The Effect of Networking Behavior on the Reduction of Innovation Obstacles to Small and Medium-Sized Enterprises

Abstract

Given the crucial importance of small and medium-sized enterprises (SMEs) in the business world, it is important to study the factors which enhance their effect, including networking behaviours and innovation. Many researches have focused on business networks and innovation, but a lack of interdisciplinary studies is felt. Using questionnaires to collect data, and correlation and regression testing, this paper studies the relationship between networking behaviour and the reduction of innovation obstacles within SMEs. The role of the variables in question has been studied among 118 managers of SMEs established in Tehran University’s Science and Technology Park. The results of the study show that there is a significant relationship between networking behaviour and the reduction of innovation obstacles. The most effective parameter of networking behaviour is ‘maintaining contacts’. ‘Using contacts’ and ‘building contacts’ are in the second and third place, respectively.

Keywords: Networking behaviour, Networks, Innovation, Innovation obstacles, Small and medium-sized enterprises

JEL Classification: O31, L14