Abstract:
Today, most organizations have limitations in terms of
resources they possess internally. The
tendency therefore has been to develop some external linkages that act as conduits through
which they can gain access to those resources possessed by others. Networking can be viewed
as the process of building long te
rm contacts with the motive to have access towards
information and resources (George et al., 2001). Chetty & Wilson (2003) argue that inter
-
firm
network provide firms access to a variety of important resources and complementary skills
which leads to the b
uilding of specialized knowledge and achievement of economies of scale in
operations and collaboration to acquire greater knowledge and capabilities. Though there are
accrued benefits in regard to networking, SMEs are not motivated to seize the opportuniti
es to
networking (OECD 2004)
There is evidence from literature that network relationships play a role in the SMEs
performance. Distinct characteristics in network relationships such as structure, content and
governance significantly affect the performance
of small and medium enterprises.
