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Examining the Influence of Network Ties on Self-Efficacy and Entrepreneurial Performance in the Informal Sector in Sri Lanka

In: New Horizons in Management, Leadership and Sustainability

Author

Listed:
  • Ajantha Sisira Kumara

    (University of Sri Jayewardenepura, Department of Public Administration, Faculty of Management Studies and Commerce)

  • Ramanie Samaratunge

    (Monash University, Clayton, Department of Management)

  • Alexander Newman

    (Deakin University, Faculty of Business and Law)

  • Lakmal Abeysekera

    (Monash University, Clayton, Department of Management)

Abstract

This study examines how weak and strong network ties of micro-entrepreneurs influence their entrepreneurial self-efficacy, and thereby micro-enterprise performance, in the informal sector of Sri Lanka. Using matched data from 635 micro-entrepreneurs and case officers employed by the government, structural equation modeling is employed to test the hypothesized relationships. In line with social cognitive theory, findings confirm that, whereas weak ties lead to enhanced entrepreneurial self-efficacy, strong ties do not. Furthermore, weak ties predicted micro-enterprise performance through enhancing entrepreneurial self-efficacy. These findings provide new insights into an emerging yet under-researched area.

Suggested Citation

  • Ajantha Sisira Kumara & Ramanie Samaratunge & Alexander Newman & Lakmal Abeysekera, 2021. "Examining the Influence of Network Ties on Self-Efficacy and Entrepreneurial Performance in the Informal Sector in Sri Lanka," Future of Business and Finance, in: Satinder Dhiman & Ramanie Samaratunge (ed.), New Horizons in Management, Leadership and Sustainability, edition 1, chapter 8, pages 147-176, Springer.
    • Handle: RePEc:spr:fuobcp:978-3-030-62171-1_8
    DOI: 10.1007/978-3-030-62171-1_8
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