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The influence of network governance mechanisms on the performance of small firms

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  • Douglas Wegner
  • Clara Koetz

Abstract

The study examines the influence of network governance on the performance of small firms, taking into consideration the effect of the network size (small, medium or large) in this relationship. To do this, a survey was carried out on 212 firms belonging to Brazilian small-firm networks (SFNs). The results indicate that network governance influences the performance of the participating members, and that the size of the network is relevant to the choice of the most appropriate governance. In large-sized networks, the centralisation of decisions and the adoption of sanctions have negative influences on performance, whereas the adoption of incentives positively influences the performance. The theoretical contribution of this paper is the identification of a dilemma inherent to increase in the number of SFN members. The SFN should be able to define governance mechanisms that ensure the efficiency and speed of decision-making processes without neglecting the individual interests of member firms.

Suggested Citation

  • Douglas Wegner & Clara Koetz, 2016. "The influence of network governance mechanisms on the performance of small firms," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 27(4), pages 463-479.
    • Handle: RePEc:ids:ijesbu:v:27:y:2016:i:4:p:463-479
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    Citations

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    Cited by:

    1. Bharat Bhushan & Raj K. Kovid & Deepa Kumari, 2020. "Entrepreneurial Networks and Venture Growth: Insights from Information Technology Firms in an Emerging Market," FIIB Business Review, , vol. 9(3), pages 205-215, September.
    2. Nuryakin & Vincent Didiek Wiet Aryanto & Mulyo Budi Setiawan, 2018. "Mediating effect of value creation in the relationship between relational capabilities on business performance," Contaduría y Administración, Accounting and Management, vol. 63(1), pages 33-34, Enero - M.
    3. Douglas Wegner & Greici Sarturi & Leander Luiz Klein, 2022. "The governance of strategic networks: how do different configurations influence the performance of member firms?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 1063-1087, September.
    4. Andrieli Vizzoto & Jorge Renato Verschoore, 2023. "What Drives Network Governance? A Microstructural Approach," International Journal of Business and Management, Canadian Center of Science and Education, vol. 17(11), pages 1-78, February.

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