The Potential and Challenge of the Network Realization Capability for SMEs in Ireland and Finland

In recognizing that the term ‘network’ can be interpreted in a multitude of ways and from a number of varying perspectives, the purpose of this article is to report the findings of a study designed to determine whether SME owner/manager see networks as an industrial relationship phenomenon. This gap, termed ‘realization capability’ refers to the SMEs’ ability to visualize the inter-organizational embedded systems that they are a part of that could enhance their marketing efforts. Bonds tie network members together and provide the context for relationships. Therefore, in measuring the level of SME realization capability the authors conceptualized the concept into social and structural bonds to ascertain the network perspective of the SME participants. To determine the level of realization of SME actors, a participatory action research method was employed in an Irish setting and compared to a control group in Finland. Findings suggest that from an Irish perspective, realization was low, highlighting that misconceptions existed amongst the SMEs regarding the nature and dynamics of networks whereby they were viewed as a predominantly personal contact structure. Conversely, the Finnish participants viewed networks as interconnected business relationships, continually operating in close collaboration with other stakeholders within their business. The findings are discussed in detail as they raise the barrier for many SMEs to participate in networks which by definition are proposed as cost effective solutions which can address many of the gaps to implementing marketing approaches by SMEs.