Title: Networks within networks - interaction in bioenergy business

Authors: Kirsi Kokkonen; Tuomo Kässi; Ville Ojanen

Addresses: School of Industrial Engineering and Management, Lappeenranta University of Technology, P.O. Box 20, FIN-53851, Lappeenranta, Finland ' School of Industrial Engineering and Management, Lappeenranta University of Technology, P.O. Box 20, FIN-53851, Lappeenranta, Finland ' School of Industrial Engineering and Management, Lappeenranta University of Technology, P.O. Box 20, FIN-53851, Lappeenranta, Finland

Abstract: Collaboration is seen as one of the most important means for small and medium-sized enterprises (SMEs) to compete and innovate in dynamic business environments. This paper approaches this phenomenon by studying a group of Finnish biomass heating firms and their interaction in the bioenergy business. In this paper, two frameworks are combined into a practical two-level tool for relationship and network analysis. This paper offers detailed information on the formation of partnerships and networks around the bioenergy business. Moreover, it speculates about the motives and mechanisms behind an actor's business relations. This study confirms that it is often profitable for SMEs to act simultaneously in different types of networks. In these networks, the firms form relationships that are different in breadth and depth.

Keywords: networking; inter-firm relationships; small and medium-sized enterprises; SMEs; bioenergy; biomass heating; Finland; collaboration.

DOI: 10.1504/IJBE.2014.064981

International Journal of Business Environment, 2014 Vol.6 No.4, pp.351 - 372

Received: 16 Sep 2013
Accepted: 16 Oct 2013
Published online: 30 Sep 2014 *

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