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Marita Haas claims that social processes are decisive for the success of SME networks and creates a phase concept based on group theory that describes how owners of small enterprises enter into a cooperation. The framework is applied to three network formation cases in Austria, Belgium and Turkey. The author shows that group theory is a useful tool to understand and anticipate processes in networked organizations and indicates that the group formation process must be accomplished before a network will be able to create benefits.
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