Progress 09/15/01 to 09/14/06
Outputs
We Studied a Purposive Sample of Thirty-one Networks in Four States. For each network in the sample, we interviewed the network director or president; collected documents, by-laws, webpages, brochures, and newsletter; and interviewed a randomly drawn sample of members. In Spring 2003, 1165 members were interviewed by telephone for a cooperation rate of 79.8 percent. There were 19 industry networks and 12 community business networks in the sample. The breakdown by Standard Industrial Code for the industry networks is: 4 agriculture related associations; 2 construction associations; 2 associations in finance, insurance, and real estate; 3 in manufacturing; 3 retail associations; 2 business service associations; 1 personal service association; and 2 home based business associations, 1 enduring in Iowa and 1 non-enduring in Nebraska. Analysis of data from the previously mentioned sources compared high performance to other networks and resulted in a report entitled The Keys
to High Performing Networks. This information was presented to the collaborators at our annual meeting in Ames in August 2003. A report summarizing the descriptive findings of the telephone interviews with members was sent to all networks participating in the study and is available on the project website. Starting in the late summer and early fall of 2003, we turned to the tasks involved in the second phase of the project. We were not able to implement our plans for three of the networks described in the proposal due to industry decisions, pharmaceutical crops can not be grown in Iowa, or lack of local interest, our collaborator was unable to locate a community interested in starting a career ladder or an import substitution network. Fortunately, we developed other opportunities for business networks that are as exciting and potentially rewarding as the originals that they replace. The new business networks are: 1. A ChefGrower Network in Ohio. 2. Nebraska Apparel Stores Association.
3. Progressive Rural Iowa Development Enterprise or PRIDE. 4. Grow Your Own Small Market Network of alternative agricultural producers in Iowa. 5. An Hispanic Business Network in Ottumwa, Iowa. Other Iowa communities will be utilizing this model to start their own Hispanic business network. We have developed case studies of networks that represent particular theoretical issues. Also, there are several networks matched on industry that vary by state or date of inception. Case study comparison of these matched networks will help us control some elements in order to understand the impact of other aspects of network processes and organization on network success. The case studies will provide useful accounts and stories about how some networks solved common problems. We intend to draw upon these accounts in writing the educational materials for the third phase. Blueprint for Starting New Business Networks: A Strategy for Rural Community Economic Development - We wrote and published six
modules based on our research findings from phase one and our experience in starting 5 new business networks. The modules are available at our website http://www.soc.iastate.edu/ruralnetworks/
Impacts
This new research studies all forms of 'shocks' that may impact small communities (those ranging from 500 to 10,000 residents). It offers perspective and insight into how communities have changed and responded to such change, and helps policy and local leaders identify strategies to improve the local quality of life in the face of economic shocks. This work has resulted in residents of Jefferson, Iowa, to pull together to plan for a revitalization of the downtown. The work also was used by an ecumenical group in northeast Iowa to develop a project to actively engage rural-small town church(es) in community development projects. The research also aided a group in Pocahontas County with information on community involvement for a grant proposal to improve the area's quality of life. Work with ISU Extension included projects on economic shocks, social capital, collective action and local quality of life.
Publications
- Besser, T., Korsching, P., Miller, N., and Welch, B. 2006. Creating Business Networks. CD Practice. Forthcoming.
- Miller, N., Besser, T., and Price, J. 2006. Do Strategic Business Networks Benefit Male and Female Owned Small Community Businesses? Journal of Small Business Strategy. Forthcoming.
- Besser, T., Miller, N., and Perkins, R. 2006. For the Greater Good: Business Networks and Business Social Responsibility to Communities. Entrepreneurship & Regional Development. 18 (4): 321-339.
- Miller, N., and Besser, T. 2005. Comparing Networked to Non-Networked Small U.S. Business: A Firm-Level Investigation of Strategic Network Theory. Journal of Developmental Entrepreneurship. 10 (2): 167- 186.
- Besser, T., Miller, N., and Sujadi, F. 2006. The Company They Keep: Networks and Business Social Performance. Under review at American Sociological Review. September 2006.
- Besser, T., and Miller, N. 2006. Rules or Regulations: Institutional Effectiveness, Social Capital, and Resource Exchanges in Formal Business Networks. Under second review at The Journal of Management Studies. August 2006.
- Miller, N., Besser, T., and Malshe, A. 2006. Strategic Networking among Small Businesses in Small U.S. Communities. Under second review at International Small Business Journal. April 2006.
- Inwood, S., Sharp, J., Stinner, D., and Moore, R. 2006. Building a Local Food System: Opportunities for Local and Organic Foods for Restaurants in Ohio. To be submitted to Agriculture and Human Values in Fall 2006.
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Progress 01/01/05 to 12/31/05
Outputs
Last years work focused on analyzing the findings from the research of previous years and presenting them to small business and development audiences who are interested in rural economic development. We published a set of guidelines for trainers and developers on How to Create a Business Network. The components of the guidelines are: 1. Why Network? 2. Recruiting Members 3. Resource and Risk Sharing 4. Communication 5. Leadership 6. Transforming an Informal Network into a Formal Network. The guidelines formed the basis of presentations to extension staff in Nebraska and community leaders and developers in Iowa and a display at the Women in Agriculture conference in Nebraska. A summary of the guidelines have been submitted to the CDPractice: Promoting Principles of Good Practice. This is a publication of the Community Development Society. We continue to work with the four newly created business networks in Iowa and Nebraska. They are a womens specialty store network in
Nebraska, an Hispanic business network, a network of agricultural producers seeking alternative markets, and an entrepreneurship network in two rural Iowa towns.
