“We Know Their House, Family, and Workplace”: Trust in entrepreneurs’ trade credit relationships in weak institutions

Amoako, Isaac Oduro; Akwei, Cynthia; Damoah, Isaac Sakyi

doi:10.1111/jsbm.12488

Cited by 29 publications

(28 citation statements)

References 66 publications

(73 reference statements)

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“…The insights from this study highlight the significance of informal institutions such as personal networks and trust in diaspora entrepreneurship growth in Africa. Thus, the findings support the view that native entrepreneurs can rely on trust, personal networks and cultural proximities to grow firms in weak formal institutions (see Amoako, Akwei and Damoah, 2018;Amoako and Lyon, 2014;Zhu et al, 2011).…”

Section: Discussionsupporting

confidence: 75%

“…Much research on entrepreneurship has drawn from economic (North, 1990) and sociological (Scott, 2001) perspectives on institutions to explain how resource allocations, formal structures and socio-cultural norms interact to shape enterprise formation and development in different contexts (see Amankwah-Amoah, 2016;Amoako, Akwei and Damoah, 2018;Brinkerhoff, 2016;Bruton, Ahlstrom and Li, 2010;Hardy et al, 2014;Parker, 2010;Peng et al, 2008;Peng et al, 2009;Zoogah et al, 2015). Diaspora entrepreneurship scholars have also followed suit to appropriate economic and social dimensions of institutions to understand migrant entrepreneurs' institutional challenges and prospects in their countries of residence (Riddle and Brinkerhoff, 2011;Sepulveda et al, 2011;Syrett and Sepulveda, 2012) and countries of origin (see Brinkerhoff, 2016;Coniglio and Brzozowski, 2016;Nkongolo-Bakenda and Chrysostome, 2013;Ojo, Nwankwo and Gbadamosi, 2013) and how these implicate on their business resources and their successes or failures.…”

Section: Institutions and Diaspora Entrepreneurship In Emerging Economiesmentioning

confidence: 99%

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Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom

Nyame-Asiamah

Amoako

Amankwah‐Amoah

et al. 2020

Technological Forecasting and Social Change

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Section: Discussionsupporting

confidence: 75%

Section: Institutions and Diaspora Entrepreneurship In Emerging Economiesmentioning

confidence: 99%

Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom

Nyame-Asiamah

Amoako

Amankwah‐Amoah

et al. 2020

Technological Forecasting and Social Change

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“…However, extreme customer orientations are known to inhibit the breakthrough of innovations that create markets and disrupt equilibrium since these radical changes occur in front of customers (Becherer et al, 2008). Access to markets is often associated with an increase in trading (Amoako et al, 2020;Dana et al, 2007;Paul & Boden, 2011;Pergelova et al, 2019). Consistent with that, Lincoln (2012) found that the market might record little or no influence on business growth in terms of sales and turnover in unfavorable economic conditions, especially in women-owned enterprises, despite the significant role markets are conceptualized to have in much of the entreprenuerial ecosystem literature (cf., Isenberg, 2010;Liguori et al, 2019).…”

Section: Marketmentioning

confidence: 75%

Women entrepreneurship in developing economies: A gender-based growth model

Ogundana

Simba

Dana

et al. 2021

Journal of Small Business Management

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Women entrepreneurship research in the developing world relies on theoretical perspectives derived elsewhere. Hence, understanding the original business-development approaches adopted by women entrepreneurs in developing economies remains elusive. Accordingly, we collected and analyzed rich data generated through 31 in-depth interviews and artifacts of Nigerian women entrepreneurs in the garment manufacturing business. Our analysis revealed distinct constructs that account for their business-development activities. It shows money (access and utilization), market (customer intelligence), and management (nonformal education and experience) as crucial enterprise development components in women entrepreneurship. Motherhood (household responsibilities), meso-and macro-environments (socioeconomic and cultural factors) not only affected business development but also inhibited women entrepreneurs' access and utilization of money, management, and markets and shaped their business development actions. Theoretical and practical implications for entrepreneurship research and policy development initiatives in the developing world are offered. KEYWORDS Gender-based growth model; growth determinants; women entrepreneurshipWomen entrepreneurs in West Africa generally operate their businesses within an institutional environment characterized by corruption, lack of government transparency, incoherent policies, bureaucracy and inefficiency, excessive red tape, disproportionate taxes, and poor infrastructures (Dana, 2018; Ogundana, Forthcoming). The legal and judicial systems in many West African countries suffer from the (a) absence of law and criminal sanctions explicitly addressing sexual harassment in business; (b) lack of legislation that ensures that married women and men have equal property ownership rights; and (c) presence of laws requiring married women to obey their husbands (World Bank, 2013). African culture, religion, and family systems generally assume that women are subordinate to men. Accordingly, women carry the CONTACT Oyedele Martins Ogundana

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“…In the absence of established government institutions, traders involved in export business in the African context have resorted to informal institutions including export trade associations and indigenous institutions (Amaoko, 2015;Amoako et al, 2020;Smith and Luttrel, 1994) for support. Within these rarely studied establishments, trade agreements and contracts are mainly legislated on the basis the of personal trust (Omeihe, 2019).…”

Section: Trust and Export Behaviour In Informal Institutionsmentioning

confidence: 99%

Trusting in indigenous institutions: exporting SMEs in Nigeria

Omeihe

Simba

Rae

et al. 2021

JSBED

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PurposeThe purpose of this article is to develop new insights into the interplay between trust, indigenous institutions and weak/dysfunctional formal institutions using the Nigerian context – a developing country in Western Africa. It advances new understanding on how Nigerian entrepreneurs trust in their indigenous institutions such as family ties, kinship, chieftaincy, religion, cooperatives and trade associations to resolve disputes arising from their exporting activities as opposed to dormant formal institutions in their country.Design/methodology/approachThis exploratory study adopts an interpretive research paradigm, and it utilises a case study strategy. Data collected through observations, archival records and qualitative conversations with 36 exporting Nigerian small and medium-sized enterprises (SMEs) is analysed by utilising a combination of within and cross-case analysis techniques. Doing so enabled an in-depth study of the methods their owner-managers use in order to take advantage of the relationships they established through their long-standing cultural institutions in the place of weak formal institutions in their country.FindingsIndigenous institutions have evolved to replace formalised institutions within the business environment in Nigeria. They have developed to become an alternative and trusted arbiter for solving SMEs' export issues because of weak/dysfunctional formal institutions in the Western African country. The owner-managers of exporting SMEs perceive formal institutions as representing a fragmented system that does not benefit their export businesses.Practical implicationsThe findings demonstrate that there is need for policymakers to consider the role of informal institutions in the Nigerian context. Such an approach is essential given the economic importance and increasing number of SMEs that trade and export their goods through informal structures in Nigeria.Originality/valueThe study indicates that it is not just the void or absence of institutions that exist in a developing country such as Nigeria, but weak/dysfunctional formal institutions have been replaced by culturally embedded informal institutions. Thus, the study provides a new theoretical avenue depicting the concept of trusting in indigenous institutions.

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“We Know Their House, Family, and Workplace”: Trust in entrepreneurs’ trade credit relationships in weak institutions

Abstract: The version presented here may differ from the published version or from the version of the record. Please see the repository URL above for details on accessing the published version and note that access may require a subscription.

Cited by 29 publications

References 66 publications

Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom

Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom

Women entrepreneurship in developing economies: A gender-based growth model

Trusting in indigenous institutions: exporting SMEs in Nigeria

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