Influence of External Factors on the Performance through the Network of Small and Medium Enterprises

Abstract

The background of this research is based on the performance of small and medium enterprises which states that the network is part of a very important thing to improve and enhance the performance, but the network is done SMEs is influenced by many factors, one of which factors external to the organization. This study examined theoretically based on previous literature and a variety of empirical evidence. The hypothesis there is a significant positive effect of external factors on the performance over the network. Networking is an entrepreneurial tool that is very important because it contributes to the formation, development and growth of small companies. Network on small companies shows that the network will help companies obtain information and advice. Results of this study showed that there were significant positive influence of external factors on the performance over the network.

Keywords: External Factors, Performance and Networking