Leaning towards homogeneity: unpacking the relationship between network isomorphism, internal innovation and sustainable growth of small enterprises

Purpose Prior research has overlooked how the dynamics of network isomorphism impact the sustainable growth of small enterprises. This paper examines the effects of normative, mimetic, and coercive network isomorphisms on internal innovation and sustainable growth of small enterprises. Design/methodology/approach A research model was developed and tested using survey data from 319 small enterprises in Ghana and structural equation modelling (SEM AMOS) to regress the data. Findings The results revealed that both mimetic and normative network isomorphisms have a positive and significant impact on the sustainable growth of small enterprises; however, coercive network isomorphism does not. Internal innovation mediates the paths from mimetic and normative network isomorphisms to sustainable growth. Furthermore, internal innovation fully mediates the significant relationship between network isomorphism and sustainable growth. Research limitations/implications This study demonstrates that small enterprises adopting homogeneity acquire critical external resources that enhance internal innovation and drive sustainable growth. By examining mimetic, normative, and coercive isomorphism, the study advances our understanding of how network isomorphic forces shape small enterprise sustainability. As the survey was conducted among small enterprises in Ghana, the generalisability of the findings may be limited. Originality/value This paper offers a novel integration of network isomorphism and the diffusion of innovation theories to develop and test a “network isomorphism model.” The findings address salient gaps in the literature by providing unique empirical insights into how network isomorphic pressures influence internal innovation and sustainable growth of small enterprises.