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The Impact of Formal Networking on the Performance of SMEs

Listed author(s):
  • Maurizio Cisi

    ()

    (Department of Management, University of Torino, Italy)

  • Francesco Devicienti

    ()

    (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy)

  • Alessandro Manello

    ()

    (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy)

  • Davide Vannoni

    ()

    (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy)

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.

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File URL: http://www.biblioecon.unito.it/biblioservizi/RePEc/tur/wpapnw/m39.pdf
File Function: First version, 2016
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Paper provided by Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino in its series Working papers with number 039.

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Length: 35 pages
Date of creation: Nov 2016
Handle: RePEc:tur:wpapnw:039
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