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International Small Business Journal
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Strategic Networking among Small Businesses in Small US Communities

Nancy J. Miller

University of Nebraska-Lincoln, USA, nmiller3{at}unl.edu

Terry Besser

Iowa State University, USA, tbesser{at}iastate.edu

Avinash Malshe

University of St Thomas, USA, amalshe{at}stthomas.edu

Social capital and strategic network theory formed the basis for examining antecedents, impacts, and outcomes of formal networks organized for enhancing small community business success. Qualitative data derived from field interviews with small business network directors and members were used to identify five theoretical constructs and the potential relationships among those constructs.With insight from the interviews, hypotheses were derived and tested with quantitative data gathered via a telephone survey instrument with 377 small business owners who held membership in 1 of 29 networks operating in small communities across four Midwest states. Owners characterized their businesses as successful and likely to grow. Results of EQS modeling suggested that shared vision and resource sharing among network members significantly benefited members' businesses, and that these benefits were associated with a generalized perception of the advantages of network membership and positively affected members' future participation plans, thus furthering the likelihood of network continuance.

Key Words: networks • small community development • small firms • social capital • strategic networking

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International Small Business Journal, Vol. 25, No. 6, 631-665 (2007)
DOI: 10.1177/0266242607082525
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