The importance of social networks in the Norwegian firewood industry

Abstract

This study examines the relationship between social network size, innovation and firm performance among firewood producers in Norway. Moreover, it investigates how this relationship is affected both by the structure and variations in networks and by firm size and age. A questionnaire-based survey was sent to managers of firms (including one-person firms) in the firewood industry in Norway. A total of 645 usable replies were received, and the theoretical model was tested using structural equation modelling. The findings show that social network size has a positive effect on firm performance via innovation by firewood producers. Furthermore, the results show that firewood producers with fewer involved family members and more variation in occupation and entrepreneurial experience in their networks benefit more from larger social networks than other producers do.