Networking strategy of boards: implications for small and medium-sized enterprises

Gerard George, D. Robley Wood and Raihan Khan

Entrepreneurship & Regional Development, 2001, vol. 13, issue 3, 269-285

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.

Date: 2001
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DOI: 10.1080/08985620110058115

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