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The network alchemy: Amplifying socio-ecological value in Kenya’s SME ecosystem

Author

Listed:
  • Samar N. M. AL-KINDY

    (Strathmore University, Nairobi, Kenya)

  • Anne NDIRANGU

    (Strathmore University, Nairobi, Kenya)

Abstract

Background: Supportive policies alone may not guarantee sustainable outcomes for small and medium enterprises (SMEs) in developing economies, where fragmented institutions and weak enforcement are common. This research explored whether network embeddedness influences the link between policy and institutional arrangements (PIA) and socio-ecological value creation (SEVC) among SMEs in Nairobi County, Kenya. It combined the Natural Resource-Based View with Embeddedness Theory (ET) to describe how firms leverage relational capital in a hybrid formal-informal economy. Methods: Using a pragmatist approach and a primarily quantitative mixed-methods design, the study surveyed 232 SMEs randomly selected from the 553 firms on KPMG's Top 100 Mid-Sized Companies list or in related databases. It also included four Key Informant Interviews with senior policy experts. Results: Structural Equation Modeling (SEM) in SPSS AMOS showed a significant interaction effect (B = 0.056, β = .11, t = 2.939, p = .003) and a strong direct impact of network embeddedness on SEVC (B = 0.771, β = .76, t = 18.759, p

Suggested Citation

  • Samar N. M. AL-KINDY & Anne NDIRANGU, 2026. "The network alchemy: Amplifying socio-ecological value in Kenya’s SME ecosystem," Access Journal, Access Press Publishing House, vol. 7(3), pages 503-523, June.
    • Handle: RePEc:aip:access:v:7:y:2026:i:3:p:503-523
    DOI: 10.46656/access.2026.7.3(2)
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    Keywords

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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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