The role of networks in small firm competitiveness
by Edward J. Malecki, Deborah M. Tootle
International Journal of Technology Management (IJTM), Vol. 11, No. 1/2, 1996

Abstract: Contact networks as a means of obtaining external information are a well-accepted aspect of firm behavior. For large firms, formal ties, such as strategic alliances and joint ventures, are common, but for small firms more flexible, informal connections are the norm. In addition, semi-formal flexible manufacturing networks have evolved within the US as a means for firms to identify similar and compatible firms for cooperative activities. This paper examines the behaviour of firms with regard to the role played by networks in information flow and, at least speculatively, in firm competitiveness. Data come from interviews with firms throughout the US, in both rural and urban settings. Formal networks may be less critical in urban agglomerations, where proximity may provide advantages through informal interactions. Comparisons with industrial districts in Europe provide scope for understanding the role of information in firm behaviour.

Online publication date: Fri, 22-May-2009

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