Modeling the relationship between networking and firm performance |
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Authors: | John Watson |
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Institution: | aDepartment of Accounting and Finance, The University of Western Australia, 35 Stirling Highway, Crawley W.A. 6009, Australia |
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Abstract: | Network theory suggests that successful business ownership might depend on the ability of owners to gain access to resources not under their control in a cost effective way through networking. To date, however, there has been little empirical support for this proposition, particularly for established firms. The results of this study, based on a large longitudinal database, indicate a significant positive relationship between networking (particularly with formal networks such as external accountants) and both firm survival and, to a lesser extent, growth, but not ROE. Further, network intensity is found to be associated with survival, and network range with growth. |
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Keywords: | Networking Survival Growth ROE SMEs |
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