Abstract
Networking has been found to be an important source of SME’s growth and development, both in developed and developing countries. This study discusses the importance of networking in the context of Rwanda’s SMEs. Literature on firm growth and business networks discusses networks that the SMEs are involved in, and how these networks help them grow. This study which is set in the context of a developing country follows a case study approach in studying SMEs. Using a cross-case analysis, its findings show that networks remain important and contribute toward the growth of SMEs because they help them address most of their identified growth challenges. However, networks can address some but not all growth challenges and they can address these challenges differently for different SMEs. One case in this study brought together players that would not have been able to meet without the networks. Hence, the study suggests that complementary solutions need to be found for addressing all growth challenges faced by SMEs holistically.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Achtenhagen, L., Brunninge, O., & Melin, L. (2017). Patterns of dynamic growth in medium-sized companies: Beyond the dichotomy of organic versus acquired growth. Long Range Planning, 50, 457–471.
Axelsson, B., & Easton, G. (1992). Industrial networks—A new view of reality. London and New York: Routledge.
Barr, A. (1999). Do SMEs network for growth? In K. King, & S. A. McGrath (Eds.), Enterprise in Africa: Between poverty and growth (Vol. 121, No. 131, pp. 121–131). London: Intermediate Technology Development Group Publishing.
Biggiero, L. (2001). Self-organization process in building entrepreneurial process; A theoretical and emprical investigation. Human Systems Management, 20(3), 209–222.
Chell, E., & Baines, S. (2000). Networking, entrepreneurship and microbusiness behaviour. Entrepreneurship and Regional Development, 12(3), 195–206.
Covin, J. G., & Slevin, D. P. (1991). A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice, 16(1), 7–26.
Davidsson, P. (1989). Continued enterpreneurship and small firm growth. Stockholm: Ekonomiska Forskningsinstitutet.
Donatus, M. (2011). Challenges and barriers facing entrepreneurship development through public investment: A case of millenium development villages project Mayange. Rwanda: Mastricht School of Management (MSM-Rwanda Campus).
Emerson, R. M. (1976). Social exchange theory. Annual Review of Sociology, 2(1), 335–336.
Ghauri, P., Lutz, C., & Tesfom, G. (2003). Using networks to solve export-marketing problems of small-and medium-sized firms from developing countries. European Journal of Marketing, 37(5/6), 728–752.
Groen, A. (2005). Knowledge intensive entrepreneurship in networks, towards a multi-level/multi dimensional approach. Journal of Enterprising Culture, 13(01), 69–88.
Gustafsson, J. (2017). Single case studies vs. multiple case studies: A comparative study.
Håkansson, H. (1989). Corporate technological behavior; Co-operation and networks. London: Routledge.
Håkansson, H., & Ford, D. (2002). How can companies interact in business networks? Journal of Business Research, 55(2), 133–139.
Havnes, P.-E., & Senneseth, K. (2001). A panel study of firm growth among SMEs in networks. Small Business Economics, 16(4), 293–302.
Johannisson, B., Alexanderson, O., Nowicki, K., & Senneseth, K. (1994). Beyond anarchy and organization-entrepreneurs in contextual network. Entrepreneurship and Regional Development, 6(4), 329–356.
Mazzarol, T. (1998). Partnerships—A key growth in small businesses. In 43rd ICSB Conference. Singapore.
MINICOM. (2010). Small and medium entrprises (SMEs) development policy. https://www.minicom.gov.rw/fileadmin/minicom_publications/policies/SME_Devt_policy_V180610.pdf.
Premaratine, S. (2001). Networks, resources and small businesses growth. Journal of Small Business Management, 39(4), 363–371.
Schulenburg, D. (2006). Promoting business linkages—Overview and tool. Deutsche Gesellschaft für.
Senik, C., Brenda, S. L., Entrekin, L., & Adham, K. A. (2011). Networking and internationalization of SMEs in emerging economies. Journal of International Entrepreneurship, 9(4), 259–281.
Širec, K., & Bradač, B. (2009). How does networking impact SMEs growth. Organizacija, 42(2), 59–66.
