The mediating effect of networking capability on the relationship between entrepreneurial orientation and manufacturing firms’ performance in Nairobi County, Kenya

Abstract

Networking Capability has been found to improve organization’s value creation, enhanced performance and organizational efficiency. In theory, networking capability is positively correlated with a variety of organizational outcomes. The current study sought to establish the mediating effect of Networking Capability on the relationship between entrepreneurial orientation and manufacturing firms’ performance in Nairobi County, Kenya. This research was based on positivism because the effect of entrepreneurial orientation and networking competence on manufacturing business performance was analysed without prejudice using existing theoretical models and structured instruments, then conceptualization was done from the discoveries. The quantitative study employed an explanatory research methodology and survey procedure. Entrep reneurial inclination, business performance, and networking abilities were independent. The study utilized Hayes Model 4 using PROCESS Macro Version 4.0 for mediation analysis. Results showed that networking capability had a mediating effect on the relationship between entrepreneurial orientation and firm performance among manufacturing firms in Kenya. The study reported mediation effect of networking capability as positive and significant indicating M3 = (a1 × b1) =.56 × .50 = .28, SE = .05, 95% CI = [.17, .37], which was significant with the confidence interval (CI) not straddling a zero. The study concluded that, networking capability indeed mediated partially the relationship between entrepreneurial orientation and manufacturing firms’ performance.