Does Inter-Organizational Networking Support Regional Development? Evidence from a Survey of Finnish Enterprises

Pajarinen MikaRouvinen Petri

Three fourths of Finnish business enterprises have relationships that are deeper than those associated with normal market transactions, i.e., they are involved in inter-organizational networking. Regionally networking is more commonplace in North Savo, North Karelia/Kainuu, Central Finland and Lapland/Northern Ostrobothnia. Connections to other firms is the most prevalent and qualitatively most important type of networking. Net-working is predominantly a local phenomenon, particularly when it comes to firms’ partner-ships with educational and research institutions as well as public bodies. Networking may be associated with better firm profitability in low-tech industries. Participating in a national cluster may be associated with firms’ better growth prospects. In the absence of functioning local markets for some productive inputs, being engaged in inter-organizational networking may be a necessary conditions for firms’ survival.

Publication info

Series
Discussion Papers no. 1157
Date
2008
Avainsanat
Verkostoituminen, yritysyhteistyö, kannattavuus, kasvu
Keywords
Inter-organizational networking, business collaboration, profitability, growth
JEL
D21,L14,L22,L25
Pages
93
Price
10 €
Availability of print version
Language
Finnish