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Abstract
The food sector in Europe can be characterized as a complex, global and dynamically changing network of trade
streams, food supply network relations and related product flows which offers a big spectrum for economic output
and employment. Innovation is important for the competitiveness of the food industry that is to a large extent
comprised of small and medium sized enterprises (SMEs). For them, innovation has grown extremely subordinate to
interaction in networks. Network initiatives that could provide appropriate support involve social interaction and
knowledge exchange, learning and competence development, and coordination (organization) and management of
implementation. This paper is designed to assess the factors that affect the performance of German food SME
formal networks. It also addresses the consequences at the network and macro level. The analysis was explored by
using the laddering technique based on the means‐end chain theory. The findings will help to build up a “network
learning toolbox” that is adapted to the particular requirements of the different target groups such as of SMEs,
network managers and policy makers. The “network learning toolbox” should improve network learning, which is a
driver for improvements in innovation, economic growth and sustainable competitive advantage for food SMEs.