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.
Network strategy, SMEs boards
Business | Entrepreneurial and Small Business Operations | Strategic Management Policy
Strategy and Organisation
Entrepreneurship and Regional Development
Taylor and Francis
GEORGE, Gerard; WOOD, D. Robley; and KHAN, Raihan.
Networking Strategy of Boards: Correlates, Performance Effects, and Implications for Small and Medium-sized Enterprises. (2001). Entrepreneurship and Regional Development. 13, (3), 269-285. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/4637
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