Friends with benefits : an investigation into the social dynamics of network creation in the born-global SME

Abstract

Previous literature on the social dynamics of network creation in enterprises has drawn a sharp division between the utility of personal and professional networks. This has been particularly marked in social network analysis of born-global SMEs operating in emerging markets and seeking to internationalise. Using the case study of International Housing Solutions (Pty) Ltd (IHS) – a born global SME with both a global and a regional network – this research creates a deeper and more nuanced understanding of what such networks look like, what human factors are key to their operation, and what the relative importance is of the personal and professional drivers of networking.The study employs a mixed-method research design including network mapping and both qualitative and quantitative analysis of questionnaire responses from 35 participants in the IHS network, providing both hard data and rich qualitative insights into the ingredients and processes required for effective networking in such an enterprise.The results provide robust evidence for crossover between professional and personal networking activities; both are equally relevant in enabling the born-global SME to grow networks, increase innovation and enter otherwise impenetrable markets. Though the weighting of networking attributes is marginally different – for personal networks, the key attributes are advice, trust, friendship and communication; for professional networks, knowledge and referrals – in practice, both the personal and the professional are assimilated into a single complex of network activity and cannot be viewed in isolation.The research thus contributes innovative findings to a hitherto under-researched aspect of networking in the born-global SME.