Small and medium sized enterprises and knowledge networks: an initial analysis of the roles of external supporting organisations

This paper presents research examining the effects of network interaction and small medium sized enterprise (SME) performance, with particular regard to the accessing of knowledge for innovation. Economic development policy is increasingly focused on SMEs, creating a clear research issue in terms of the roles and interactions of support bodies and the creation and dissemination of innovation. This paper thus analyses the contribution of a range of external supporting institutions in an innovation creation and dissemination framework - exploring the contribution of networks, and identifying the mechanisms required therein. Bivariate and multivariate (regression) analyses are employed to investigate outcomes in relation to these structures; data is derived from survey responses of over 450 UK SMEs. Results on the conscious use of relational embeddedness show this to be an important indicator of SME performance, but not universally so. In general, we find less support for the factors predicting SME growth outcomes than is the case for innovation. Finally, we outline an agenda for further research in the area.