Abstract

The study sought to investigate the relationship social networking construct and firm performance. A quantitative research design was employed, whereby data were collected, analyzed and presented using quantitative techniques. Primary data was collected directly from the respondents who are intrapreneurs employed in small and medium bakery and beverage manufacturing firms in Kampala Uganda.

The results show a significant and positive relationship between social networks and firm performance (r=.521**, p<.01). This implies that, adhering to and implementing the advice and other information from the professionals, experienced business associates and colleagues will enhance the level of performance of the small scale manufacturing businesses.

Further, regression results show that social networks predicted firm performance (Beta = .445, Sig=000).

This study posits that social networks can be a cost-effective way of improving small firms’ performance, particularly manufacturing firms. It can therefore be recommended that, small firms support information exchange and resource sharing within and without the business through building blocks that enhance trust amongst its employees. This can be inexpensive method of finding out more efficient ways of operating thus improved firm performance.