PurposeThe purpose of this paper is to develop a conceptual framework which combines the strength of weak ties (SWT) concept with an innovative taxonomy for mitigating principal-agent (P-A) conflicts. The taxonomy highlights the mechanisms through which African women can overcome the obstacles faced when setting up businesses.Design/methodology/approachThe paper discusses the role of “weak ties” networks in entrepreneurial activities and integrates the concept with the key parameters of the P-A paradigm. The aim is to develop a taxonomy (or scorecard) for mitigating the challenges faced by women entrepreneurs in Africa from a P-A perspective. Six P-A parameters are analysed, namely, attitudes towards risk; behaviour-based vs targets-based contracts; asymmetric information; risk-sharing; transaction costs; and verification and monitoring costs.FindingsWith the aid of the taxonomy developed in the paper, the authors analyse the channels through which “SWT” networks may impact in mitigating the problems arising from the P-A paradigm. Some implications for women entrepreneurs in Africa are highlighted.Research limitations/implicationsThe current conceptual study suggests that the “SWT” concept can be used by African women entrepreneurs to mitigate P-A problems. The authors argue that the original P-A taxonomy developed in the paper fills a conceptual research gap in the existing literature. Embedding the SWT concept within a P-A framework will facilitate further research not only to understand African women entrepreneurs’ attitudes (and responses) towards risk and uncertainty, but this will also facilitate greater understanding of the importance women attach to the role of incentives within their businesses.Practical implicationsThe taxonomy presents new insights for understanding the most serious constraints that hinder women entrepreneurs in Africa. The taxonomy will be the basis for a follow-up empirical paper on selected African countries.Originality/valueThe originality of this study lies in the development of an innovative taxonomy which highlights the role of “SWT” social networks towards mitigating the P-A problem among African women entrepreneurs. The paper makes a significant contribution to the literature from a conceptual perspective.
Journal of Small Business and Enterprise Development – Emerald Publishing
Published: Jun 18, 2018
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera