Knowledge networks and the nature of knowledge relationships of innovative rural SMEs

Purpose - The purpose of this paper is to develop a framework for analysing the configuration of knowledge networks used by innovative rural small- and medium-sized enterprises, and the nature of the relationships between knowledge transferring actors. Design/methodology/approach - The research is based on semi-structured interviews with rural innovative entrepreneurs and regional key informants. Social network analysis (SNA) was used to identify configuration of relationships, and content analysis to understand the nature of the knowledge relationships. Findings - Higher innovation levels are related to proactive and strong relationships with extra-local actors, usually from the international level, mainly from the Baltic Sea region. The actors, who have a greater role in innovation, are special customers, scientific organisations and non-human actors (e.g. trade fairs). Greater variety in proactive relationships helps achieve higher-level innovations. Reactive and weaker relationships tend to be related to lower innovation levels. Originality/value - This study contributes to the development of rural innovation research practice through the development of a framework for analysing the configuration of knowledge networks and the nature (activity and strength) of relations between actors. Thus, two different dimensions not used together previously are combined and advanced. In addition, in this paper, the relations that go beyond a region's borders are also included, compared to earlier studies, where SNA was commonly used only with reference to relations inside a territory. An example from Central and Eastern Europe supplied to the literature on rural innovation networks is of additional value.