Moderating effect of political affiliation, kinship ties, environmental munificence and environment uncertainty in the relationship between institutional trust and entrepreneurial orientation.

Micro-entrepreneurship constitutes undeniably an important development strategy in developing countries. Earlier empirical studies have shown it generates 20 to 45% of full-time employment and 30% to 50% of rural household income in Africa. However, when assessing employment growth through the expansion of existing microenterprises, data suggests that most small enterprises in rural Africa do not grow. This research seeks to examine the relationship between institutional trust and entrepreneurial orientation in rural Africa. The study investigates how external factors such as political connections, environmental uncertainty, munificence and kinship ties affect the relationship between institutional trust and entrepreneurial orientation. The research builds on an alternative approach to institutional theory as it relates to the African context. The research questions are addressed through both an exhaustive review and synthesis of the literature and using primary data gathered from surveys from microenterprise owners organized in cooperatives in rural communities of Angola. The data analysis tests the hypothesized relationships through ordinary least squares (OLS) regression with tests for moderation.