In these past 5 years, economic growth in Indonesia is climbing and may expand more in 2013. Micro, Small and Medium-sized Enterprises (MSMEs) are one of the key sources of economic growth in Indonesia. Many firms from the same industry form a business community, and it can become a network of inter-organizational relationships or business networks for the firm. SMEs need to implement network approach strategic management by managing the business networks they had and creating business strategy based on the networks’ resources and competencies to gain competitive advantages.
In order to grow using network approach strategy a firm should know what’s the nature of the business environment where they reside and formulate business strategy that define what resources and competencies the company possesses by itself, and what it aims to acquire from external organizations and what kind of linkages it needs to have to access those required external resources and competencies. It needs also be concerned with the resources and competencies that the existing relationship portfolio provides and the means of developing and exploiting that portfolio. And implement the strategy by doing strategic management activities in networks.

In these past 5 years, economic growth in Indonesia is climbing and may expand more in 2013. Micro, Small and Medium-sized Enterprises (MSMEs) are one of the key sources of economic growth in Indonesia. Many firms from the same industry form a business community, and it can become a network of inter-organizational relationships or business networks for the firm. SMEs need to implement network approach strategic management by managing the business networks they had and creating business strategy based on the networks’ resources and competencies to gain competitive advantages.
In order to grow using network approach strategy a firm should know what’s the nature of the business environment where they reside and formulate business strategy that define what resources and competencies the company possesses by itself, and what it aims to acquire from external organizations and what kind of linkages it needs to have to access those required external resources and competencies. It needs also be concerned with the resources and competencies that the existing relationship portfolio provides and the means of developing and exploiting that portfolio. And implement the strategy by doing strategic management activities in networks.

References

[1] Adler, P. S., & Kwon, S. W. (2002). Social Capital: Prospects for a New Concept. Academy of Management Review, Vol. 27, No. 1 , 17-40.
[2] Ardishvili, A., Cardozo, S., Harmon, S., & Vadakath, S. (1998). Towards a Theory of New Venture Growth. Babson Entrepreneurship Research Conference. Ghent.
[3] Axelsson, B. (1992). Corporate Strategy Models and Networks – Diverging Corporate Strategy Models and Networks – Diverging Perspectives. In B. Axelsson, & G. Easton, Industrial Networks: A New View of Reality (pp. 184-204). London: Routledge.
[4] Burt, R. S. (1992). Structural holes: The Social Structure of Competition. Cambridge: Harvard University Press.
[5] Burt, R. S. (1997). The Contingent Value of Social Capital. Administrative Science Quarterly, Vol. 42, No. 2 , 339-365.
[6] Burt, R. S. (2000). The Network Structure of Social Capital. Research in Organizational Behaviour, Vol 22 , 345-423.
[7] Caniels, M. C., & Romijn, H. A. (2005). What Works, and Why, in Business Services Provision for SME: Insights from Evolutionary Theory. Managing Service Quality, Vol. 15 .
[8] Coleman, J. S. (1988). Social Capital in the Creation of Human Capital. American Journal of Sociology, Special Issue Vol. 94 , S95 – S120.
[9] Coyne, K. P., & Subramaniam, S. (1996). Bringing Discipline to Strategy. The McKinsey Quarterly, No. 4 , 61-70.
[10] Cravens, D. W., & Piercy, N. F. (1994). Relationship Marketing and Collaborative Networks in Service Organizations. International Journal of Service Industry Management, Vol. 5, No. 5 , 39-53.
[11] Cravens, D. W., Piercy, N. F., & Shipp, S. H. (1996). New Organisational Form for Competing in Highly Dynamic Environments: The Network Paradigm. British Journal of Management, Vol. 7, No. 3 , 203-218.
[12] Day, G. S., & Shoemaker, P. J. (2000). Wharton on Managing Emerging Technologies. New York: John Wiley & Sons.
[13] Delmar, F. (1997). Measuring Growth: Methodological Considerations. In R. Donckels, & A. Miettinen, Entrepreneurship and SME Research: On its Way to the Next (pp. 199-216). Aldershot: Ashgate.
[14] Delmar, F., Davidsson, P., & Gartner, W. B. (2003). Arriving at the High-Growth Firm. Journal of Business Venturing, Vol. 18 , 189-216.
[15] DFC Intelligence. (2012). Worldwide Market Forecasts for the Video Game and Interactive Entertainment Industry.
