The purpose of this paper is to develop a conceptual framework which combines the Strength of Weak Ties (SWT) concept with an innovative taxonomy for mitigating Principal-Agent conflicts. The taxonomy highlights the mechanisms through which African women can overcome the obstacles faced when setting up businesses. Design/Methodology/Approach: The paper discusses the role of 'weak ties' networks in entrepreneurial activities and integrates the concept with the key parameters of the Principal-Agent paradigm. The aim is to develop a taxonomy (or scorecard) for mitigating the challenges faced by women entrepreneurs in Africa from a Principal-Agent perspective. Six Principal-Agent parameters are analysed namely: attitudes towards risk; behaviour-based versus targets based contracts; asymmetric information; risk sharing; transaction costs; and verification and monitoring costs. Findings: With the aid of the taxonomy developed in the paper the authors analyse the channels through which 'strength of weak ties' networks may impact in mitigating the problems arising from the Principal-Agent paradigm. Some implications for women entrepreneurs in Africa are highlighted Research Implications: The current conceptual study suggests that the 'strength of weak ties' concept can be used by African women entrepreneurs to mitigate Principal-Agent problems. The authors argue that the original Principal-Agent taxonomy developed in the paper fills a conceptual research gap in the existing literature. Embedding the SWT concept within a Principal-Agent framework will facilitate further research not only to understand African women entrepreneurs' attitudes (and responses) towards risk and uncertainty. This will also facilitate greater understanding of the importance women attach to the role of incentives within their businesses. Practical Implications: The taxonomy presents new insights for understanding the most serious constraints that hinder women entrepreneurs in Africa. The taxonomy will be the basis for a follow-up empirical paper on selected African countries. Originality/Value: The originality of this study lies in the development of an innovative taxonomy which highlights the role of Strength of Weak Ties (SWT) social networks towards mitigating the Principal-Agent problem among African women entrepreneurs. The paper makes a significant contribution to the literature from a conceptual perspective.
PurposeWhile the topic of women's entrepreneurship continues to grow in academic appeal, the policy aspect is one that has received limited scholarly attention, especially in the context of developing countries. To address this gap in scholarship, the purpose of this paper aims to critically explore women's entrepreneurship policy in Tanzania. The research question asks: How are policies designed to encourage and support entrepreneurship in Tanzania gendered, and how might such policies be (re)designed so that they are more relevant to women entrepreneurs in the Tanzanian context? The authors contribute to extant scholarship by: drawing attention to the particular context for women's entrepreneurship in Tanzania; identifying gender biases inherent in current entrepreneurship policies; offering some recommendations for policymakers and identifying areas worthy of future research attention in this area.Design/methodology/approachThe study builds on the Global Women's Enterprise Policy project. The authors apply an adapted reading guide technique to analyse and critique relevant entrepreneurship policy documents in Tanzania. The reading guide examines the category and type of document being analysed, key themes, content, language and imagery, as well as the key policy recommendations being offered and their relevance to women's entrepreneurship in Tanzania and the wider sub-Saharan African region. Completed reading guide templates are then coded and collated into an excel spreadsheet. Findings are discussed and critiqued within a regulative, normative and cultural-cognitive framework.FindingsThe study provides rich and valuable insights into the unique context for women's entrepreneurship in Tanzania, shedding new light on how women's entrepreneurship is supported in a particular region of sub-Saharan Africa. Findings reveal that while current policy acknowledges the important role women play in their communities, especially in terms of their contribution to labour, it is geared more towards small and medium-sized enterprise (SME) development than entrepreneurship; this is despite the fact that entrepreneurship is identified as a means to address sustainable development challenges (notably unemployment and poverty) and expand opportunities for socially disadvantaged groups, especially women. Existing policy is essentially “context neutral” and hence relatively ineffective; the gender focus is lacking and there is a failure to take account of the specific context in which Tanzanian women entrepreneurs have to operate. The authors argue for policies designed to support women's entrepreneurship to be formalised and contextualised in their specific geographical and cultural setting. The “institutional pillars” framework allows us to identify areas where contextualisation of women's entrepreneurship policies could be enhanced.Practical implicationsThe study implies that, to be effective, policies designed to support women's entrepreneurship need to be formalised and contextualised to their specific geographical and cultural setting. Some areas where this might be achieved are identified. Avenues for future research in this area are also suggested.Originality/valueThe value of the paper lies in its focus on Tanzania, and its critique of existing policies from a gender and institutional perspective. It also enhances understanding of the unique context in Tanzania for entrepreneurship.
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