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Enterprise performance and the functional diversity of social capital

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  • Abigail Barr

Abstract

Entrepreneurial networks are multifunctional; they can be used to access information about technologies and markets or to reduce uncertainties. A network`s function affects its structure and both the magnitude and nature of the impact that it has on enterprise performance. Networks that reduce uncertainty are small and cohesive. They generate positive spillover effects, while having little overall effect on enterprise performance. Networks that provide access to information about technologies and markets are large and diverse. They have a significant effect on enterprise performance, but tend not to generate positive spillovers. Evidence from the Ghanaian manufacturing sector supports these propositions.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/1998-01.

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Date of creation: 01 Jun 1998
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Handle: RePEc:oxf:wpaper:wps/1998-01

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  1. Udry, Christopher, 1994. "Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 495-526, July.
  2. Schmitz, Hubert, 1982. "Growth constraints on small-scale manufacturing in developing countries: a critical review," World Development, Elsevier, vol. 10(6), pages 429-450, June.
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Cited by:
  1. Francis Teal, 1998. "The Ghanaian manufacturing sector 1991-1995: firm growth, productivity and convergence," CSAE Working Paper Series 1998-17, Centre for the Study of African Economies, University of Oxford.
  2. Biggs, Tyler & Shah, Manju Kedia, 2006. "African small and medium enterprises, networks, and manufacturing performance," Policy Research Working Paper Series 3855, The World Bank.
  3. Esther K. Ishengoma & Robert Kappel, 2006. "Economic Growth and Poverty: Does Formalisation of Informal Enterprises Matter?," GIGA Working Paper Series 20, GIGA German Institute of Global and Area Studies.
  4. Lyon, Fergus, 2000. "Trust, Networks and Norms: The Creation of Social Capital in Agricultural Economies in Ghana," World Development, Elsevier, vol. 28(4), pages 663-681, April.
  5. Robert Holzmann & Joseph E. Stiglitz, 2001. "New Ideas about Old Age Security : Toward Sustainable Pension Systems in the 21st Century," World Bank Publications, The World Bank, number 13857, October.
  6. Richard Duncombe & Richard Heeks, 2002. "Enterprise across the digital divide: information systems and rural microenterprise in Botswana," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(1), pages 61-74.
  7. Narayan, Deepa, 1999. "Bonds and bridges : social and poverty," Policy Research Working Paper Series 2167, The World Bank.
  8. Mccormick, Dorothy, 1999. "African Enterprise Clusters and Industrialization: Theory and Reality," World Development, Elsevier, vol. 27(9), pages 1531-1551, September.
  9. Juliane Brach & Robert Kappel, 2009. "Global Value Chains, Technology Transfer and Local Firm Upgrading in Non-OECD Countries," GIGA Working Paper Series 110, GIGA German Institute of Global and Area Studies.
  10. Nichter, Simeon & Goldmark, Lara, 2009. "Small Firm Growth in Developing Countries," World Development, Elsevier, vol. 37(9), pages 1453-1464, September.
  11. Atieno, Rosemary, 2009. "Linkages, Access to Finance and the Performance of Small-Scale Enterprises in Kenya," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

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