“How Can Small and Medium Size Enterprises Benefit from Social and Business Networks to Improve Their Performance?” A Single Case Study of Medi Know-How

Abstract

Small and Medium Size Enterprises (SMEs) are one of the most important contributors to global economic development and job creation (World Bank, 2021). Meanwhile, the success of SMEs depends on many different aspects such as the relationship between SMEs and their social and business networks. However, the existing literature does not elaborate on how SMEs can incorporate such business networks within their operations to improve their performance. Consequently, addressing this gap may both enrich the existing body of knowledge and possibly offer managerial implications that can help SMEs to improve their performance. The purpose of this master thesis is to fill this identified gap, hence, answering the following research question: “How can Small and Medium Size Enterprises benefit from social and business networks to improve their performance?”. This purpose is pursued through conduction of a qualitative and abductive research approach that includes an in-depth single case study of a small and medium size enterprise named Medi Know-How. Additionally, a theoretical framework of social and business networking is constructed by the authors based on the reviewed literature to interpret and analyze the empirical data. As a result, it is argued social and business networks can have a significant positive impact on an SME’s performance. However, this is the case if an SME can create, maintain, and develop social and busines networks and effectively incorporate them within its business operations. Moreover, it is concluded that by addressing different relevant aspects of social and business networking through implementation of a systematic approach such as the “ Theoretical Framework of Social and Business Networking for Small and Medium Size Enterprises” constructed by the authors of this paper, SMEs may become more effective at incorporating social and business networks to improve their performance. However, this paper has its own limitations such as the fact that it only studies one SME to answer the research question. Therefore, there is a need for future studies with regards to designing and implementing a systematic approach/framework of social and business networking by SMEs which is based on multiple case studies or that such studies can elaborate more on the impact of social and business networking on certain aspects such as SMEs’ international expansion.