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Formal business networking and SME growth

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  • Bilitis Schoonjans
  • Philippe Cauwenberge
  • Heidi Bauwhede

Abstract

This paper provides new empirical evidence on the impact of formal business networking on small and medium-sized enterprise (SME) growth. Using a large, unbalanced panel data set of Flemish SMEs over the period 1992–2008, we examine whether participation in a government-supported program aimed at providing small business managers with structured formal networking contacts is associated with SME growth. Our results suggest that formal business networking is significantly positively correlated with net asset and added value growth. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Bilitis Schoonjans & Philippe Cauwenberge & Heidi Bauwhede, 2013. "Formal business networking and SME growth," Small Business Economics, Springer, vol. 41(1), pages 169-181, June.
    • Handle: RePEc:kap:sbusec:v:41:y:2013:i:1:p:169-181
    DOI: 10.1007/s11187-011-9408-6
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    3. Lefebvre, Virginie Marie & Sorenson, Douglas & Henchion, Maeve & Gellynck, Xavier, 2016. "Social capital and knowledge sharing performance of learning networks," International Journal of Information Management, Elsevier, vol. 36(4), pages 570-579.
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    5. Francesco Aiello & Paola Cardamone & Lidia Mannarino & Valeria Pupo, 2023. "Networks and family firm performance: some evidence from Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 30(5), pages 620-625, March.
    6. Zofia Gródek-Szostak & Marcin Suder & Rafał Kusa & Jakub Sikora & Marcin Niemiec, 2020. "Effectiveness of Instruments Supporting Inter-Organizational Cooperation in the RES Market in Europe. Case Study of Enterprise Europe Network," Energies, MDPI, vol. 13(23), pages 1-19, December.
    7. Szerb, László & Varga, Attila & Komlósi, Éva, 2017. "Gyors növekedésű vállalatok Magyarországon. Az innovatív, a rejtélyes és a virtuális gazellák [Fast-growing businesses in Hungary: The innovative, mysterious and virtual gazelles]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 476-506.
    8. Valentina Meliciani & Daniela Cagno & Andrea Fabrizi & Marco Marini, 2022. "Knowledge networks in joint research projects, innovation and economic growth across European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(3), pages 549-586, June.
    9. Alessandro Manello & Maurizio Cisi & Francesco Devicienti & Davide Vannoni, 2020. "Networking: a business for women," Small Business Economics, Springer, vol. 55(2), pages 329-348, August.
    10. Michele Rubino & Filippo Vitolla, 2018. "Implications of Network Structure on Small Firms’ Performance: Evidence from Italy," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(4), pages 1-46, March.
    11. Maurizio Cisi & Francesco Devicienti & Alessandro Manello & Davide Vannoni, 2016. "The impact of formal networking on the performance of SMEs," Carlo Alberto Notebooks 490, Collegio Carlo Alberto.
    12. Bužavaitė Monika & Korsakienė Renata, 2018. "Inter-Personal and Inter-Organizational Networks In Internationalization of SMEs: A Bibliometric Analysis and Review," Open Economics, De Gruyter, vol. 1(1), pages 94-104, August.
    13. Jamil Paolo Francisco & Tristan Canare & Jean Rebecca Labios, 2018. "Obstacles and Enablers of Internationalization of Philippine SMEs Through Participation in Global Value Chains," Working Papers id:12905, eSocialSciences.
    14. Jelle Schepers & Pieter Vandekerkhof & Yannick Dillen, 2021. "The Impact of the COVID-19 Crisis on Growth-Oriented SMEs: Building Entrepreneurial Resilience," Sustainability, MDPI, vol. 13(16), pages 1-20, August.
    15. Laura Corazza & Maurizio Cisi & Greta Falavigna, 2022. "The enabling role of formalized corporate networks to drive small and medium‐sized enterprises toward sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 545-558, January.
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    17. Maurizio Cisi & Francesco Devicienti & Alessandro Manello & Davide Vannoni, 2020. "The advantages of formalizing networks: new evidence from Italian SMEs," Small Business Economics, Springer, vol. 54(4), pages 1183-1200, April.
    18. Roberto Gabriele & Andrea Mazzitelli & Giuseppe Espa & Maria Michela Dickson, 2019. "Capabilities and firm growth: the role of formal collaboration agreements," DEM Working Papers 2019/16, Department of Economics and Management.
    19. Patrizia Pastore & Antonio Ricciardi & Silvia Tommaso, 2020. "Contractual networks: an organizational model to reduce the competitive disadvantage of small and medium enterprises (SMEs) in Europe’s less developed regions. A survey in southern Italy," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1503-1535, December.
    20. Bojan Moric Milovanovic & Dinko Primorac & Goran Kozina, 2020. "The impact of strategic networking on business performance of manufacturing SMEs operating in a predominantly service based economy," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 18(2B), pages 194-207.
    21. Roberto Bazanini & Celso Machado Junior, 2018. "Market as Religion: The Dynamics of Business Network in Megachurches," Brazilian Business Review, Fucape Business School, vol. 15(3), pages 262-283, May.
    22. Falciola, Justine & Jansen, Marion & Rollo, Valentina, 2020. "Defining firm competitiveness: A multidimensional framework," World Development, Elsevier, vol. 129(C).

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    More about this item

    Keywords

    Growth; Networking; SMEs; L14; L25; L26;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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