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Where do they go for advice? Entrepreneurs’ advice-seeking behavior in Africa

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  • Samuel Adomako
  • Joseph Amankwah-Amoah
  • Kwabena Kesse
  • Ernestine Ning

Abstract

Using time-lagged primary data from entrepreneurs in two developing countries (Ghana, N = 261 and Ethiopia, N = 166), we examine how institutional voids drive entrepreneurs’ advice seeking behavior. Our findings show that higher levels of institutional voids in these developing countries are negatively related to internal advice-seeking but positively associated with external advice-seeking. The results also show that a heightened perception of environmental dynamism negatively moderates the relationship between institutional voids and internal advice-seeking but positively moderates the effect of institutional voids and external advice-seeking. Furthermore, we find that the negative relationship between institutional voids and internal advice-seeking is positive when entrepreneurs develop ties with politicians. The positive relationship between institutional voids and external advice-seeking is amplified when political network connections are stronger. Implications and direction for future research are discussed.

Suggested Citation

  • Samuel Adomako & Joseph Amankwah-Amoah & Kwabena Kesse & Ernestine Ning, 2022. "Where do they go for advice? Entrepreneurs’ advice-seeking behavior in Africa," International Studies of Management & Organization, Taylor & Francis Journals, vol. 52(1), pages 44-62, January.
    • Handle: RePEc:taf:mimoxx:v:52:y:2022:i:1:p:44-62
    DOI: 10.1080/00208825.2021.2023441
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