Networking capability: the competitive advantage of small firms
Year: 2003
Type: book-chapter
Abstract: An investigation of the ways in which personal contact networks help small businesses to achieve competitive advantage is presented, along with recommendations for the development of more synchronous support mechanisms.Following a review of research indicating that learning and performance improvement are highly social processes, a case study of an English joinery with a staff of approximately forty people is described. Conducted in 2000, the case study involved six in-depth interviews with the company's owner-manager and a single interview with each of six actors (including his landlord, his father, an accountant, an architect, an owner of adjacent land, and a solicitor) from within his network.The actors were asked to describe their role in the owner-manager's decision not to sell his business.The interviews supported the hypothesis that owner-manager personal networks influence decision-making processes. A small or medium-sized enterprise (SME) owner-manager may lead his or her company to competitive advantage by developing and managing a relationship network proactively. Owner-managers should strive for a clearer understanding of their networks by asking themselves probing questions about the strength and diversity of those networks. (SAA)
Authors: David Taylor, Krsto Pandža
Institution: University of Leeds
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2272292276