Networking and innovation in SMEs: evidence from Guangdong Province, China

Purpose - This paper aims to investigate structural characteristics of a business network comprising small and medium-sized enterprises (SMEs), and to explore the relationships between such network characteristics and innovative capabilities of the participating firms. Design/methodology/approach - This paper adopts a survey approach and conducts empirical analysis by drawing data from 92 firms operating in the packaging and printing industry in Shantou City, Guangdong Province. Findings - In relation to the participating firms' innovative capabilities, density, reciprocity and multiplicity of the business network are figured out as factors with positive association, while hypotheses concerning intensity, non-redundancy and betweenness of the network are not supported. Research limitations/implications - The authors only conducted a survey in a single industry in one location. Thus the extent to which the results of this study can be generalized remains to be further investigated. Practical implications -Small and medium-sized enterprises can enhance their innovative capability by understanding and leveraging the structure of the business network in which they participate. Originality/value - This paper sheds additional insights to the relationship between a business network and firms' innovative capabilities in a Chinese context.