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Does Inter-Organizational Networking Support Regional Development? Evidence from a Survey of Finnish Enterprises

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  • Pajarinen, Mika
  • Rouvinen, Petri

Abstract

Three fourths of Finnish business enterprises have relationships that are deeper than those associated with normal market transactions, i.e., they are involved in inter-organizational networking. Regionally networking is more commonplace in North Savo, North Karelia/Kainuu, Central Finland and Lapland/Northern Ostrobothnia. Connections to other firms is the most prevalent and qualitatively most important type of networking. Net-working is predominantly a local phenomenon, particularly when it comes to firms’ partner-ships with educational and research institutions as well as public bodies. Networking may be associated with better firm profitability in low-tech industries. Participating in a national cluster may be associated with firms’ better growth prospects. In the absence of functioning local markets for some productive inputs, being engaged in inter-organizational networking may be a necessary conditions for firms’ survival.

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Bibliographic Info

Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1157.

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Length: 93 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:rif:dpaper:1157

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Keywords: Inter-organizational networking; business collaboration; profitability; growth;

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