A survey of 141 small & medium sized enterprise (SME) principals reveals two distinctly different types of knowledge networks based upon the principal s perception of whether or not networks provide a significant benefit to their firm. Significant differences exist in the type of information exchanged, the type of networks maintained, and how networking activities contribute to the competitive position and performance of the firm. Firms that see benefits to networking maintain intense and broad networks oriented towards potential knowledge. Assimilating this knowledge, they gain competitive advantage and maintain higher levels of performance. Those that do not see a benefit to networking activities maintain less intensive networks, exchanging experientially based information; information that is 'tried and true" and which can be adapted to incrementally improve their operations
