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The Impact of Formal Networking on the Performance of SMEs

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  • Davide Vannoni

    (Department of Economics and Statistics)

Abstract

Using a large sample of Italian small and medium enterprises (SMEs), we investigate the effect of membership in a formal business network (?contratto di rete?) on firms? economic performance. We find that network participation has a positive effect on value added and exports, but not on profitability. The advantages of networking are stronger in the case of: smaller SMEs, firms operating in traditional and in more turbulent markets, firms located in less developed areas and firms not already exploiting the weaker ties offered by industrial districts. Network characteristics, such as size, geographical dispersion and diversity, are also found to influence performance.

Suggested Citation

  • Davide Vannoni, 2018. "The Impact of Formal Networking on the Performance of SMEs," Proceedings of International Academic Conferences 7508382, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:7508382
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    Cited by:

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    2. Calabrese, Giuseppe Giulio & Manello, Alessandro, 2018. "Firm internationalization and performance: Evidence for designing policies," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1221-1242.
    3. Ćurčin, Natalija & Dulčić, Želimir & Mršić, Slađana Pavlinović, 2018. "Communication Channels and Innovative Farmer Behaviour in South Croatia," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 402-416, Governance Research and Development Centre (CIRU), Zagreb.
    4. 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.
    5. Isaac Kazungu, 2023. "Network Linkages and Performance of Exporting Micro and Small Enterprises in Dar es Salaam, Tanzania: Perspectives in the Handicraft Industry," Global Business Review, International Management Institute, vol. 24(6), pages 1383-1400, December.

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    More about this item

    Keywords

    formal business network; small and medium firms; economic performance;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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