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This article advocates that networking is an inherent tool of marketing that is wholly compatible with entrepreneurial decision-making characteristics in relation to marketing activities in SMEs. A model of fundamental influences on entrepreneurial marketing by networking serves as a foundation for illustrating the context of entrepreneurial networking. This article also describes the purpose and process of entrepreneurial marketing by networking and provides an example of it in operation.
Many studies have recognized that SMEs do not conform to the conventional marketing characteristics of marketing textbook theories or to the marketing carried out in larger organizations.2 SME characteristics may be determined by the inherent influences of the entrepreneur, the size and stage of development of the enterprise, and traditional industry practices. Thus, SME entrepreneurial marketing tends to be reactive,3 informal, spontaneous, haphazard, and unstructured,5 with small firms tending to have a survival or fire-fighting mentality.6
The inherent existence of the SME entrepreneur's "network" is built around his or her normal interactions and activities. The fundamental components of a network are nodes and connections. In a social science context, nodes are replaced with actors and connections with social ties and bonds.7 A social network consists of a series of direct and indirect ties from one actor to a collection of others, where the central actor can be either an individual person or an aggregation of individuals with a network tie as a relation or social bond between two interacting actors. In an SME context, these network activities have been described in a variety of ways: personal contact,8 social,9 business,10 industry and trade,11 and marketing networks.12
When discussing small firm networks, reference is often made to the personal contact network (PCN)-any relationship or alliance the owner manager may develop to further the potential of his or her enterprise.13 The concept of personal networks is sufficiently general to include all dimensions considered relevant for success, including attention to customers, understanding of the business, market orientation, and improving quality. 14 Networking refers to the actual process of liaison with contacts within the network; it is about individuals and companies working alongside each other and cooperating through the exchange of ideas, knowledge, and technology.15 SMEs and entrepreneurs will have some kind of network which is likely to encompass all...