Investigating the Relationship Between Scottish Rural Small Firms’ Social Networks, Extra-local Market Diversification and Internet Usage

This chapter reports a study that investigates the link between rural small firms’ social networks and their market diversification strategies in the context of the Internet.

Telephone interviews were conducted with a random sample of 142 Scottish small rural and urban firm owners in May 2012. The purpose of the telephone interviews was to understand how Internet usage impacted on the social networks and market diversification experiences of small rural firms. Analysis of the categorical data was performed using a variety of established methods.

Internet usage for many small Scottish rural firms was facilitating both their market reach and social networks. In addition, small rural firms’ most important social network contacts are highly correlated to their origin of sales, and this can be either locally or extra-locally based.

A positive relationship between Internet usage, social networks and market reach expansion offers support for further developing and improving the Internet infrastructure of rural communities.

Internet usage emerges as a critical tool for augmenting the social networks of Scottish rural small firms, which in turn helps to extend their market reach activities.