A Panel Study of Firm Growth among SMEs in Networks
AbstractAn 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. Copyright 2001 by Kluwer Academic Publishers
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Small Business Economics.
Volume (Year): 16 (2001)
Issue (Month): 4 (June)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100338
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Watson, John, 2007. "Modeling the relationship between networking and firm performance," Journal of Business Venturing, Elsevier, vol. 22(6), pages 852-874, November.
- Joana Almodovar & Aurora Amélia Castro Teixeira, 2004. "Regional innovation networks evolution and firm performance: one or two way causality?," ERSA conference papers ersa04p88, European Regional Science Association.
- Manolova, Tatiana S. & Manev, Ivan M. & Gyoshev, Bojidar S., 2010. "In good company: The role of personal and inter-firm networks for new-venture internationalization in a transition economy," Journal of World Business, Elsevier, vol. 45(3), pages 257-265, July.
- N.S. Siddharthan & Stanley Nollen, 2006. "Non-equity Alliances and the Performance of Indian Software Firms," Working Papers id:544, eSocialSciences.
- André van Stel & Roy Thurik & Sander Wennekers & Martin Carree, 2010. "The relationship between entrepreneurship and economic development: is it U-shaped?," Scales Research Reports H200824, EIM Business and Policy Research.
- Joris Knoben, 2006. "A Relational Account of the Causes of Spatial Firm Mobility," ERSA conference papers ersa06p1, European Regional Science Association.
- Stanley Nollen & N.S. Siddharthan, 2008. "Factors Influencing the Performance of Indian and Chinese Software Firms," Working Papers id:1584, eSocialSciences.
- Dai, Ou & Liu, Xiaohui, 2009. "Returnee entrepreneurs and firm performance in Chinese high-technology industries," International Business Review, Elsevier, vol. 18(4), pages 373-386, August.
- Parker, Simon C., 2008. "The economics of formal business networks," Journal of Business Venturing, Elsevier, vol. 23(6), pages 627-640, November.
- Dan Kaufmann & Dafna Schwartz, 2009. "Networking strategies of young biotechnology firms in Israel," The Annals of Regional Science, Springer, vol. 43(3), pages 599-613, September.
- Dafna Schwartz & Raphael Bar-El, 2006. "Venture Investments in Israel - A Regional Perspective Dafna Schwartz and Raphael Bar-El Ben-Gurion University, School of Management, Israel," ERSA conference papers ersa06p868, European Regional Science Association.
- Jack, Sarah L., 2010. "Approaches to studying networks: Implications and outcomes," Journal of Business Venturing, Elsevier, vol. 25(1), pages 120-137, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.