Abstract
To date, there has been limited empirical research related to network theory. With this article, we have tried to fill this gap by testing an explanatory model of the impact of networks on small business growth. To analyze this causal relationship, the log-linear technique was used. The results suggest that networks have an influence on the growth of a small business, especially through contacts with national and international entrepreneurs.
Similar content being viewed by others
References
Aldrich, H. and D. A. Whetten, 1981, ‘Organisation Sets, Action Sets and Networks. Making the Most of Simplicity’, in P. C. Nyström and W. H. Starbuk (eds.),Handbook of Organisational Design, Oxford: Oxford University Press, 385–408.
Aldrich, H. and C. Zimmer, 1986, ‘Entrepreneurship Through Networks’, in D. L. Sexton and R. W. Smilor (eds.),The Art of Science of Entrepreneurship, Cambridge: Ballinger, 2–23.
Baker, W. E., 1990, ‘Market Networks and Corporate Behaviour’,American Journal of Sociology 3, 589–625.
Birley, S., 1990,Entrepreneurs Networks: Their Creation and Development in Different Countries, Cranfield: Cranfield School of Management.
Birley, S., S. Cromie and A. Myers, 1991, ‘Entrepreneuria l Networks: Their Emergence in Ireland and Overseas’,International Small Business Journal 4, 56–74.
Brown, B. and J. E. Butler, 1993, ‘Networks and Entrepreneurial Development: The Shadow of Borders’,Entrepreneurship and Regional Development 5, 101–116.
Dollinger, M. J., 1985, ‘Environmental Contact and Financial Performance of the Small Firm’,Journal of Small Business Management 1, 24–30.
Donckels, R. and K. Hoebeke, 1990, ‘Duizend KMO'ers Praten over Groei: Ook voor Jou een Leerrijke Boodschap’ (Thousand Small Businessmen Speak about Growth: Also for You an Instructive Message), in R. Donckels (ed.),Groeihefbomen in KMO's. Over Mensen, Financiering, Strategie in Familiebedrijven (Growth Levers in SMES. About People Financing and Strategy in Family Businesses), Brussels: King Baudouin Foundation, Roularta Books, Small Business Research Institute, 19–38.
Donckels, R. and E. Fröhlich, 1991, ‘Are Family Businesses Really Different? European E experiences from STRATOS’,Family Business Review 2, 149–160.
Donckels, R. and K. Hoebeke, 1992, ‘SME-Led Growth of the Belgian Economy: Fact or Fiction?’,Entrepreneurship and Regional Development 4, 155–164.
Donckels, R. and R. Aerts, 1993, ‘KMO's en Internationalisering’ (SMEs and Internationalization)’, in P. Bernard, R. Donckels, O. Martinot and G. Mols (eds.),Exportseun — Een Praktische Gids (Export Support — A Practical Guide), Brussels: Roularta Books, Kamer voor Handel en Nijverheid van Brussel, 19–39.
Donckels, R. and J. Lambrecht, 1994, ‘Netwerken en KMO-Groei: Een Verklarend Model’ (Networks and SME-Growth: An Explanatory Model),Tijdschrift voor Economie en Management 2, 71–93.
Gallo, M. A. and J. Sveen, 1991, ‘Internationalizing the Family Business: Facilitating and Restraining Factors’,Family Business Review 2, 181–190.
Gibb, A. A., 1993, ‘Key Factors in the Design of Policy Support for the Small and Medium Enterprise (SME) Development Process: An Overview’,Entrepreneurship and Regional Development 5, 1–24.
Hagenaars, J. A., 1990,Categorical Longitudinal Data: Log-Linear Panel, Trend and Cohort Analysis, California: Sage Newbury Park.
Holt, D. H., 1987, ‘Network Support Systems: How Communities Can Encourage Entrepreneurship?’, in N. C. Churchill, J. A. Hornaday, B. A. Kirchhoff, O. J. Krasner and K. H. Vesper (eds.),The Frontiers of Entrepreneurship Research, Wellesley: Babson College, 44–56.
Jarillo, J. C., 1988, ‘On Strategic Networks’,Strategic Management Journal 1, 31–41.
Johannisson, B., 1986, ‘Network Strategies: Management Technology for Entrepreneurship and Change’,International Small Business Journal 1, 19–30.
Johannisson, B., 1988, ‘Business Formation: A Network Approach’,Scandinavian Journal of Management 31, 83–99.
Johannisson, B., 1990a,Building an Entrepreneurial Career in a Mixed Economy: Need for Social and Business Ties in Personal Networks, Paper presented at the annual meeting of the Academy of Management, San Francisco.
Johannisson, B., 1990b, ‘Economies of Overview-Guiding the External Growth of Small Firms’,International Small Business Journal 1, 32–44.
Kaufman, R. L. and P. G. Schervish, 1986, ‘Using Adjusted Crosstabulations to Interpret Log-Linear Relationships’,American Sociological Review 51, 717–733.
Marchesnay, M., 1988, ‘La Mercatique de la Petite Entreprise’, (Marketing of the Small Enterprise),Revue Internationale PME 3–4, 256–277.
Mitchell, J. C., 1973, ‘Networks, Norms and Institutions’, in J. Boissevain and J. C. Mitchell (eds.),Network Analysis: Studies in Human Interaction, Den Haag: Mouton.
Paasche, T., A. Petterson and G. Solem, 1993, ‘Network Theory — A Critical Review’, in M. Virtanen (ed.),The Development and the Strategies of SMEs in 1990s, Mikkeli: Helsinki School of Economics and Business Administration, 175–187.
Szarka, J., 1990, ‘Networking and Small Firms’,International Small Business Journal 2, 10–22.
Tjosvold, D. and D. Weicker, 1993, ‘Cooperative and Competitive Networking by Entrepreneurs: A Critical Incident Study’,Journal of Small Business Management 1, 11–21.
Welsch, H. P. and E. C. Young, 1982, ‘The Information Source Selection Decision: The Role of Entrepreneurial Personality Characteristics,Journal of Small Business Management 4, 49–57.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Donckels, R., Lambrecht, J. Networks and small business growth: An explanatory model. Small Bus Econ 7, 273–289 (1995). https://doi.org/10.1007/BF01108617
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/BF01108617