A Swedish study linked professional-network measures with early sales growth
Löfsten, Isaksson and Rannikko: 241 Swedish technology firms
A study of 241 surviving Swedish technology firms founded in 2013 found that a measure of professional networks (lawyers, patent advisers, venture capital firms, incubator networks and similar) was positively associated with sales growth from 2014 to 2016. It is an association in a small sample, not proof that networking caused growth.
Summary of external research. Telephone interviews March to April 2016; sales growth 2014 to 2016. Reviewed 2026-11-05.
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What it found
- In the full-sample model with controls, the professional-network measure had a coefficient of 0.055 (standard error 0.024), significant at the 5% level, with log sales growth as the outcome.
- The geographical-proximity measure was not significant in that model.
- The model explains little of the variation: adjusted R-squared was 0.039.
Method and source
- Authors: Hans Löfsten, Anders Isaksson and Heikki Rannikko, The Journal of Technology Transfer, published online 25 December 2022.
- The sample came from 1,290 independent technology and knowledge-intensive firms registered in 2013. 241 gave usable answers, a response rate of 18.7%.
- Network measures were five-point scales collected in 2016, during the period in which sales growth was measured.
- The article is open access under CC BY 4.0. This page summarises it and reproduces none of its tables.
Limitations
- Association only. Because networks were measured during the growth period, the direction of any effect is unclear.
- Only surviving firms are included, in one country, before the pandemic.
- The authors note omitted founder-background variables and limited generalisability.
- Only about 10% of the firms took part in an incubator. These are not general founders or service-provider referrals.
Questions
Does networking make a company grow?
This study cannot say. It found a statistical association, in a small Swedish sample, with no test of cause.
Does it apply to founders in New York?
Not directly. The firms were Swedish technology companies founded in 2013.