Tambunan, T. (2008). SME development, economic growth, and government intervention in a developing country: The indonesian story. Journal of International Entrepreneurship, 6(4), 147–167.
UNCTAD. (2010). Creating business linkages—A policy perspective. Geneva: United Nations.
Wang, Y. (2016). What are the biggest obstacles to growth of SMEs in developing countries?—An empirical evidence from an enterprise survey. Borsa Istanbul Review, 16(3), 167–176.
Welter, F. (2011). Contextualizing entrepreneurship—Conceptual challenges and ways forward. Entrepreneurship Theory and Practice, 35(1), 165–184.
Wincent, J. (2005). Does size matter? A study of firm behavior and outcomes in strategic SME networks. Journal of Small Business and Enterprise Development, 12(3), 437–453.
Yin, R. K. (1994). Case study research design and methods (3rd ed.). London: Sage.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix
Appendix
Interview Guide
Title: Business Networks and SMEs’ Growth in Rwanda
Part 1: Researchers’ Introduction
Dear Respondent,
I am Olivier MUGWANEZA, a researcher as well as an Academic Staff at the University of Rwanda College of Business and Economics (UR-CBE) and Associate Professor Olof BRUNNINGE is a researcher as well as an Academic Staff in the Jonkoping International Business School (JIBS)/Sweden.
In collaboration with the University of Rwanda and the Jonkoping International Business School (JIBS), we are conducting a research that explores the role of business networks for SMEs’ growth in Rwanda. “Business networks” can be relevant in facilitating SMEs’ growth. Hence, the main purpose of this study is understanding how business networks have helped SMEs to grow. Your firm has been chosen as one of our cases for study and we want to interview you to get detailed information. The interview will last one hour at the most.
After the interview, I will leave my contact details in case you need to know more about this research.
Part 2: General Information
-
1.
Could you please introduce yourself?
-
2.
What is your position in the company?
-
3.
How long have you been working in this company?
Part 3: Background of the Company
-
4.
When did the company start to operate? Please tell us a bit about how it has developed since then.
-
5.
What activities/businesses does the company carry out?
-
6.
Who are your main suppliers?
-
7.
Who are you main customers?
-
8.
Do you have other stakeholders that are important to your company?
-
9.
What do you think are your strengths as a company? And what are your weaknesses?
Part 4: Business Networks
-
10.
Is your company involved in any kind of relationship with other companies or institutions? Please tell us about these relationships, with whom you have them, what they are about and for how long they have been going on.
-
11.
Could you please describe for us the type of relationship you have with these companies? (Customer or supplier relationship? Ownership network? Partnership? ………….)
-
12.
Do you have personal contacts or relationships that are important for your business? IF yes, can you please describe those relationships to us and how important they are for your company?
Part 5: Business Networks and SMEs Growth
-
13.
Is it important for you that your business grows? IF so, why is this important?
Do relationships with other organizations help you growing?
-
Do they bring new business to you? How?
-
Do they help you to get access to finance? How?
-
Do they help you to get access to new technology? How?
-
Do they help you acquire management skills? How?
-
-
14.
How much value addition in your company can be attributed to engaging in business networks? Or to what extent do you think you have grown after entering into networks?
-
15.
What do you think networks should be helping you but is not happening now?
-
16.
How do you think networks can be structured to be more beneficial to your company?
-
17.
How do you compare your company with an SME in Rwanda that does not have networks?
-
18.
Is there anything else that you think can be helpful in our research as far as networks are concerned?
Thank you very much for your time!
Rights and permissions
Copyright information
© 2020 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Mugwaneza, O., Brunninge, O. (2020). Business Networks and Small and Medium Enterprise Growth in Rwanda. In: Das, G., Johnson, R. (eds) Rwandan Economy at the Crossroads of Development. Frontiers in African Business Research. Springer, Singapore. https://doi.org/10.1007/978-981-15-5046-1_7
Download citation
DOI: https://doi.org/10.1007/978-981-15-5046-1_7
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-15-5045-4
Online ISBN: 978-981-15-5046-1
eBook Packages: Business and ManagementBusiness and Management (R0)