Examining the influence of network ties on self-efficacy and entrepreneurial performance in the informal sector in Sri Lanka

Ajantha Sisira Kumara, Ramanie Samaratunge, Alexander Newman, Lakmal Abeysekera

Research output: Chapter in Book/Report/Conference proceedingChapter (Book)Researchpeer-review


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.
Original languageEnglish
Title of host publicationNew Horizons in Management, Leadership and Sustainability
Subtitle of host publicationInnovative Case Studies and Solutions for Emerging Economies
EditorsSatinder Dhiman, Ramanie Samaratunge
Place of PublicationCham Switzerland
Number of pages30
ISBN (Electronic)9783030621711
ISBN (Print)9783030621704, 9783030621735
Publication statusPublished - 2021

Publication series

NameFuture of Business and Finance
ISSN (Print)2662-2467
ISSN (Electronic)2662-2475


  • Micro-entrepreneurs
  • Network ties
  • Emerging economies
  • Self-efficacy
  • Informal sector

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