Academy of Entrepreneurship Journal Volume 26, Special Issue 2, 2020 Small and Medium Enterprises 1 1528-2686-26-S2-382 NETWORKING AND SUSTAINABLE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN SOUTH AFRICA Khutso Pitso Mankgele, University of Limpopo Olawale Fatoki, University of Limpopo ABSTRACT The main objective of this study was to investigate the impact of networking on the sustainable performance of small and medium enterprises (SMEs). A quantitative approach was used, and a self-administered questionnaire was employed during the data collection process. Correlation and regression analyses were performed to determine the relationship between networking and sustainable performance. The Cronbach’s alpha was used as a measure of reliability. The results of the study revealed that networking positively impacts on the sustainable performance of SMEs. Recommendations to improve the networking of SMEs are suggested. These recommendations offered meaningful insights into SME owners, government, non- government organisations and other organisations for the improvement of their businesses while providing room for future research studies. Keywords: Networking, Sustainable Performance, Small and Medium Enterprises (SMEs), Resource Dependency Theory, South Africa. INTRODUCTION Machirori (2012) defines networking as a set of continuous and sustained relationships which involve collaboration and cooperation which is mutually beneficial to all parties involved. The author advanced that the various definitions of networks suggest that networking is comprised of information and resources sharing, reduction of transaction costs and social interactions that exist between individuals. The importance of networking to SMEs is supported by the transaction cost theory by Coase (1937); which was further advanced by Williamson (1985); the social network theory (Moreno, 1937) the resource dependency theory by Pfeffer and Salancik (1978) and the network closure theory (Coleman, 1988). Networking has been identified as one tool that can be utilised by SMEs to improve their performance (Machirori, 2012). Networking allows a firm to establish links and relationships with mutual goals for the purpose of cost-effective economic transactions (Schott & Wickstrøm, 2016). Networking can supply firms with resources in a flexible manner and at a reduced cost and facilitate knowledge flows and technological improvements by the way it helps to stimulate product or process innovation (Vanhaverbeke, et al., 2009). Networking is widely seen as a key element in entrepreneurial success (Jack, 2010). Networking with other people allows managers to access new resources, opportunities and information, which can lead to desired SME performance (Naudé et al., 2014). Networking often advances the opportunity of losing strategic information and competence to partners. Therefore, some networking relationships might not be valuable (Semrau & Werner, 2012). In terms of this opinion, this study maintains that networking is likely