Spurring entrepreneurial intensity through social capital and relationship quality (original) (raw)
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International Review of Management and Marketing, 2019
Social capital is a concept that describes good quality social relations that can lead to mutual benefits. The social capital theory thrives on relationships in networks to gain access to resources, especially information benefits not available to non-members of the network. The study reports the effects of social capital on firm performance. The study further examines the moderating role of entrepreneurial orientation in the relationship between social capital and firm performance; and the mediating role of dynamic capabilities in the relationship between social capital and firm performance. Using SmartPLS software 3.2.8 to analyze primary data collected from 787 small and medium-sized enterprises (SMEs) operating in Ghana, the results show that social capital has a positive and direct relationship with firm performance in Ghana. The findings suggest that EO moderates the relationship between social capital and firm performance. Again, dynamic capabilities mediate the relationship between social capital and firm performance. The study also provides managers with practical ways of building relationships within their networks for achieving competitive advantage in the current business environment.
Transforming Social Capital into Performance via Entrepreneurial Orientation
Australasian Marketing Journal, 2020
Despite the importance of social capital (e.g. external network ties, social interaction, and relationship quality) and entrepreneurial orientation (e.g. proactiveness, innovativeness, and risk taking) for firm performance, little is known about the mechanisms that benefit firms from the interplay among these factors. It has also been unclear which entrepreneurial processes or activities assist in transforming social capital into positive performance outcomes. In this study, we clarify how and why entrepreneurial orientation assists in transforming social capital into firm performance. A survey of 198 entrepreneurs in Vietnam shows that entrepreneurial firms need both bridging and bonding capital (i.e. external network ties and social interaction) for enhanced relationship quality. While proactiveness mediates the impact of relationship quality on firm performance, findings show no support for the mediating role of innovativeness and risk taking. In other words, proactiveness conver...
Handbook of Research on Small and Medium Enterprises in Developing Countries
The importance of entrepreneurial orientation (EO), resource-based view (RBV), network types of social capital (SC) and small and medium enterprises (SMEs) have become the main focus in the manufacturing environment. The current study investigates 1. The relationship between EO and Manufacturing SMEs performance and 2. The moderating effect of intra- and extra-industry network in EO and manufacturing SMEs performance relationship. Quantitative method was done through survey. The population of this study was industrial SMEs in Tehran and Hamedan. Proportionate stratified random sampling was employed and out of 580 questionnaires sent out, only 150 questionnaires were returned. The result implies that the dimensions of EO positively improved manufacturing SMEs performance. In addition the result shows that the high intra-industry network strongly moderates the relationship between innovativeness and growth-profit ability and also strongly moderates the relationship between risk-taking...
The role of social capital in fostering entrepreneurship in established organizations
2009
This study investigates social behavior of employees and its effect on entrepreneurial activities. Social capital is a strategic resource available through the network of relationships may be exploited in the direction of organizational and individual objectives. The study posited that this powerful asset may be leveraged in fostering entrepreneurial orientation of employees, which is an antecedent for improving the performance. A developed survey was sent to a selected sample of academic staff in five public univer sities in Victoria. The collected data were subject to statistical analysis and the result was derived. The findings indicated that there is a positive and significant relationship between social behavior and entrepreneurial orientation of academics. The predictability of entrepreneurial activities by social relationships was tested.
Indonesian Journal of Business and Entrepreneurship, 2023
Various economic problems can be solved with good entrepreneurship. SMEs are part of entrepreneurship that plays an essential role in the economy, including reducing unemployment and improving a country's economy. Environmental conditions that are VUCA (Volatility, Uncertainty, Complexity, Ambiguity) make SMEs have obstacles such as lack of competence, capacity, knowledge and skills of SME actors to adapt in running a business. The ability of SMEs to be able to continue to run their business makes SMEs must have dynamic capabilities that come from internal and external SMEs. Therefore, the purpose of this paper is to review the relevant literature in determining the theories that can shape the dynamic capabilities of SMEs. Based on a literature review, this research generated the result that entrepreneurial orientation (internal) and social capital (external) is critical in developing SMEs' dynamic capability.
