Intrapreneurship, Industry Agglomeration and Sectoral Growth in the Manufacturing Industry: Evidence from an Emerging Economy

Abstract

This article posits intrapreneurship as a meso-level study through the lens of industry agglomeration externality and sectoral output growth, which are moderated by the institutional environment. The study uses industry agglomeration as a unit of measurement and analysis, postulating it as a distinct model variable. Standardised measurement scales for the constructs of industry agglomeration externality, formal and informal institutional roles, were developed and tested to investigate the intrapreneurship-sectoral growth nexus. A questionnaire survey was administered to elicit data from sampled manufacturing industries in Ghana. Partial least squares structural equation modelling (PLS-SEM) was used to analyse the data. The study finds that manufacturing industries in Ghana exploit the benefits of spatial proximity, technological disruptions and knowledge spillovers to promote industry innovation and induce renewed strategic directions to grow the sector. The extent to which the informal institutional environment moderates the innovation and strategy renewal effects on sectoral growth is stronger than that of formal institutions. The study also reveals that the 2010–2020 Ghana Industry Policy Framework (GIPF) and the National Entrepreneurship and Innovation Plan (NEIP) require strategic reviews and amendments for the enhancement of technological innovation, rejuvenation and research grants in the manufacturing sector.