Impacts
Findings from this study will provide information for policy makers and community developers and leaders about how to create and nurture enduring business networks. This information will help small rural businesses to be more innovative and successful. Innovative, successful businesses will in turn improve the employment situation for their employees and enhance the economic vitality of rural communities.
Publications
- Miller, N. J. and T. L. Besser. 2005. Comparing Networked to Non-Networked Small U.S. Business: A Firm-Level Investigation of Strategic Network Theory. Journal of Developmental Entrepreneurship. 10 (2).
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Progress 01/01/04 to 12/31/04
Outputs
Telephone interviews were conducted with a stratified random sample 460 business operators, 42.4 percent of whom were non-network members, to ascertain differences between networked and non-networked businesses. Using these data, plus the data from the 2003 interviews with 1122 members of 29 business associations, several sets of findings have been presented at professional association meetings and submitted to peer-reviewed journals for publication. In one examination, the problems of free riders, opportunism, and dyadic defection were examined. Using institutional and social capital theories, we elaborated three variations of trust and tested their association with member involvement and resource exchanges offering differing potentials for opportunism. Findings show that trust based on personal acquaintanceships is associated with fewer free riders. Trust based on shared values and common vision is more likely to generate resource exchanges with the greatest risk of
opportunism. Trust based on instrumental gain is the best predictor of less risky resource exchanges. These conclusions both support and challenge institutional and social capital theories. Another examination explored the relationship between business networking and business social responsibility to communities, defined as the provision of leadership and support for community betterment projects. Findings show that networked businesses provide more leadership and support for their communities than non-networked businesses. However, networked businesses were no more likely than non-networked businesses to use local suppliers of goods and services. A third paper explored the effects of networking on small business owners strategic planning and determined whether there are gender differences in networking relative to shared vision and resources, business activities, perceived advantages, and the effects of these variables on continued membership in the network. Few differences beyond
gender were found related to owner or business demographics and these characteristics held little to no affect on the specific variables hypothesized to affect continuance in the network. Overall, findings suggest that though males rated resource sharing significantly higher than females, no other differences were discovered for level of shared vision, business activities, perceived advantages nor network continuance. Findings offer support for social capital and strategic networking theory, and offer practical applications for promoting small business creation, retention, and expansion in small communities. We continue to work with the five newly created business networks in Iowa, Nebraska and Ohio. They are a womens specialty store network in Nebraska, an Hispanic business network and an entrepreneurship network in two rural Iowa towns, and a collaborative arrangement between agricultural producers and upscale chefs in Ohio.
Impacts
Findings from this study will provide information for policy makers and community developers and leaders about how to create and nurture enduring business networks. This information will help small rural businesses to be more innovative and successful. Innovative, successful businesses will in turn improve the employment situation for their employees and enhance the economic vitality of rural communities.
Publications
- No publications reported this period
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Progress 01/01/03 to 12/31/03
Outputs
Telephone interviews were conducted with 1122 members of 29 business associations in the four state area. Ten of the associations were community based and 19 were industry associations that spanned seven different industries. Also the directors or presidents of each association were interviewed and association material, including newsletters, bylaws, brochures, were analyzed. High performing associations were defined as those that ranked highest on a scale composed of member responses to 4 questions measuring their satisfaction with the association, their reaction to the association demise, their opinion about the associations future, and members anticipated future involvement in the association. High performing associations are significantly different from low performers in that members report that within these associations there are: higher status members; more trust, commitment and shared vision among members; greater frequency of communication among members; and a
newsletter. They also have greater exchange of resources between members including purchasing material together, sharing employees, developing products together, referring customers to each other, and working together on marketing than do low performing associations. Members of high performing associations are more likely to have joined the association in order to influence legislation, make their business more successful, and share information than are members of low performing associations. These findings allowed us to develop a set of guidelines for creating and sustaining high performing business associations. Five new business associations are being created using these guidelines: a women specialty store network in Nebraska, an entrepreneurship club, Hispanic business network, and a network of farmers growing for alternative markets in Iowa, and a network of restaurant chefs and agricultural producers in Ohio.
Impacts
Findings from this study will provide information for policy makers and community developers and leaders about how to create and nurture enduring business networks. This information will help small rural businesses to be more innovative and successful. Innovative, successful businesses will in turn improve the employment situation for their employees and enhance the economic vitality of rural communities.
Publications
- No publications reported this period
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Progress 01/01/02 to 12/31/02
Outputs
We completed the pilot phase of the study. Also, 30 network directors for the full study have been contacted and interviewed. 2250 members of the networks will be interviewed beginning in February 2003. There are no findings yet to report.
Impacts
Findings from this study will provide information for policy makers and community developers and leaders about how to create and nurture enduring business networks. This information will help small rural businesses to be more innovative and successful. Innovative, successful businesses will in turn improve the employment situation for their employees and enhance the economic vitality of rural communities.
Publications
- No publications reported this period
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Progress 01/01/01 to 12/31/01
Outputs
We actually only started work on the project in January 2002. We are planning the first stage. No research was conducted in 2001. Therefore, there are no findings to report.
Impacts
Findings from this study will provide information for policy makers and community developers and leaders about how to create and nurture enduring business networks. This information will help small rural businesses to be more innovative and successful. Innovative, successful businesses will in turn improve the employment situation for their employees and enhance the economic vitality of rural communities.
Publications
- No publications reported this period
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