The role of social capital in augmenting strategic renewal of SMEs: does entrepreneurial orientation and organizational flexibility really matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samar Hayat Khan ◽  
Abdul Majid ◽  
Muhammad Yasir ◽  
Asad Javed ◽  
Hassan Ahmed Shah

PurposeThe objective of this study is to evaluate the key issues that how social capital augments the initiation of strategic renewal through the mediating role of entrepreneurial orientation and the moderating role of organizational flexibility. In the context of Small and Medium Enterprises (SMEs) of developing economies, the study developed and tested the theoretical model of strategic renewal for analyzing its major outputs.Design/methodology/approachThis study utilized cross-sectional design and employ quantitative approach. The data were collected from the owner, managers and executive directors of pharmaceutical SMEs of Pakistan. The study used statistical analysis of correlation and regression for the analysis of data.FindingsThe study discovered that entrepreneurial orientation mediates the positive relationship of social capital and strategic renewal. Moreover, high organizational flexibility strengthens the association between social capital and strategic renewal of SMEs.Originality/valueThis research contributes to the body of knowledge by providing empirical evidence that how to thrive the mechanism of strategic renewal. The study further provides understanding of the effects of organizational social capital, entrepreneurial orientation and organizational flexibility on strategic renewal.

2017 ◽  
Vol 38 (2) ◽  
pp. 229-253 ◽  
Author(s):  
Trong Tuan Luu

Purpose The purpose of this paper is to investigate the role of ambidextrous leadership in fostering entrepreneurial orientation (EO) and operational performance. The research also seeks an insight into the moderating role that organizational social capital (OSC) plays on the relationship between ambidextrous leadership and EO. Design/methodology/approach The responses to the questionnaire survey were collected from 427 managers from software companies in Vietnam business context. Findings The data analysis verified the positive effect of ambidextrous leadership on EO, which was positively moderated by OSC. The research results also shed light on the predictive role of EO for the organization’s operational performance. Originality/value This research contributes to literature through identifying the convergence of entrepreneurship and operations management research streams, and the moderation role of OSC for the ambidextrous leadership-EO relationship.


Author(s):  
Mufaro Dzingirai

Purpose Entrepreneurship has increasingly become a subject of interest for scholars and policymakers in an attempt to reduce poverty in agricultural communities across the world, especially in Africa. Accordingly, the purpose of this paper is to examine the role of entrepreneurship in reducing poverty in agricultural communities of Lower Gweru, Zimbabwe. Design/methodology/approach Exploratory research design informed the data collection and analysis in this study. In-depth interviews were conducted with 20 owners of agribusinesses from various socio-economic backgrounds. The collected data from the field were analyzed using thematic analysis. Findings The results revealed that entrepreneurship plays a catalytic role in poverty reduction in agricultural communities through food security, skill transfer, employment creation, income generation and a decrease in food costs. Research limitations/implications This study focused on four agricultural communities in Lower Gweru which can limit the generalizability of the results to other contexts. Furthermore, this inquiry is a cross-sectional study that did not capture the longitudinal factors that can affect entrepreneurship and poverty reduction in agricultural communities. Practical implications The research outcomes have some practical implications for the Zimbabwean government and microfinance institutions in designing policies and programs to reduce poverty in marginalized agricultural communities. The findings are also useful for non-governmental organizations in designing, monitoring and evaluating poverty reduction programs in agricultural communities. Originality/value This study advances, contextualizes and enriches the body of knowledge concerning agricultural entrepreneurship and poverty reduction in the under-researched setting of agricultural communities. Notably, this study captures the African flavor in the agricultural entrepreneurship and poverty reduction discourse by focusing on the unique Zimbabwean context.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sabeen Hussain Bhatti ◽  
Dmitriy Vorobyev ◽  
Ramsha Zakariya ◽  
Michael Christofi

