Document Type

Journal Article


A number of recent studies have suggested that, for small businesses to compete with their larger counterparts in the electronic commerce environment, many are collaborating in a network arrangement. This study examines whether factors such as business size, business age, business sector or market focus are associated with decisions to collaborate in a network or remain outside such arrangements. The study showed that small businesses, with fewer than ten employees, were more likely to be part of a formal network of small businesses. The results also showed that the age of the business, the number of suppliers, the existence of a marketing strategy and the educational level of the CEO were significantly associated with decisions to become part of a formal networking arrangement.