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Where do they go for advice? Entrepreneurs’ advice-seeking behavior in Africa

Samuel Adomako,J. Amankwah‐Amoah,K. Kesse,Ernestine Ning

Published 2022 in International Studies of Management & Organization

ABSTRACT

Abstract Using time-lagged primary data from entrepreneurs in two developing countries (Ghana, N = 261 and Ethiopia, N = 166), we examine how institutional voids drive entrepreneurs’ advice seeking behavior. Our findings show that higher levels of institutional voids in these developing countries are negatively related to internal advice-seeking but positively associated with external advice-seeking. The results also show that a heightened perception of environmental dynamism negatively moderates the relationship between institutional voids and internal advice-seeking but positively moderates the effect of institutional voids and external advice-seeking. Furthermore, we find that the negative relationship between institutional voids and internal advice-seeking is positive when entrepreneurs develop ties with politicians. The positive relationship between institutional voids and external advice-seeking is amplified when political network connections are stronger. Implications and direction for future research are discussed.

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