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The effect of network relationship on the performance of SMEs

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  • Lin, Feng-Jyh
  • Lin, Yi-Hsin

Abstract

This study examines the effect of network relationship on the performance of small and medium enterprises (SMEs). SMEs strongly depend on external entities and cooperate with partners to improve in their performance. The literature review and analysis shows a distinction of the factors underlying the motivation of forming network into knowledge sharing, innovation accelerating, transaction costs reducing, better reputation, and new market opportunities creation. This study uses the measure of multiple correspondence analysis (MCA) to analyze data from questionnaires of 77 Taiwanese manufacturing SMEs. The findings divide the factors affecting the network relationship into two dimensions, network content and network relationship. The results also show that different types of network relationship have different levels of effect on performance.

Suggested Citation

  • Lin, Feng-Jyh & Lin, Yi-Hsin, 2016. "The effect of network relationship on the performance of SMEs," Journal of Business Research, Elsevier, vol. 69(5), pages 1780-1784.
  • Handle: RePEc:eee:jbrese:v:69:y:2016:i:5:p:1780-1784
    DOI: 10.1016/j.jbusres.2015.10.055
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    Cited by:

    1. Maurizio Cisi & Francesco Devicienti & Alessandro Manello & Davide Vannoni, 2016. "The Impact of Formal Networking on the Performance of SMEs," Working papers 039, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    2. Francesco Aiello & Paola Cardamone & Lidia Mannarino & Valeria Pupo, 2020. "Networks And Family Firm Performance: Some Evidence From Italy," Working Papers 202007, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    3. Chen, Jiawen & Liu, Linlin, 2020. "Customer participation, and green product innovation in SMEs: The mediating role of opportunity recognition and exploitation," Journal of Business Research, Elsevier, vol. 119(C), pages 151-162.
    4. 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.
    5. Narasimha Rao Vajjhala & Ervin Ramollari, 2016. "Big Data using Cloud Computing - Opportunities for Small and Medium-sized Enterprises," European Journal of Economics and Business Studies Articles, European Center for Science Education and Research, vol. 2, January-A.
    6. Abdul Majid & Muhammad Yasir & Muhammad Yasir & Zahid Yousaf, 0. "Network capability and strategic performance in SMEs: the role of strategic flexibility and organizational ambidexterity," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 0, pages 1-24.
    7. Cheng, Colin C.J. & Shiu, Eric C., 2020. "What makes social media-based supplier network involvement more effective for new product performance? The role of network structure," Journal of Business Research, Elsevier, vol. 118(C), pages 299-310.
    8. Judit Oláh & Zuzana Virglerova & József Popp & Jana Kliestikova & Sándor Kovács, 2019. "The Assessment of Non-Financial Risk Sources of SMES in the V4 Countries and Serbia," Sustainability, MDPI, Open Access Journal, vol. 11(17), pages 1-19, September.
    9. Bianchi, Constanza & Abu Saleh, Md., 2020. "Investigating SME importer–foreign supplier relationship trust and commitment," Journal of Business Research, Elsevier, vol. 119(C), pages 572-584.
    10. 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.
    11. Tao, Qizhi & Li, Haoyu & Wu, Qun & Zhang, Ting & Zhu, Yingjun, 2019. "The dark side of board network centrality: Evidence from merger performance," Journal of Business Research, Elsevier, vol. 104(C), pages 215-232.
    12. 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.
    13. Alqahtani, Nasser & Uslay, Can, 2020. "Entrepreneurial marketing and firm performance: Synthesis and conceptual development," Journal of Business Research, Elsevier, vol. 113(C), pages 62-71.
    14. Hao Lu & Pardis Pishdad-Bozorgi & Guangbin Wang & Yingxia Xue & Dan Tan, 2019. "ICT Implementation of Small- and Medium-Sized Construction Enterprises: Organizational Characteristics, Driving Forces, and Value Perceptions," Sustainability, MDPI, Open Access Journal, vol. 11(12), pages 1-20, June.
    15. Selena Aureli & Andrea Cardoni & Mara Del Baldo & Rosa Lombardi, 2018. "The Balanced Scorecard Logic in The Management Control and Reporting of Small Business Company Networks: A Case Study," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 17(2), pages 191-215, June.
    16. 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.
    17. Scuotto, Veronica & Garcia-Perez, Alexeis & Nespoli, Chiara & Messeni Petruzzelli, Antonio, 2020. "A repositioning organizational knowledge dynamics by functional upgrading and downgrading strategy in global value chain," Journal of International Management, Elsevier, vol. 26(4).
    18. Song, Hua & Yang, Xuan & Yu, Kangkang, 2020. "How do supply chain network and SMEs’ operational capabilities enhance working capital financing? An integrative signaling view," International Journal of Production Economics, Elsevier, vol. 220(C).
    19. Monaghan, Sinéad & Lavelle, Jonathan & Gunnigle, Patrick, 2017. "Mapping networks: Exploring the utility of social network analysis in management research and practice," Journal of Business Research, Elsevier, vol. 76(C), pages 136-144.

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