Title

Networking Strategy of Boards: Correlates, Performance Effects, and Implications for Small and Medium-sized Enterprises

Publication Type

Journal Article

Publication Date

2001

Abstract

Development of linkages with the external environment, e.g. interlocks, is a mechanism to access scarce resources. Creating and maintaining these linkages may be an organizational capability that creates a competitive advantage for small and medium-sized enterprises (SMEs). A partial model of networking strategy is proposed, which includes measures of board composition, interlocks, entrepreneurial orientation and environmental hostility. Analysis of 70 community bank Chief Executive Officer (CEO) responses (58% response rate) lends support to the proposition that firms with a networking strategy performed better (higher return on assets (ROA) and higher return on expenditure (ROE)) than those firms that did not actively pursue the development of networks.

Keywords

Network strategy, SMEs boards

Discipline

Business | Entrepreneurial and Small Business Operations | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Entrepreneurship and Regional Development

Volume

13

Issue

3

First Page

269

Last Page

285

ISSN

0898-5626

Identifier

10.1080/08985620110058115

Publisher

Taylor and Francis

Additional URL

http://dx.doi.org/10.1080/08985620110058115