[16] Duniaku. (2012, 08). Game Developers Gathering 2012: Event Roundup. Retrieved 12 2012, from Duniaku: http://www.duniaku.net/2012/05/28/game-developers-gathering-2012-trilogy-event-roundup-part-1/
[17] Dyer, J. H., & Singh, H. (1998). The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage. The Academy of Management Journal, Vol. 23, No. 4 , 660-679.
[18] Eisingerich, A. B., & Bell, S. J. (2008). Managing Networks of Interorganizational Linkages and Sustainable Firm Performance in Business-to-Business Service Contexts. Journal of Services Marketing, Vol. 22, No. 7 , 494-504.
[19] Elfring, T., & Hulsink, W. (2003). Networks in Entrepreneurship: The Case of High-Technology Firms. Small Business Economics, Vol. 21, No. 4 , 409-422.
[20] Ford, D., Gadde, L.-E., Hakansson, H., Lundgren, A., Snehota, I., Turnbull, P., et al. (1998). Managing Business Relationships. Chichester: John Wiley & Sons.
[21] Granovetter, M. (1985). Economic Action and Social Structure: The Problems of Embeddedness. American Journal of Sociology, Vol. 91, No. 3 , 481-510.
[22] Granovetter, M. (1992). Problems of Explanation in Economic Sociology. In N. Nohria, & R. G. Eccles, Networks and Organizations (pp. 25-56). Boston: Harvard Business School Press.
[23] Granovetter, M. (1973). The Strength of Weak Ties. American Journal of Sociology, Vol. 78, No. 6 , 1360-1380.
[24] Gulati, R. (1998). Alliances and Networks. Strategic Management Journal, Vol. 19, No. 4 , 293-317.
[25] Gulati, R. (1999). Network Location and Learning: The Influence of Network Resources and Firm Capabilities on Alliance Formation. Strategic Management Journal, Vol. 20, No. 5 , 397-420.
[26] Gulati, R., Nohria, N., & Zaheer, A. (2000). Strategic Networks. Strategic Management Journal, Vol. 21, No. 3 , 203-215.
[27] Hakansson, H., & Ford, D. (2002). How Should Companies Interact in Business Networks? Journal of Business Research, Vol. 55, No. 2 , 133-139.
[28] Hakansson, H., & Snehota, I. (1995). Developing Relationships in Business Networks. London: Routledge.
[29] Hakansson, H., & Snehota, I. (1989). No Business is an Island: The Network Concept of Business Strategy. Scandinavian Journal of Management, Vol. 4, No. 3 , 187-200.
[30] Halinen, A., Salmi, A., & Havila, V. (1999). From Dyadic Change to Changing Business Networks: An Analytical Framework. Journal of Management Studies, Vol. 36, No. 6 , 770-794.
[31] Hart, P. E. (2000). Theories of Firms’Growth and the Generation of. Review of Industrial Organization, Vol. 17 , 229-248.
[32] Indonesia Government. (2008). Undang-Undang Republik Indonesia Nomor 20 Tahun 2008 Tentang Usaha Mikro, Kecil dan Menengah. Jakarta.
[33] Indonesia Ministry of Cooperatives and SMEs. (2010). Perkembangan Data Usaha Mikro, Kecil, Menengah (UMKM) Dan Usaha Besar (UB) Tahun 2005 – 2009. Jakarta.
[34] Jarillo, J. C. (1988). On Strategic Networks. Strategic Management Journal, Vol. 9, No. 1 , 31-41.
[35] Johansson, J., & Mattsson, L.-G. (1992). Network Positions and Strategic Action: An Analytical Framework. In B. Axelsson, & G. Easton, Industrial Networks: A New View of Reality (pp. 205-214). London: Routledge.
[36] Juttner, U., & Schlange, L. E. (1996). A Network Approach to Strategy. International Journal of Research in Marketing, Vol. 13, No. 5 , 479-494.
[37] Kogut, B. (2000). The Network as Knowledge: Generative Rules and the Emergence of Structure. Strategic Management Journal, Special Issue Vol. 21 , 405-425.
[38] Koka, B. R., & Prescott, J. E. (2008). Designing Alliance Networks: The Influence of Network Position, Environmental Change, and Strategy on Firm Performance. Strategic Management Journal, Vol. 29, No. 9 , 639-661.
[39] Kushnir, K., Mirmulstein, M., & Ramalho, R. (2010). Micro Small and Medium Term Enterprise around the World: How Many are There and What Affects the Count? World Bank and IFC MSME Country Indicators.
