Exploring SMEs’ qualitative growth and networking through formalization
ISSN: 1059-5422
Article publication date: 19 May 2020
Issue publication date: 19 June 2020
Abstract
Purpose
This paper aims to analyze the role of networking through formalization, namely, the adoption of specific contractual forms, in triggering small- and medium-sized enterprises (SMEs’) qualitative growth. The paper adopts an approach to SMEs’ growth that stresses the multi-dimensionality nature of the concept, which includes not only size but also relationship and capability growth.
Design/methodology/approach
A qualitative methodology is used, based on the study of cases of SMEs from an Italian fashion district, connected by a specific contractual form – the so-called “network contract” (NC) – promoted by the national government. Two cases of NCs are presented, a vertical and a horizontal network.
Findings
The paper highlighted the positive influence of NCs, intended as a managerial strategy not only aimed at collaboration, on the growth paths of SMEs but also stressed that the influence of NCs cannot be isolated, but acts virtuously together with other variables. Such variables include entrepreneurs’ and managers’ individual traits, the context – industrial district in the two cases under study – in which SMEs operate, the presence of an external actor that stimulates the adoption of NCs.
Originality/value
The focus on qualitative growth, which can be triggered by the formalization of business relationships through contractual forms, contributes to the debate on the nature and content of SMEs’ growth. The awareness of the variables that contribute to SMEs’ growth is crucial for both entrepreneurs and institutional actors who want to create the conditions to undertake paths of qualitative growth.
Keywords
Citation
Milanesi, M., Guercini, S. and Tunisini, A. (2020), "Exploring SMEs’ qualitative growth and networking through formalization", Competitiveness Review, Vol. 30 No. 4, pp. 397-415. https://doi.org/10.1108/CR-10-2019-0103
Publisher
:Emerald Publishing Limited
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