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Paper info: Network Capability in Entrepreneurial Firms: The case of the Irish Micro-Brewery Industry

Title


Network Capability in Entrepreneurial Firms: The case of the Irish Micro-Brewery Industry

Authors


Helen McGrath
University College Cork
Ireland
Helen McGrath and Thomas O'Toole

Place of Publication


The paper was published at the 28th IMP-conference in Rome, Italy in 2012.

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Abstract


The purpose of this article is to report the findings of a study designed to address why Irish entrepreneurial firms do not have network capability and the barriers preventing them from developing same. Within the food and drink manufacturing sector, Ireland has the natural resource base necessary to succeed and excel internationally (Bell and Shelman, 2010) and has a huge range of its own firms in this area. One of the key reasons that Ireland does not have a greater number of international food and drink manufacturing firms may be that they do not participate in networks. Focusing on the Irish micro-brewing industry, this paper will address the key factors both inhibiting and enabling entrepreneurial participation in networks. This represents a critical gap as while the entrepreneurship literature recognises that firms are becoming increasingly dependent on external resources and capabilities, little research exists within the IMP group regarding the factors that may enable or inhibit network participation. This paper profiles the factors both enabling and inhibiting entrepreneurs from engaging in networks examine: the personal characteristics of the entrepreneur, institutional factors affecting them and their view of business models. The empirical research for this study entailed in-depth interviews with 17 micro-brewery entrepreneurs from the Republic of Ireland. Findings suggest that, among other factors, a strong desire for growth, past experience, government sponsored festivals and strong relationships within the business model enable network participation. Conversely, quality of life protectionism, a preference for independence, a desire for control and transactional operations within business models inhibits network participation. This has implications for practice, academia and policy as entrepreneurial network inhibitors must be addressed to ensure continued survival and growth for our entrepreneurial base.