Empirical study about the role of social networks in SME performance

Franco, Mário; Haase, Heiko; Pereira, Ana

doi:10.1108/jsit-06-2016-0036

Cited by 35 publications

(22 citation statements)

References 47 publications

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“…The significance of networking and its impact on the performance of SMEs has been highlighted in a number of studies (Franco et al, 2016;Chung et al, 2015;Chen et al, 2015;De Hoyos-Ruperto et al, 2013;Wincent et al, 2009;Watson, 2007; …”

Section: Resultsmentioning

confidence: 99%

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Performance of SMEs in Tangier: the interface of networking andwasta

Sefiani

Davies

Bown

et al. 2018

EMJB

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Purpose -The aim of this study is to investigate the impact of networking on business performance by uncovering particular and significant methods of pursuing business connections, for small and medium enterprises (SMEs) in Tangier.Prior Work -The significance of networking and its impact on the performance of SMEs was revealed in a number of studies. Whilst these studies provide important insights about networking, it can be noted that there are potentially significant differences in the concept of networking in the Arab business world about which relatively little is known.Approach -A two-stage design, which incorporated both quantitative and qualitative approaches, was employed in this study. Approaches were employed in succession with the findings from the quantitative phase informing the qualitative phase. Initially, a paper and online survey questionnaire was administered to a population of 365 industrial SMEs to gain some insights on the perceptions of owner-managers of the impact of networking on business performance. Following the quantitative phase, fifteen in-depth face-to-face semi-structured interviews were conducted with selected owner-managers of SMEs, forming a judgmental selection, to explore their experiences, beliefs, and attitudes with respect to networking factor.Results -Both quantitative and qualitative phases of the study found that networking was a significant factor in influencing the success of SMEs. The concept of 'wasta', the Arabic word for connections, emerged from the qualitative phase. Findings show that using 'wasta', through politico-business networks is important since it enables access to current information that is crucial for the success of SMEs. The concept of 'wasta' was also mentioned in relation to financial resources and suppliers. Findings revealed that strong relationships with suppliers enable firms to get financial resources in the form of trade credits. Furthermore, the relationship between 'wasta' and human resources was also revealed. Findings showed that ownermanagers use their network relations through 'wasta' in order to recruit their staff.Implications -The findings of this study add to the understanding of networking in Arabic countries with the importance of 'wasta' in an economy that functions on relationships. The findings of this study could therefore be useful to international managers to assist their intercultural effectiveness by adjusting to culture-specific networking in Tangier.Originality / Value -This study is among those few studies located in the Middle East North Africa (MENA) region that explore the performance of SMEs from the perceptions of ownermanagers themselves, and not based on aggregate or economic data. It supports previous findings of several studies and contributes additional evidence that suggests the significance of 'wasta' and its impact on SME success.

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Section: Resultsmentioning

confidence: 99%

“…As Franco, Haase and Pereira (2016) observed, 'new opportunities and benefits have been opened up to firms and the population in general, given the ease of communication and the speed with which information is spread.' (p 3).…”

Section: Literature Reviewmentioning

confidence: 99%

Performance of SMEs in Tangier: the interface of networking andwasta

Sefiani

Davies

Bown

et al. 2018

EMJB

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“…The main objective was to ascertain the motives for adhering to social networks and to understand if this type of network influences performance in this sector. The results obtained concluded that the SMEs studied are connected to social networks, especially Facebook and the motives associated with cost reduction influence both financial indicators (profit growth) and non-financial indicators (human resource results), while communication and innovation influence only non-financial performance (level of satisfaction) [17]. In another recent paper, Montecchi shows through a series of semi-structured interviews the connection between social media and user generated content, and also the link of this last one and co-innovation, in an enterprise's success [18].…”

Section: Literature Review On Related Topicsmentioning

confidence: 96%

A Perspective Over Modern SMEs: Managing Brand Equity, Growth and Sustainability Through Digital Marketing Tools and Techniques

et al. 2019

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On their way towards assuring growth and long-term sustainability, many modern small and medium sized enterprises (SMEs) from the European Union have set building a stronger brand as one of their primary goals. To achieve this, an integrated framework for managing the continuous enhancement of their brand equity level by adopting digital marketing tools and techniques (DMTTs), has increasingly become a necessity for most of the modern SMEs. However, even if such an approach provides plenty of benefits, such as better audience targeting and reduction of traditional marketing expenses, implementing these complex processes in their business models poses a series of challenges like choosing the best selection of DMTTs. For this reason, a conceptual model is proposed in the first part of the paper, with the aim to highlight a framework that will help underline the links between DMTTs and other key elements that can provide an increase in brand equity of SMEs, thus contributing to growth and enhancing the sustainability level. Following the proposed model, research aimed at two main directions has been conducted in the second part. The first direction was to analyze the degree in which modern SMEs from the European Union located in Romania dedicate themselves toward embracing sustainability goals and principles. The second one represents an analysis using also the SPSS software solution on the most used selections of DMTTs mentioned in the presented conceptual model. The results obtained provide a starting point for those modern SMEs that choose to follow the path of sustainability by creating and enhancing their brand equity through DMTTs.

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“…Networks are vital to a firm, especially SMEs, which inherently have a shortage of internal resources. Due to their finite resources, they use a variety of sources and are connected to different networks to acquire the information to develop the business strategy [19]. Networks provide its actors with access to network resources such as information, management skills, equipment, technology, etc.…”

Section: Network Structure and Performancementioning

confidence: 99%

The Effect of Network Structure on Performance in South Korea SMEs: The Moderating Effects of Absorptive Capacity

Choong-Hyun

Lee

2018

Sustainability

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This study has analyzed how the network structure (density, centrality) affects the performance (convergence, overall) in Small and Medium-Sized Enterprises (SMEs) with the different business exchange activities. In addition, we conducted a moderating effect of absorptive capacity (ability, motivation). Based on previous literature about the network and absorptive capacity, research hypotheses were developed and tested using a sample of 226 SMEs in South Korea. The results show that network density and centrality have a positive effect on perceived convergence and overall performance. These results are consistent with previous network studies relating to structural characteristics. To raise total performances in firms with different business exchange activities, they need to enhance density and centrality. For example, firms with different business exchange activities and high levels of density and centrality are able to easily obtain various types of information from other members of 7000 firms in Korea. Through this, they can improve performance. We also conducted the moderated regression analysis. The results show that employee ability has a positive moderating effect on the relationship between centrality and the overall performance while employee motivation has a negative moderating effect. The implications and directions for future study along with limitations are presented.

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Empirical study about the role of social networks in SME performance

Cited by 35 publications

References 47 publications

Performance of SMEs in Tangier: the interface of networking andwasta

Performance of SMEs in Tangier: the interface of networking andwasta

A Perspective Over Modern SMEs: Managing Brand Equity, Growth and Sustainability Through Digital Marketing Tools and Techniques

The Effect of Network Structure on Performance in South Korea SMEs: The Moderating Effects of Absorptive Capacity

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