The nature of networking in small firms

O’Donnell, Aodheen

doi:10.1108/13522750410540218

Cited by 92 publications

(95 citation statements)

References 47 publications

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“…Networking in SMEs varies in different dimensions that could be classified into (1) level of networking, (2) strength of network ties, and (3) networking proactivity (O'Donnell, 2004) on the continuum. The level of networking refers to the range of the network and it should be positively connected to the companies' ownership (Birley et al, 1991;Burns & Dewhurst, 1996).…”

Section: Characteristics Of Network In Smesmentioning

confidence: 99%

How does Networking Impact the SMEs Growth

Širec

Bradač

2009

Organizacija

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Today's market conditions are forcing companies to adapt to changes in order to survive, grow and be competitive. Such changes include inter-company cooperation and networks, which allow for competition and innovation in a dynamic environment. Today, almost all industries are affected by the evolution of networking relationships within and between firms; however, previous studies have revealed that companies differ in their competitive strategies, strategic and technological orientation, and methods of networking. Most of these studies have linked networking with performance, with less empirical evidence on linking networking in SMEs with company growth. Previous research has also shown that entrepreneurial potential in Slovenia is not fully utilized. For this reason, the presented paper investigates a networking in SMEs and its contribution to the companies' growth.

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Section: Characteristics Of Network In Smesmentioning

confidence: 99%

How does Networking Impact the SMEs Growth

Širec

Bradač

2009

Organizacija

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“…According to O'Donnell [49], it is essential to have adequate information on the cost of similar goods and services by rival business operators.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of Factors That Affect the Long-Term Survival of Small Businesses in Pretoria, South Africa

Worku¹

2013

JDAIP

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The paper is based on a 5-year follow-up study (2007 to 2012) of a random sample of 349 small business enterprises that operate in and around the city of Pretoria in South Africa. Data were gathered from each of the businesses on socioeconomic factors that were known to affect the long-term survival of small businesses. The objective of the study was to identify and quantify key predictors of viability and long-term survival. Pearson's chi-square tests of associations, binary logistic regression analysis and the Cox Proportional Hazards Model were used for screening of variables, and for estimating odds ratios and hazard ratios of key predictors of viability and long-term survival. The study found that 188 of the 349 businesses that took part in the study (54%) were not viable, and that the long-term survival and viability of small businesses were adversely affected by lack of entrepreneurial skills, lack of supervisory support to newly established businesses, and inability to operators running newly established businesses to acquire relevant vocational skills.

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“…The results strongly supported the hypothesis, H7 on the basis of the significant positive regression coefficient (β = 0.629 or 62.9 percent and t-value = 14.53). A large number of studies (Baker, 1990;Bouzdine and Lorgnier, 2004;Burt, 2000;Donnell, 2004;Granovetter, 1983;Jones et al, 1997;Ting et al, 2007) empirically confirmed that network structure plays an important role in sharing information which leads to improve rational ability (mitigate bounded rationality). The results of this study further strengthen the idea of Coleman (1988) who explained that dense network exchanges information among members.…”

Section: Resultsmentioning

confidence: 99%

Effect of Network Structure on Transaction Cost of Small Enterprises in Sri Lanka: An Empirical Study

Priyanath¹

2017

JSBED

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Prime objective of this study is to explore how different dimensions of network affect the Transaction Cost (TC) of Small Enterprises (SEs) in Sri Lanka. The data were collected from 376 SEs in Sri Lanka, conducting face to face personal interviews with respondents. The data were analysed using Partial Least SquaresStructural Equation Modelling. The results revealed that network density and size have significant negative effect on TC of SEs. Both have a negative significant impact on opportunism of exchange partners, positive significant effect on rational ability of the Owners of Small Enterprises (OSEs), significant negative impact on transaction uncertainty and positive significant impact on transaction frequency. Thus, the study provided sufficient evidences to conclude that network structure has a significant impact on mitigating TC of SEs in Sri Lanka. The study provides important insights for SEs and policy makers to forces their strategies to develop SEs strengthening network relationship between SEs and different stakeholders.

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The nature of networking in small firms

Cited by 92 publications

References 47 publications

How does Networking Impact the SMEs Growth

How does Networking Impact the SMEs Growth

Analysis of Factors That Affect the Long-Term Survival of Small Businesses in Pretoria, South Africa

Effect of Network Structure on Transaction Cost of Small Enterprises in Sri Lanka: An Empirical Study

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