The network alchemy: Amplifying socio-ecological value in Kenya’s SME ecosystem

Samar N. M. Al-Kindy () and Anne Ndirangu ()
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Samar N. M. Al-Kindy: Strathmore University, Nairobi, Kenya
Anne Ndirangu: Strathmore University, Nairobi, Kenya

Access Journal, 2026, vol. 7, issue 3, 503-523

Abstract: Background: Supportive policies alone may not guarantee sustainable outcomes for small and medium enterprises (SMEs) in developing economies, where fragmented institutions and weak enforcement are common. This research explored whether network embeddedness influences the link between policy and institutional arrangements (PIA) and socio-ecological value creation (SEVC) among SMEs in Nairobi County, Kenya. It combined the Natural Resource-Based View with Embeddedness Theory (ET) to describe how firms leverage relational capital in a hybrid formal-informal economy. Methods: Using a pragmatist approach and a primarily quantitative mixed-methods design, the study surveyed 232 SMEs randomly selected from the 553 firms on KPMG's Top 100 Mid-Sized Companies list or in related databases. It also included four Key Informant Interviews with senior policy experts. Results: Structural Equation Modeling (SEM) in SPSS AMOS showed a significant interaction effect (B = 0.056, β = .11, t = 2.939, p = .003) and a strong direct impact of network embeddedness on SEVC (B = 0.771, β = .76, t = 18.759, p

Keywords: network embeddedness; structural embeddedness; Policy and Institutional Arrangements; Socio-Ecological Value Creation; SMEs; relational embeddedness; Kenya (search for similar items in EconPapers)
JEL-codes: L26 M14 Q01 Q56 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:aip:access:v:7:y:2026:i:3:p:503-523

DOI: 10.46656/access.2026.7.3(2)

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