Strategic networking and growth of technology-oriented SMEs : evidence from Singaporei

This paper outlines the findings of a study of 112 technology-oriented small to medium sized enterprises (SME) in Singapore in relation to the role played by strategic networks and alliances in their development and growth. A logistic regression model was built with a dichotomous dependent variable measuring high or low average annual sales growth, and independent variables measuring the range, intensity and richness of strategic alliances held by the firm across the production, resource and social network layers. Findings suggest that firm growth is independent of the network range, but predicted by the intensity (frequency of contact) and the “richness” of relationships within the production network layer (e.g. with customers and suppliers). The study indicates that the capacity of the entrepreneur to build strategic relationships that are commercially valuable is of more importance than the type and size of a strategic network in predicting firm growth.