Danish Technological Institute SME sector networking model

In the late 1980s, the Danish Technological Institute received funding to examine whether networking might provide a mechanism through which to promote survival and growth among SME (small to medium‐sized enterprises) sector firms. To overcome the absence of a large‐firm hub in the SME sector, the institute evolved a five‐phase model in which an independent individual external to the potential network became responsible for brokering the interfirm co‐operation process. Plymouth Business School, in collaboration with the institute′s UK subsidiary, UK Business Net, undertook a study to gain further understanding of this problem. Describes the nature of identified provision gaps and provides the basis for evolving a detailed specification of the competences required of a network broker. This knowledge permitted the redesign of the broker competency development programme. Early results from implementation of the new system indicate a significant improvement in the capability of brokers to fulfil their assigned role in utilizing networking as a potential mechanism for enhancing SME‐sector growth.