JOSEPH SZARKA IS A LECTURERE IN FRENCH and managment at the university of Bath, England. His paper reviews the mangment literature on networking and puts forward and thery small firm development in terms of network formation. this model holds that it is insfficient to consider the small firm in isolation: the small firm is particulary dependent on the nature and quality of its relations with otehr firms and with the external world. these relations can be conceived in terms of exchange networks, commmunication networks and social networks. goods and services, inforamtion, ideas and values are mediated by those networks and sociocial network. Good and services information ideas and values are mediated by those networks. depending on the likages between firms, network constitutions can be based on relations of control, co-ordination or co-operation. Network constitution is shown to influenc the viability and development paths of member firms. Factors encourging network formation and development are analyssed The key issue of economic effectivness and efficiency are related to questions of concetnraion and market condition. the paper concluded by emphasising the role of network formation for the expansion of the small firm sector.
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