Business Networks and Performance: A Spatial Approach

> Vertical networks linking the case study area with the region, the nation and the EU
> Horizontal networks linking businesses in the case study region

We also assume the existence of an intensity (some kind of scale) linking businesses in
a network from strong to weak links. We expect vertical networks to be more formal
while horizontal networks to be more informal (partnerships or occasional synergistic
approaches to economic and social issues).

Figure 1. The Operation of Vertical and Horizontal Networks
(adapted by Kneafsey et al., 2001)

Strong Vertical Networks

Strong Horizontal

Networks

3.2 Business Performance

The definition of successful business performance is a controversial issue in business
economics, largely due to the multidimensional meanings and goals that have been
assigned to entrepreneurship. Research on performance measurement generates from
organization theory and strategic management. Murphy’s et al. (1996) work has
provided the most complete account of the changing meaning and measurement of

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