Learning resource limitations are critical factors that influence the stability and future development of SMEs. This publication explores how learning networks help SMEs develop capabilities by resolving their resource limitations. SMEs are key to maintaining growth in economies but they have major challenges that are often aggravated by their relative size and small operational footprints. SMEs form a significant economic force in many economies including Ireland where this empirical study was undertaken. Learning networks are mechanisms that have been developed to assist SMEs in capability- building. Research in capability-building has been conducted in large firms but somewhat neglected in SMEs. A literature review led to the development of a conceptual framework and a cross- case study analysis was carried out to robustly test this framework. It focused on the Polymer and Refrigeration industries in Ireland to investigate how and why firms differed in their capability- building acquisition while participating in a learning network. The findings show that participation in a learning network catalyses capability-building in SMEs.

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