PurposeAs an integral part of intellectual capital (IC), social capital (SC) has been studied as an asset crucial to social relationships among individuals and groups of individuals, which in turn have a significant impact on organizational performance outcomes. This study investigates the impact of organizational social capital (OSC) on employee creativity through the mediation role of knowledge sharing (KS) and moderation of work meaningfulness (WM).Design/methodology/approachThe authors base the analysis on employee-level data gathered via a cross-sectional survey designed for this study. The authors surveyed 217 employees of the pharmaceutical industry in Pakistan. The authors run a confirmatory factor analysis (CFA) and use structural equation modeling (SEM) and Hayes method to test the hypotheses.FindingsThe authors find that OSC positively affects employees’ willingness to share their knowledge with colleagues, which in turn has a positive effect on employee creativity (EC). The results also show that the relationship between social capital and knowledge sharing is moderated by work meaningfulness.Research limitations/implicationsThis study contributes to the IC in general and the SC literature in particular, by providing empirical evidence that shows how creativity could be a focal and pivotal performance outcome of organizational social capital through the moderated mediation roles of work meaningfulness and knowledge sharing.Originality/valueThe authors adopt the concept of SC from the organizational level to the individual level, examining how an individual's perception of organizational capital influences his or her creative behavior and exploring the role of KS and job meaningfulness (JM) in this relationship.


2018 ◽  
Vol 45 (5) ◽  
pp. 829-847 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
John C. Munene ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga

Purpose The purpose of this paper is to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda. Design/methodology/approach The current study used cross-sectional research design and a semi-structured questionnaire was used to collect data for this study. The study applied structural equation modeling through bootstrap approach in AMOS to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion. Findings The results indicated that social capital significantly mediates the relationship between financial intermediation and financial inclusion in rural Uganda. Therefore, it can be deduced that social capital among the poor play an important role in promoting financial intermediation for improved financial inclusion in rural Uganda. Research limitations/implications Although the sample was large, it may not be generalized to other segments of the population. Data were collected from only poor households located in rural Uganda. Besides, the study was cross-sectional, thus, limiting efforts in investigating certain characteristics of the sample over time. Perhaps future studies could adopt the use of longitudinal research design. Practical implications Financial institutions such as banks should rely on social capital as a substitute for physical collateral in order to promote financial inclusion, especially among the poor in rural Uganda. Originality/value This study provides empirical evidence on phenomenon not studied in rural areas in Sub-Saharan Africa where the poor use social capital embedded in customs and norms for doing business. The results highlight the importance of social capital in mediating the relationship between financial intermediation and financial inclusion of the poor in rural Uganda.


Author(s):  
Dana Minbaeva ◽  
Steen Erik Navrbjerg

Purpose – The purpose of this paper is to investigate how the implementation of headquarters-originated employment practices affect multinational corporation (MNC) ability to exploit the value of organizational social capital of the acquired subsidiary. Design/methodology/approach – The authors use qualitative insights collected over 16 years from a Danish company to illustrate how a foreign MNC’s interference with the balanced structure of relations, norms, and roles in a subsidiary jeopardized the value of existing social capital. Findings – The authors argue that changes in the collective perception of employment practices create the collective response, constructive or destructive, resulting respectively in the gain or loss of the performance benefits arising from organizational social capital. Practical implications – The authors suggest two guidelines and two general propositions for future research on the value of organizational social capital in international takeovers. Originality/value – The results indicate that local management and employees could use organizational social capital as a unique feature of the local business system when competing with other subsidiaries in the same MNC.


2018 ◽  
Vol 24 (7/8) ◽  
pp. 363-379 ◽  
Author(s):  
Teresa Rebelo ◽  
Isabel Dórdio Dimas ◽  
Paulo Renato Lourenço ◽  
Ângela Palácio

PurposeThe purpose of this paper was to contribute to a deeper understanding of the effects of transformational leadership on team performance, examining the role of team psychological capital (team PsyCap) and team learning behaviours as intervening mechanisms in that relationship.Design/methodology/approachA quantitative study with a cross-sectional design was conducted. The sample was composed of 82 teams from 57 Portuguese companies. Hypotheses were tested through structural equation modelling.FindingsResults revealed that transformational leadership is positively related to team PsyCap, which, in turn, is positively related to team learning behaviours. Moreover, the study’s findings supported the indirect influence of transformational leadership on team performance, through the role played by team PsyCap and team learning behaviours.Originality/valueThis is the first study that considers the mediating role of team PsyCap and team learning behaviours in the relationship between transformational leadership and team performance. In this manner, the present research contributes to the body of research on leadership, highlighting the way through which leadership might translate into team performance. Moreover, it contributes also to the positive organisational behaviour literature, identifying both antecedents and consequents of team PsyCap. The study’s findings encourage organisations to develop ways of reinforcing transformational leadership behaviours and psychological capital among teams.


