Social Networking Relationships and Digital Microenterprise Growth in the Informal Sector: The Mediating Role of Individual Entrepreneurial Orientation

Abstract

This paper aims to examine the role of social networking relationships in growing an informal sector digital microenterprise and the mediating effect of individual entrepreneurial orientation (IEO). Using data from 248 digital microenterprises in the informal sector of Senegal, this study utilizes multiple regression and Hayes process macro Model 4 to show that social networking relationships are positively associated with online informal microbusiness’ growth and IEO. It further reveals that IEO is related to digital microenterprise growth and partially mediates its link with social networking relationships. This study contributes to the social capital literature by showing that social relationships with external entities can provide resources to buffer against infrastructure and resource deficits and other growth challenges found in developing countries. It also extends the literature on IEO by facilitating a deeper understanding of individual entrepreneurial behaviors that can help transform resources from social networking relationships into growth in an informal digital environment.