Role of social networks and entrepreneurial success: Understanding the dynamics of knowledge acquisition and green entrepreneurial orientation

Small and medium organizations (SMEs) are the backbone of any country, especially emerging economies like Pakistan. Yet, they hesitate to make long-term investments due to financial and market turbulence, inflation, limited economic opportunities, and political instability, especially in developing countries. In such a context, relying on social networks could benefit entrepreneurs, but its relationship with entrepreneurial success remains unclear. Using network theory as a theoretical standpoint, this study aims to understand the underlying mechanisms of the relationship between social networks and entrepreneurial success in SME industries of Pakistan. The indirect effect of knowledge acquisition and the moderating role of green entrepreneurial orientation are also tested. The data was collected from 311 Pakistani SMEs through a self-administered questionnaire and analyzed using structural equation modeling. The results revealed that social networks strongly influenced knowledge acquisition and entrepreneurial success and confirmed the positive moderating role of green entrepreneurial orientation in all relationships. This study significantly underwrites academic literature by identifying a unique theoretical framework that tests the underlying methods for entrepreneurial success for SMEs in an emerging economy. For practitioners, this study empirically proves the significance of social networks that SME managers should consider during strategic planning to achieve business success.