The Extent of Entrepreneurial Orientation, Social Capital and Knowledge Creation of SMEs in Surabaya
IJSES, 2022
One of the national economic recovery efforts carried out by the government during the Covid-19 pandemic is to encourage the SMEs sector, which has an important role in the national economy. Entrepreneurship studies that are currently trending are predominantly dominated by processes, recovery efforts and opportunities that arise as a result of disasters through entrepreneurial practices. Social capital is a description of the social relations of business actors in the form of business, professional, and friendship relationships as well as institutions and relationships with local communities. SME business actors are individuals who mainly practice socially by having a network of social relationships. Organizations are required to be able to translate knowledge that exists in individuals, groups or teams, and organizations into reality in the form of products and services produced. The study was conducted on 345 culinary SMEs in Surabaya. Descriptive analysis is used to determine the extent of the level of entrepreneurial orientation, the role of social capital and knowledge creation activities. Descriptively, SME business actors perceive the implementation of entrepreneurial orientation in running their business at a sufficient level. A good level of exploiting the potential of social capital resources consisting of personal network social capital resources; professional networks; association networks and institutional networks are considered capable of improving the business performance of SMEs. Knowledge creation in this study has four indicators, namely socialization; Externalization Indicators; Combination Indicators and Internalization Indicators. Descriptively, respondents considered that the externalization indicator had the highest average value when compared to other indicators. Companies that have a competitive advantage are able to maintain and develop the company. Entrepreneurial orientation, social capital and knowledge creation are resources that are specifically owned and are less likely to be imitated by competitors so these three variables have the potential to make SMEs have more competitive.
Social capital is modern concepts which play more important role than physical and humanistic capital in organizations and societies. The most important element in social capital is a network of relations that is considered as a source of value creator for its people and organization. Several researches have shown that entrepreneurs are encountered with significant difficulties. The lack of knowledge and skill, the lack of financial resources and the lack of the support of social networks are considered as the obstacles of entrepreneurs' activities. The aim of this research is to study the effects of social capital on entrepreneurial orientation of people based on a correlativedescriptive method which study the relations based on trust and interactional relations among people as the elements of social capital and entrepreneurial orientation such as compatibility, ability for taking risk, the access to internal control resource and tolerating defeat and ambiguity. The understudied statistical population includes 150 managers of small and medium business of Fars provinces (Iran). The obtained result shows that there is a positive and meaningful relation between social capital and entrepreneurial orientation.
Effect of Social Capital on SMEs Performance: Does Innovation Matter?
IJTMR, 2021
The study investigated how social capital influences firms to generate higher performance through innovation among SMEs in Ghana. The study employed a quantitative approach. The study employed stratified sampling to sample 240 respondents from 240 SMEs in the Eastern Region of Ghana. Primary data was gathered using a questionnaire adapted from previously validated instruments. The data gathered was analyzed using Partial Least Square (PLS) of the Structural Equation Model (SEM). The findings proved internal and external factors of the SMEs were found to be strengthened through innovation initiatives of the SMEs. The social capital initiatives of the SMEs positively and significantly enhanced the innovation practices of the SMEs. The result showed internal and external social capital initiatives of the SMEs were positively and significantly associated with the innovation practices of the firms. It concludes that the effect of social capital among SMEs on firm performance is indirectly through their level of innovation practices. The results provide empirical support to the validation of existing theories that a company's utilization of important values offer some level of competitive advantage for superior performance in an industry. We therefore recommended that Owners and Managers of SMEs take advantage of their internal social resources as well as building strategic external capital in the quest to remain competitive and enhance profitability.
Examining the link between social capital, knowledge quality, SMEs innovativeness and performance
Business Information Review
The purpose of this study was to examine the relationship between some elements of social capital, knowledge quality, and Small and Medium Enterprises (SMEs)’ innovativeness and export performance. Data were collected from owners/managers of SME exporters in Ghana. Structural Equation Modeling was used for the data analysis. The results indicate that the elements of social capital facilitate access to quality knowledge which consequently improves SMEs’ innovativeness. The study also shows that SMEs’ innovativeness affects their export performance.
2019
The paper was designed to examine the role of an entrepreneur’s social network and human capital on Small and Medium Enterprises (SMEs) performance in Nigeria. This study tries to find out if human capital moderates the relationship between social network and the SMEs performance in the country. Self-administered questionnaires were used to source data from a sample of 283 SMEs firms spread across Kano state in North-western Nigeria. Partial Least Squares Structural Equation Modelling (PLS-SEM) was utilized to test the hypotheses. The results obtained indicated that an entrepreneurial social network and human capital have significant positive effects on SMEs performance. Correspondingly, human capital moderates the relationship between the entrepreneur’s orientation and the performance of SMEs. The result implied that social network and human capital are essential drivers for firm performance. Finally, some of the study limitations include that the sample used in this study only inv...