Business networks: assisting knowledge management and competence acquisition within UK manufacturing firms

Abstract

In both literature and policy documents, small and medium‐size enterprises (SMEs) are being advised to form networks as a route for acquiring the knowledge required to survive in rapidly changing and/or highly competitive markets. There is, however, only limited anecdotal evidence of the positive contribution that networks are a way of upgrading organisational learning and thereby enhancing the performance of small firms. Additionally, there appears to be minimal guidance available on how small firms might exploit networks as a route for improving their capabilities to acquire and utilise knowledge to enhance future performance. To acquire additional empirical data on these issues, a survey was undertaken to examine the learning style of small UK manufacturing firms participating in some form of cooperative relationship with other members of their market supply chain. Learning style in the survey was measured by seeking response to a scale which permits assessment of the degree to which the respondent firm is exhibiting a single‐ versus double‐loop learning style. A survey of small firms advisers to gain their view of the organisational competency was measured using a scale that identifies those areas of capability that have significant impact on the performance of small firms. Results indicate that firms involved in networks tend to adopt a double‐loop (or higher‐order) learning style, whereas non‐network firms mainly appear to be autonomous single‐loop learners. When compared with non‐network firms, respondent organisations who participate in networks tend to have a better developed, more formalised knowledge management system. Furthermore, small firm advisers perceive that the creation of a formalised knowledge management system is reflected by such firms exhibiting a higher level of organisational competence across some of the areas of marketing, HRM and information management. The implications of these findings are discussed in relation to how small firms might be assisted in becoming involved in learning networks as a path for improving their knowledge management capabilities. Some qualitative, illustrative examples of small business learning networks are provided. Additionally, proposals are presented on the need for further research.

SMEs and the Potential for A Collaborative Path to Environmental Responsibility

“…Additionally, the very characteristics that frequently drive their business endeavours, such as the strong need for personal autonomy and the preservation of the firm as an independent unit (Russo and Perrini, ), may at best be inconsistent with collaborative approaches, or at worst sabotage any efforts that might be made to encourage them to do so. However, the benefits of strategic external alliances for SMEs are well established – for example for assisting with internationalization (Coviello and Munro, ), growth and diversification (Wynarczyk and Watson, ) and information accumulation and dispersion (Chaston and Mangles, ). However, little consensus exists around the best ways for SMEs to overcome the substantial barriers they are said to face in establishing such collaborative external relationships.…”

Management development in small firms

“…One of the benefits of a network is sharing knowledge and information, and this is often a key element in the success of networks. Successful small‐business owners are often members of complex information networks (Chaston and Mangles 2000). These networks are often used to provide information that cannot be funded from their own operations.…”

Entrepreneurs learning together: The importance of building trust for learning and exploiting business opportunities

“…In such networks, participating entrepreneurs have the opportunity to individually or collectively reflect on their own and other entrepreneurs' experiences and competences (Florén 2005;Hardy et al 2003;Knight and Pye 2005;Tell 2001;Reason 1999). In this way, participating in a learning network can help entrepreneurs in their work to exploit business opportunities (see e.g., Capó-Vicedo et al 2008;Chaston and Mangels 2000;Macpherson and Holt 2007;McAdam et al 2007;Venkataraman 1997).…”