The Role of Government Intervention as a Moderating Variable in the Relationship between Entrepreneurial Networks and Business Owners’ Performance in Jordan

Abstract

This study built on a sample of 384 small businesses located in the central area of Jordan. We perform an analysis of the influence of entrepreneurial networks on small business performance. The purpose of this study was to test and demonstrate empirically the role of government as a moderating variable in the relationship between entrepreneurial networks and small business owners' performance. The population of this study is small business owners who have participated in ERADA program of as much as 4906 small business. These results indicate that entrepreneurial networks have a significant effect on the performance of the small business owners. It provides an empirical explanation that entrepreneurial networks and government intervention can contribute to the improvement of small business owners' performance while the government's role is not proven moderate the relationship between entrepreneurial networks and small business owners' performance. The significant positive effects of entrepreneurial networks suggest that this variable is important in enhancing small business owners' performance. As such, small business owners should be inculcated with these entrepreneurial networks. In addition, government intervention should take into consideration of entrepreneurial networking when designing and conducting any entrepreneurship program.

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“…Therefore, the capacity of entrepreneurs plays a significant role in the business activities of the business. Entrepreneurial competencies of entrepreneurs are the unity between knowledge, skills, behavior, attitudes and other personal characteristics of entrepreneurs to meet the requirements of business activities, thereby helping them to achieve and maintain business success (Alhnaity, Almuala, & Elmasri, 2018). According to resource-based theory (RBT), business capacity is a valuable and rare resource that the opponent can hardly copy or imitate, so it will contribute to the advantage of the edge (Gupta & Mirchandani, 2018;Mandawa, Sanghavi, & Mostto, 2014;Roy, Tripathy, & Tripathy, 2017).…”

“…Similarly, research by Ibrahim and Muritala (2015) finds that government interested in promoting small businesses should consider the impact of government policies and programs on small businesses. Alhnaity et al (2018) also observe that government regulations on wages, taxes, licensing and other regulations are one of the critical reasons why informal sector business is developing. Government policies can crush the small business sector in any economy without careful attention.…”