Social Networks: Their Impact on the Innovative Behaviour of Small Service Firms

This paper presents and discusses some findings of a research study that applied social network theory to small, professional business service firms. These findings demonstrate that social networks impact upon the innovative behaviour of small firms. They reveal that through the innovative use of social networks, small, professional business service firms are able to expand their customer and resource base while minimising the costs involved. The paper draws attention to the contents of the social networks in which a purposive sample of graphic design agencies are embedded. It demonstrates that multiplex relationships, particularly with individuals holding broker positions within these networks, are perceived to be important to innovative behaviour. The paper concludes by suggesting a number of recommendations for owner-managers, policymakers and researchers.