Punching above their weight: the changing role of networking in SMEs

Abstract

Purpose

This paper aims to draw upon the findings of a research project which investigated networking styles by owner/managers of small businesses. The authors' specific objective was to analyse the impact of such networking activities on business growth to develop a taxonomy of networking based on size, business model and attitudes of the owner to their use of online and offline networking.

Design/methodology/approach

The data in this study comes from analysis of an online survey completed by 645 firms based in both the USA and Europe. The authors compared the networking behaviours of small businesses using face‐to‐face vs online modalities, and assessed the differences between business size and home market (USA vs UK vs Europe). The data was analysed for significant differences between the responses of different classes of respondent, providing a unique taxonomy of networking across a broad geographic area.

Findings

The results identified three distinct categories of networking behaviour in terms of attitude towards scaleability and geographic reach, and the authors showed that effective online networkers tended to be good face‐to‐face networkers also.

Practical implications

The authors confirmed that effective online networkers can stay small and flexible but still “punch above their weight” in competition with larger organisations that are often more traditional in their approach and structure.

Originality/value

The authors have undertaken one of the first analyses of the circumstances in which SMEs make use of Web 2.0 tools to supplement their more conventional marketing activities, and developed a coherent framework for analysing which companies are likely to make the best use of them.

Citation

Harris, L., Rae, A. and Misner, I. (2012), "Punching above their weight: the changing role of networking in SMEs", Journal of Small Business and Enterprise Development, Vol. 19 No. 2, pp. 335-351. https://doi.org/10.1108/14626001211223937