GeorgeWoodKhan2001ERD

Development of linkages with the external environment, e.g. interlocks, is a mechanism to access scarce resources. Creating and maintaining these linkages may be an organizational capability that creates a competitive advantage for small and medium-sized enterprises (SMEs). A partial model of networking strategy is proposed, which includes measures of board composition, interlocks, entrepreneurial orientation and environmental hostility. Analysis of 70 community bank Chief Executive Offi cer (CEO) responses (58% response rate) lends support to the proposition that fi rms with a networking strategy performed better (higher return on assets (ROA) and higher return on expenditure (ROE)) than those fi rms that did not actively pursue the development of networks.

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