Personal relationships and innovation diffusion in SME networks: A content analysis approach.

Networks have been hailed as a third organizational form, between markets and hierarchies. One of
the main characteristics of networks is the coexistence of different kinds of relationships, personal and
professional among these. The presence of multiple types of relationships modifies inter-firm dynamics,
creating a space where traditional innovation activities take place in an unusual way. The present paper
investigates the role played by personal relationships within networks, addressing the following research
questions: how do different types of relationships existing in a network of SMEs favour the development
of economic activities? And do personal relationships play a role in supporting innovative activities? To
answer our research questions, we analyzed qualitative data using content analysis methodology. Content
analysis allows researchers to obtain an objective, systematic, and quantitative description of the manifest
content of a communication. Based on this analysis, we conclude that the coexistence of personal and
professional relationships shapes a unique context that alters the usual dynamics of innovation diffusion.