Network architecture for innovative performance: Lessons from a latent growth design

Strategic small and medium-sized enterprise networks have received significant policy attention for their potential role in improving innovation, but a review of the literature reveals merely anecdotal evidence. This article extends previous findings by researching the influence of network size, bottom-up formation, and size of administrative function on network innovative performance. By using longitudinal data from 53 strategic SME networks and latent growth modeling, we find that larger networks and networks formed by members achieve greater innovative performance and tend to enlarge their administrative function more rapidly, which also influences the level and growth of network innovative performance.