A Panel Study of Firm Growth among SMEs in Networks
Purchase on Springer.com
$39.95 / €34.95 / £29.95*
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.
An underlying assumption in SME literature, as well as among policymakers, is that networks are good per se especially for SMEs. Through accessing and utilising external resources in the network, the SME can overcome some of the assumed disadvantages of limited size. Thus networking is assumed to enhance small firm performance and thereby small firm growth. This article investigates this assumption. Analysis of panel data ascertains that a substantial number of SMEs are actively networking and that the level of networking has been maintained over a five-year period. In spite of this there is no evidence of associated short-term benefits such as growth in employment or growth in total sales resulting from the networking activities. The analyses suggest, however, that networking is associated with high growth in the geographic extension of markets, which suggests that networking sustains long-term objectives of the firms.
- Ahokangas, Petri, 1998, Internationalisation and Resources. An Analysis of Processes in Nordic SMEs, Acta Wasaensia, No. 64. Universitas Wasaensis, Vaasa.
- Aldrich, H. and C. Zimmer, 1986, ‘Entrepreneurship Through Social Networks', in D. L. Sexton and R. W. Smilor (eds.), The Art and Science of Entrepreneurship, Ballinger.
- Birely, S., 1985, ‘The Role of Networks in The Entrepreneurial Process', Journal of Business Venturing 1(2), 107-117.
- Davidsson, Per, 1989, Continued Entrepreneurship and Small Firm Growth, Ekonomiska Forskningsinstitutet, 2nd reprint edition, Stockholm.
- Dubini, P. and H. Aldrich, 1991, ‘Personal and Extended Networks are Central to the Entrepreneurial Process', Journal of Business Venturing 6, 305-313.
- Easton, G., 1992, ‘Industrial Networks: A Review', in B. Axelsson and G. Easton (eds.), Industrial Networks–A New View of Reality, London: Routledge.
- ECON, 1998, Evalueringen av Nettverksprogramet, ECON rapport 27/98, Oslo (in Norwegian).
- ENSR, 1996, The European Observatory for SMEs. Fourth Annual Report, European Network for SME Research/EIM Small Business Consultancy, Zoetermeer.
- Haahti, Antti J., 1995, INTERSTRATOS Internationalization of Strategic Orientations of European Small and Medium Enterprises, Institute Report 95-01, European Institute for Advanced Studies in Management, Brussels.
- Havnes, P. A., 1998, Dynamics of Small Firm Internationalisation. A European Panel Study, University of Stirling, Stirling.
- Håkansson, H. and J. Johanson, 1993, ‘The Network as Governance Structure–Interfirm Cooperation Beyond Markets and Hierarchies', in G. Grabher (ed.), The Embedded Firm–On the Socioeconomis of Industrial Networks, London: Routledge.
- Johannisson, B., 1987, ‘Beyond Process and Structure: Social Exchange Networks', International Studies in Management and Organization XVII(1), 2-23.
- Johannisson, B., 1996, ‘The Dynamics of Entrepreneurial Network', in Frontiers in Entrepreneurship Research 1996 Edition, Babson College.
- Johannisson, B. and K. Senneseth, 1993, ‘Paradoxes of Entrepreneurship', in H. Klandt (ed.), Entrepreneurship and Business Development, London: Avebury.
- Johannisson, B., O. Alexanderson, K. Nowicki and K. Senneseth, 1994, ‘Beyond Anarchy and Organization–Entrepreneurs in Contextual Network', Entrepreneurship and Regional Development 6(4), 329-356.
- Larson, A., 1992, ‘Network Dyads in Entrepreneurial Settings: A Study of the Governance of Exchange Relationship', Administrative Science Quarterly 37, 76-104.
- Laursen, K., V. Mahnke and P. Vejrup-Hansen, 1999, ‘Firm Growth from a Knowledge Structure Perspective', paper presented at DRUID's Summer Conference on National Innovation Systems, Rebild.
- Mazzarol, T., 1998, ‘Partnerships–A Key to Growth in Small Business', paper presented at 43rd ICSB Conference, Singapore.
- Piore, M. J. and C. P. Sabel, 1984, Second Industrial Divide, New York: Basic Books.
- Rosa, Peter, 1998, ‘Entrepreneurial Processes of Business Cluster Formation and Growth by “Habitual” Entrepreneurs’, Entrepreneurship Theory and Practice 22(4), 53-88.
- Starr, J. A. and I. C. MacMillian, 1990, ‘Resource Cooptation via Social Contracting: Resource Acquisition Strategies for New Ventures’, Strategic Management Journal 11, 79-90.
- Storey, David J., 1994, Understanding the Small Business Sector, London: Routledge.
- Tikkanen, Henrikki, 1997, A Network Approach to Industrial Business Processes. A Theoretical and Empirical Analysis, Series A-7, Publications of the Turku School of Economics and Business Administration, Turku.
- Wasserman, S. and K. Faust, 1994, Social Network Analysis: Methods and Applications, Cambridge University Press.
- Wiklund, J., 1998, Small Firm Growth and Performance, JIBS Dissertation Series 009, Jönköping International Business School, Jönköping.
- A Panel Study of Firm Growth among SMEs in Networks
Small Business Economics
Volume 16, Issue 4 , pp 293-302
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- Industry Sectors