Learning Networks - A Metaphor for Inter Organizational Development in SMEs

Abstract

This paper aims to highlight the importance of external relations and the qualitative elements of dialogue for the development of SMEs. This is achieved by using the metaphor of learning networks as a base for facilitating inter and intra organisational company development. The paper draws on a five-year field study, where the emergence and workings of inter-organisational networks were followed from a participant perspective with special emphasis being placed on the outcome for SMEs of participating in a learning network. The focus of these networks was on experience exchange and joint knowledge creation, as well as business relations. A significant outcome of this inter-organisational networking was the sharing of knowledge and visions on how to work on development combined with an emphasis on the role of external relations for internal company development, i.e. the possibilities of using networks as a development tool. These relations have also proved to be an effective medium for sharing experience and enhancing mutual trust among the participants. It has been particularly effective in sharing tacit knowledge and creating new management perspectives. Results from the study indicates that SMEs can use the learning network as an alternative form of organisation for development, where managers from different companies, together with researchers, form an ad hoc ''development group'' to compensate for internal lack of resources.

Keywords:

• Networks
• Learning
• External Relations
• Small Firms