The Impact of Formal Networking on the Performance of SMEs

Maurizio Cisi (), Francesco Devicienti (), Alessandro Manello () and Davide Vannoni
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Maurizio Cisi: Department of Management, University of Torino, Italy

No 39, Working papers from Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino

Abstract: Using a large sample of Italian small and medium enterprises (SMEs), we investigate the effect of membership in a formal business network ("contratto di rete") on firms' economic performance. We find that network participation has a positive effect on value added and exports, but not on profitability. The advantages of networking are stronger in the case of: smaller SMEs, firms operating in traditional and in more turbulent markets, firms located in less developed areas and firms not already exploiting the weaker ties offered by industrial districts. Network characteristics, such as size, geographical dispersion and diversity, are also found to influence performance.

Keywords: Formal Business Network; Small and Medium Firms; Economic Performance (search for similar items in EconPapers)
JEL-codes: D22 L24 L25 M21 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2016-11
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent, nep-eur, nep-sbm, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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http://www.bemservizi.unito.it/repec/tur/wpapnw/m39.pdf First version, 2016 (application/pdf)

Related works:
Working Paper: The Impact of Formal Networking on the Performance of SMEs (2018)
Working Paper: The impact of formal networking on the performance of SMEs (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:tur:wpapnw:039

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