Networking Performance: A study of the benefits of business networking in the West Midlands

Abstract

Abstract Research on business networks has traditionally focussed on understanding the nature of relationships in networks but seldom the outcomes from business networking activities. This thesis examines the benefits from business networking from the perspective of firms in the West Midlands and explains the factors which improve networking performance. Networking is hailed by academics and marketing practitioners as a way to improve business performance. Firms are encouraged to invest resources in networking activities, without necessarily being able to measure the result. Researchers following in the ‘markets as networks’ tradition have identified understanding the benefits from business networking activities as a subject for further investigation. Using survey data from 298 firms in the West Midlands, the findings show that strength of relationship, planned networking behaviour and networking intensity to be significant indicators of networking performance. Analysis also shows degree of embeddedness to have a mediating effect on networking performance. This study provides empirical support for the idea that firms which adopt a systematic approach to business networking achieve better outcomes in terms of networking performance when measured as a percentage of sales turnover, compared to firms adopting an ad-hoc approach to networking. This study contributes to the marketing and markets as networks literature as well as advancing the conceptualisation of networking performance measured in terms of sales turnover. The thesis offers insights from the focal firm’s perspective as to why business networking is important and identifies factors which contribute to positive networking outcomes and a measure of networking performance