Finding the hidden value in SME networks
by Rian Van Der Merwe, Leyland Pitt, Bradley R. Barnes, Pierre R. Berthon, Esmail Salehi-Sangari
International Journal of Enterprise Network Management (IJENM), Vol. 2, No. 2, 2008

Abstract: Drawing on both social network and social capital theory, this study explores the formation of 'elusive ensembles' on the internet in BioTech Small and Medium-Sized Enterprises (SMEs). Social network and structural hole theories are combined to identify the social capital associated with a network, and this in turn is used to signal entrepreneurial opportunity. Interestingly the findings outline areas where better network coordination is possible. Specifically, the research suggests that entrepreneurial opportunities exist (1) to develop better relationships with those key actors who can exert influence on the network and (2) for enhancing value in the distribution channel by taking on the role as a network intermediary where suitable.

Online publication date: Fri, 11-Jan-2008

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