Business Networks and Performance: A Spatial Approach

6. Conclusions

This paper aims to contribute to the effect of business networks on business
performance and, as a result, on regional development. We recorded in detail each
firm’s networking and innovative activities and attempted to capture several dimensions
of business performance. More specific, the level of material inputs produced locally
and the firms production exported (to customers or trading companies) was captured in
terms of total inputs and total outputs. We avoided to record actual numbers (quantities
or values) of inputs or outputs in order to get more accurate responses away from
intentionally misleading figures.Furthermore, it is examined whether each firm was a
part of suppliers or customers network or exercised spot trade for inputs and outputs,
whether they were trading with the same sources for finance, advice and consultancy
services and if their business agreements are formal or informal.

After using a simple Keynesian regional multiplier model (input-output), our
conclusions are that, surprisingly enough the sector of economic activity does not exert
a statistically significant impact. Furthermore, the type of formal or informal agreement
doesn’t yield any important results. And financial and consultancy networking again
doesn’t have any impact on the firms’ use of locally produced inputs and of its
exporting activity. However, the location of the firm affects all dimensions of
performance with firms located in Evrytania having higher probabilities of performing
better than firms located in Kalavryta.

We have evidence that businesses accessing a horizontal network (for inputs) has more
use of locally produced inputs from businesses that access either vertical networks or
exercises spot trade (for inputs). Moreover, businesses that access vertical networks for
customers have more exported output from businesses accessing either horizontal
networks or exercise spot trade for customers. Last but not least, capital is maintained in
the area, increasing regional growth.

Acknowledgment

This publication arises out of ‘Aspatial Peripherality, Innovation, and the Rural
Economy’, EU Fifth Programme, (AsPIRE - QLK-2000-00783) coordinated by Dr.
Andrew Copus of the Scottish Agricultural College, Aberdeen, (Scotland) and in

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