The Impact of Business Networking on SME Performance: Development of a Conceptual Framework.

This research attempts to create a conceptual framework that explores the impact of Business networking towards Sri Lankan Small and Medium Enterprises (SME) performance and the continuity and success of SMEs. Business networking has been gaining grounds as an influencing factor for business success in the recent years. The growth of technology has increased the avenues available for Business networking in many folds, compared to what was available a decade ago. Many empirical studies have conducted to understand and model the way how Small and Medium Enterprises (SMEs) function and perform. However, relatively limited research has been conducted on understanding the impact of business networks on SME performance throughout the world despite most of the economies recognizing SMEs as the driving force in respective economies. In the Sri Lankan context, the available literature is minimal. Sri Lankan SMEs, on the other hand differ from the rest of the world in terms of cultural values, ethics, standard operating procedures etc. This paper, therefore, attempts to develop a conceptual framework upon which further elaboration of the said relationship can be investigated. The proposed conceptual framework pay attention to certain ‘personal attributes’ of the entrepreneur that influences business networking and ‘business justification’ for the entrepreneur to consider engaging in business networking. Featured variable in the conceptual framework are Trust, Self-Efficacy, Tolerance of Ambiguity, Competition, Necessity, Reciprocity, Stability, Legitimacy and Efficiency