract The literature on access to finance has confirmed a positive relationship between access to finance and firm growth. Yet the boundary conditions for such linkage are less examined in the context of developing economies. This study draws on resource-based view to introduce financial literacy as a moderator of the relationship between access to finance and firm growth. This theoretically derived research model is empirically tested using survey data from 201 small and medium-sized enterprises in Ghana. Our empirical findings suggest that financial literacy positively enhances the access to finance-firm growth relationship.

The financing behaviour of firms and financial crisis

Purpose - – The purpose of this paper is to contribute to the capital structure literature by examining the determinants of capital structure from the context of South Africa and to provide evidence of the effects of the 2007/2008 global financial crisis on firm-level determinants of debt-equity choice. Design/methodology/approach - – This paper begins by embarking on an extensive review of literature on extant empirical research on capital structure. The panel econometric technique is further adopted to examine firm-level determinants of capital structure and also the impact of 2007/2008 financial crisis. Findings - – The findings of the paper suggest that theories of capital structure underpinning debt-equity choice of firms in developed economies are also applicable in the South African context. The authors also find a strong evidence of the effects of the financial crisis on the capital structure of firms in South Africa. Practical implications - – This paper serves as springboard on which further research can be grounded and also highlights the interaction between the South African economy and the global economy. Originality/value - – The paper provides a fresh evidence on the determinants of capital structure from the Sub-Saharan African context and to the authors’ knowledge, this is the first paper that examines the effects of the 2007/2008 financial crisis on capital structure of firms in South Africa.

Risk-taking Propensity, Managerial Network Ties and Firm Performance in an Emerging Economy

The objective of the study was to examine the effect of entrepreneurs’ risk-taking propensity on firm performance and the moderating role of managerial network ties on this relationship in a sub-Saharan economy. This theoretically derived research model is empirically validated using survey data from 298 small and medium-sized enterprises (SMEs) in Ghana. The study’s empirical findings are that high levels of entrepreneurs’ risk-taking propensity enhance firm performance. This relationship is amplified when entrepreneurs cultivate stronger business, political and community network ties.

Entrepreneurial alertness and new venture performance: Facilitating roles of networking capability:

An ability to act upon an entrepreneurial opportunity is a major driver of new venture success. However, scholarly knowledge is limited on how and when entrepreneur alertness to entrepreneurial opportunities drives new venture success. This article addresses this gap arguing that variations in new venture performance are a function of levels of entrepreneurial alertness and networking capabilities. Using primary data gathered from 203 new ventures operating in a sub-Saharan African economy, Ghana, we find that increases in the levels of entrepreneurial alertness are related to increases in new venture performance. Additionally, we find that, under conditions of increased use of social and business networking capabilities, the potency of entrepreneurial alertness as a driver of new venture success is amplified. Theoretical, managerial and policy implications of these findings are discussed.

Institutional outlook of the entrepreneurial climate in Ghana

Purpose - – Previous scholarly studies on institutions tend to create a sombre picture of institutions by ignoring to examine the antecedents of formal and informal institutions. The purpose of this paper is to overcome this limitation by proposing a conceptual framework of the antecedents of formal and informal institutions of entrepreneurial climate in a less developed market setting. Design/methodology/approach - – This study builds on a comprehensive survey of the literature on institutions by using a synthesis thematic methodology to identified key scholarly studies which have been published in previous theoretical and empirical studies and proposes a conceptual framework of the role of formal and informal institutions in defining entrepreneurial climate in a developing economy’s context. Findings - – The findings of the paper suggest that political factors and economic factors define formal institutions whilst socio-cultural factors define informal institutions. These factors rooted in political, economic and socio-cultural factors have a major influence on the rate and nature of entrepreneurial activity in a developing country setting. Practical implications - – This paper contributes to the literature on entrepreneurship and intuitional theory by focusing on the antecedents of formal and informal institutional factors that shape entrepreneurial climate in Ghana. Originality/value - – To the authors’ knowledge, this is the first review that explores the nature of entrepreneurial climate and proposes a conceptual framework of the role of formal and informal institutions in defining entrepreneurial climate in Ghana.

Constructivism in Mathematics Classrooms:Listening to Ghanaian Teachers’ and Students’ Views

ABSTRACT One of the challenges of implementing a new curriculum is how to bridge the gap between the underlining principles of the curriculum and the cultural and social orientations of the society which includes teachers and students. This article reports on a study that explored how the cultural and social orientations of teachers and students can influence the implementation of a constructivist curriculum in mathematics classrooms. The data for the study came from 250 students and 41 mathematics teachers, using questionnaires, observations, and interviews. The results showed that inasmuch as mathematics teachers and their students acknowledge the importance of student’s active participation and teamwork, these practices have not been fully conceptualised into the Ghanaian mathematics classroom due to some cultural factors. Two main cultural factors were discovered from the analyses of the results. Firstly, the culture of acknowledging only correct answers in class has a negative impact on individual students’ confidence and participation during mathematics lessons. Also, the culture of teamwork is not fully accepted within Ghanaian classrooms as most students find it difficult working in groups and accepting and appreciating each other’s view. It was evident in all lessons that students were ridiculed by their peers when they provide a wrong answer to a question and this affected individual students’ participation in the classroom. Therefore, we suggested that teachers should be pro-active in promoting a classroom environment which is free from fear and intimidation to motivate students to be actively involved in the classroom discourse.

Perceived Regulatory Burden, Institutional Ties, Financial Resource Capability and Corporate Social Performance in a Sub-Saharan African Economy:

This study adopts the institutional, slack resource and social capital theories to examine the perceived regulatory burden-corporate social performance (CSP) link and the moderating effects of this relationship. The theoretical model was validated using confirmatory factor analysis and hierarchical regression on survey data from 287 small and medium-sized enterprises (SMEs) in Ghana. The empirical findings suggest that perceived regulatory burden is negatively related to CSP and that the level of institutional ties and financial resource capability amplify the perceived regulatory burden-CSP relationship such that the relationship is more negative and significant for higher institutional ties and financial resource capability.