[40] Molina-Morales, F. X., & Martinez-Fernandez, M. T. (2010). Social Networks: Effects of Social Capital on Firm Innovation. Journal of Small Business Management, Vol. 48, No. 2 , 258-279.
[41] Moller, K., & Halinen, A. (1999). Business Relationships and Networks: Managerial Challenge of Network Era. Industrial Marketing Management, Vol. 28, No. 5 , 413-427.
[42] Moran, P. (2005). Structural vs. Relational Embeddedness: Social Capital and Managerial Performance. Strategic Management Journal, Vol. 26 , 1129-1151.
[43] Moran, P., & Ghoshal, S. (1999). Markets, Firms, and the Process of Economic Development. Academy of Management Review, Vol. 24, No. 3 , 390-412.
[44] Mourougane, A. (2012). Promoting SME Development in Indonesia. OECD Economics Department Working Papers, No. 995, OECD Publishing.
[45] Nahapiet, J., & Ghoshal, S. (1998). Social Capital, Intellectual Capital and the Organizational Advantage. Academy of Management Review, Vol. 38, No. 2 , 242-266.
[46] Pagano, P., & Schivardi, F. (2003). Firm Size Distribution and Growth. Scandinavian Journal of Economics, Vol. 105, No. 2 , 255-274.
[47] Penrose, E. T. (1959). The Theory of the Growth of the Firm. Oxford: Oxford University Press.
[48] Pettigrew, A., Thomas, H., & Whittington, R. (2002). Strategic Management: The Strengths and Limitations of a Field. In A. Pettigrew, H. Thomas, & R. Whittington, Handbook of Strategy and Management (pp. 3-30). London: Sage Publications.
[49] Podolny, J. M., & Baron, J. N. (1997). Resources and Relationships: Social Networks and Mobility in the Workplace. American Sociological Review, Vol. 62, No. 5 , 673-693.
[50] Rao, M. (2012). Mobile Southeast Asia Report 2012: Crossroads of Innovation. Mobile Monday.
[51] Sanchez, R., & Heene, A. (1997). Reinventing Strategic Management: New Theory and Practice for Competence-based Competition. European Management Journal, Vol. 15, No. 3 , 303-317.
[52] Schoonjans, B., Van Cauwenberge, P., & Bauwhede, H. (2011). Formal Business Networking and SME Growth. Small Business Economy .
[53] Shepherd, W. G. (1979). The Economics of Industrial Organization. New Jersey: Prentice-Hall.
[54] Sheth, R., Sugrue, A., Estefan, S., & Miller, D. (2006). Shifting Based from the US to Japan. Retrieved 11 25, 2012, from Duke University: http://sites.duke.edu/soc142-videogames/international-trade-patterns/shifting-base-from-the-us-to-japan/
[55] Sosa, M. E. (2011). Where Do Creative Interactions Come From? The Role of Tie Content and Social Networks. Organization Science, Vol. 22, No. 1 , 1-21.
[56] Tikkanen, J., & Halinen, A. (2003). Network Approach to Strategic Management: Exploration to the Emerging Perspective.
[57] Toge Productions. (2009). Retrieved 2012, from Toge Productions Company Website: http://togeproductions.com/
[58] Uzzi, B. (1997). Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness. Administrative Science Quarterly, Vol. 42, No. 1 , 35-67.
[59] Uzzi, B. (1996). The Sources and Consequences of Embeddedness for the Economic Performance of Organizations: The Network Effect. American Sociological Review, Vol. 61, No. 4 , 674-698.
[60] Venkatraman, N., & Subramaniam, M. (2002). Theorizing the Future of Strategy: Questions for Shaping Strategy Research in the Knowledge Economy. In A. Pettigrew, H. Thomas, & R. Whittington, Handbook of Strategy and Management. London: Sage Publications.
[61] Walker, G. (1998). Strategy and Network Formation. In B. JAC, Advances in Strategic Management, Vol. 15 (pp. 149-165). Greenwich: JAI Press.
[62] Wenger, E., Trayner, B., & de Laat, M. (2011). Promoting and Assessing Value Creation in Communities and Networks: A Conceptual Framework.
[63] Zaheer, A., & Bell, G. G. (2005). Benefiting from Network Position: Firm Capabilities, Structural Holes, and Performance. Strategic Management Journal, Vol. 26, No. 9 , 809-825.