- Title
- Impact of networking on firms' export performance: the case of SMEs in New South Wales, Australia
- Creator
- Rahman, Mohammad
- Relation
- University of Newcastle Research Higher Degree Thesis
- Resource Type
- thesis
- Date
- 2013
- Description
- Research Doctorate - Doctor of Philosophy (PhD)
- Description
- The objective of this study is to examine the effect of networking on the export-specific and overall performance of small to medium-sized enterprises (SMEs) in New South Wales (NSW), Australia. Globalisation and the emergence of information technology have been reshaping businesses and how they operate in the contemporary competitive market. Meanwhile, SMEs face critical survival challenges in a dynamic landscape. Subsequently, through networking, SMEs seek access to the necessary resources. The aim of this study is to empirically test the resource-based network (RBN) model, and the degree of influence that network resources have on competitive advantages (to both SMEs and networks), as well as the influence of network resources on SMEs’ export-specific and overall performance. This study builds on organisational characteristics and the resource-based view (RBV) perspectives that offer an innovative approach to the development and implementation of networking strategies for SMEs. To help establish this theoretical link, a functionalist positivist study was conducted. To meet this study’s research objectives, a quantitative method was employed. An internet panel administered survey was conducted, involving 298 SMEs and using a structured questionnaire. The data were analysed using the statistical package, SPSS 19. Partial least squares path analysis (using SmartPLS) was used to investigate the cause–effect relationships between network resources, competitive advantages and overall performance. The findings support the proposed model and demonstrate that network resources and shared vision provide competitive advantages to SMEs, as well as collaborative competitive advantages to the network. The findings suggest the following. First, network SMEs perform better than non-network SMEs in terms of export intensity (export sales/total sales). At the same time, network SMEs are heavily involved in innovation, which has a positive relationship with overall performance. Second, the results indicate that organisational characteristics influence the network development of NSW SMEs. The firms’ size, network size, network portfolio, network involvement and participation were particularly significant in determining the overall performance of the SMEs. Third, the results demonstrate that key network resources—such as sharing the cost of training employees and cost of consultants, along with research and development, export, production, human resources and financial support—are instrumental in gaining competitive advantages over competitors. This study provides strong empirical evidence to suggest that to improve export-specific and overall performance, there is a need to enhance the cooperative environment for SMEs. This could be achieved through more transparent government policy, promoting coherence among state and federal agencies, supporting SME network development, and sustaining long-term network visions among SMEs. This study contributes managerial implications for cooperation that involve SMEs and have important implications for researchers and policymakers. This study demonstrates the significant competitive advantages and profitability outcomes that arise from networking. Therefore, this study suggests that industry and government agencies should direct more resources and energy towards promoting, showcasing and encouraging networking. Networking is generally cheaper to uptake and can be operationalised much more rapidly than direct economic assistance, and could lead to the growth of more competitive and profitable SMEs.
- Subject
- small to medium size enterprises; resource based view; networking; export performance
- Identifier
- http://hdl.handle.net/1959.13/1039396
- Identifier
- uon:13643
- Rights
- Copyright 2013 Mohammad Rahman
- Language
- eng
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| Thumbnail | File | Description | Size | Format | |||
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| View Details Download | ATTACHMENT01 | Abstract | 360 KB | Adobe Acrobat PDF | View Details Download | ||
| View Details Download | ATTACHMENT02 | Thesis | 2 MB | Adobe Acrobat PDF | View Details Download |