The Influence of Proximity on the Networks of SME’s The Case of the Mediacentrale

Young entrepreneurial firms depend on network ties to gain legitimacy, access to resources and access to knowledge in order to survive, grow and innovate. Research shows that proximity has a major influence on these networks. However, focus of research is generally on large scale clusters, cities or regions. The aim of this paper is to test the current relevant theory on networks and locational theory in a situation where young entrepreneurial firms are located in the same office building. A case study research of a proximity network in the Northern Netherlands was conducted and the results show that there are fewer strong ties than expected, and that the proximity network does not seem to give firms significant advantages.