Institutional support and small firm growth: the intervening roles of resource acquisition and entrepreneurship behavior

Purpose This study investigates a serial mediation model examining how perceived institutional support influences venture growth through resource acquisition and entrepreneurship behavior. It also explores the moderating role of institutional ties in shaping the relationship between resource acquisition and entrepreneurship behavior. Design/methodology/approach Data were collected from 312 entrepreneurs in Ghana using a two-wave survey approach. Structural equation modeling (SEM) was employed to test the relationships between institutional support, resource acquisition, entrepreneurship behavior, and venture growth. A moderation analysis was conducted to assess the influence of institutional ties on the resource acquisition–entrepreneurship behavior relationship. Findings The study finds that perceived institutional support positively influences resource acquisition, which in turn enhances entrepreneurship behavior and ultimately contributes to venture growth. Moreover, institutional ties strengthen the relationship between resource acquisition and entrepreneurship behavior, suggesting that entrepreneurs with strong ties to government and policymakers are better positioned to leverage institutional support for business success. Originality/value This study extends institutional theory by empirically demonstrating the sequential influence of institutional support on venture growth. It provides novel insights into the role of resource acquisition and entrepreneurship behavior in mediating this relationship and highlights institutional ties as a key boundary condition for entrepreneurship in emerging markets.