2016 ◽  
Vol 22 (4) ◽  
pp. 556-583 ◽  
Author(s):  
Cristina Dai Prá Martens ◽  
Fabrício Martins Lacerda ◽  
Ana Claudia Belfort ◽  
Henrique Mello Rodrigues de Freitas

Purpose – Research on entrepreneurial orientation (EO) has attracted researchers’ attention for over 30 years. The purpose of this paper is to comprehensively analyze the body of literature resulting from 30 years of research in EO, and to answer the following questions: what are the major themes that have emerged? What areas are missing? What degree of convergence do we see in the field of EO, and what concepts/topics has the field converged around? Design/methodology/approach – A bibliometric study with a sample of 405 articles published from January 1987 to July 2014 was developed. Techniques of bibliometric, lexical, and content analysis were used. The analysis involved: the evolution of published articles; the main authors, their nationalities, and institutional affiliations; citation and co-citations analysis; the journals that have published the most articles; and the most frequently-searched topics. Opting for bibliometric techniques permit an analysis of a larger number of articles and a greater variety of articles than other methodologies such as meta-analyses and systematic review studies. Accordingly, a more comprehensive look at the field of EO can be taken. Findings – Two distinct but complementary classifications are proposed to characterize the body of the literature resulting from 30 years of research in EO. The first one demonstrates that the field presents a convergence of the themes in four axis which together comprise studies on EO: performance, strategy, entrepreneurial attitude, and management. The second one presents the frequency of occurrence of the themes in the field: high-frequency themes or classical themes, frequently in the literature; moderate-frequency themes or emerging issues have not been sufficiently explored; low-frequency themes or potential opportunities related to understudied issues and contexts less frequently surveyed. A future research agenda is proposed for emerging themes and specific contexts. Practical implications – The identification of key themes in the field of EO contributes to assess the research evolution in order to recognize emerging themes and contexts, and the research gaps. With this, it is possible to lead new studies to cover a lack of research and advance knowledge in the field. The themes most studied also show the contribution for EO to organizational practice, especially in relation to the impact on the performance, the stimulus to the development of innovations, and the effects on organizational growth. Additionally, the identification of the authors most cited, most productive on the theme and the identification of the core journals for publishing of the area is recommended as a general reference for researchers interested in the topic of EO. Social implications – Although EO literature has been widely developed in Anglo regions (especially in the USA and UK) and Germanic Europe (especially Spain), there are others lacking these studies, especially Latin America, sub-Saharan Africa, Eastern Europe, and Middle East, with rare articles published internationally. The results can guide the advancement of research in these different contexts and realities where even issues more widely treated in the literature have been unexplored. The lack of studies in certain contexts can lead to new studies for inserting new insights into EO, such as potential differences between developed regions and in development. For regions where the studies on EO are more developed, the results of this paper contribute to signaling issues and contexts little explored that may be the focus of attention. Originality/value – The generation of literature indicators of EO through bibliometric fills a research gap on the theme, providing a more comprehensive view of the field and of the current status of the research on EO. Identifying the most frequent topics in EO literature, and little-explored themes and contexts makes it possible to propose an agenda for future research and knowledge generation on EO. Thus, it is suggested the development of studies focus on emerging themes like growth, learning, knowledge, resources, and capabilities; also in specific contexts with potential for aggregating new knowledges in the EO field such as family firms, non-profit organizations, social contexts, the public sector, university, spin-off, firms in emerging and developing economies.


2019 ◽  
Vol 20 (1) ◽  
pp. 51-70 ◽  
Author(s):  
M J Malebana

This paper investigated the relationship between social capital and entrepreneurial intention using the theory of planned behaviour (TPB). The study was carried out by means of a cross-sectional survey and included 329 final-year commerce students at a rural university in the Limpopo province. A structured questionnaire was used to collect the data. The results show that social capital is significantly related to entrepreneurial intention, the attitude towards becoming an entrepreneur and perceived behavioural control. The findings indicate that the TPB is a valuable model for understanding the relationship between social capital and entrepreneurial intention. The results indicate that individuals are more likely to form intentions to start a business when they think that their decision to do so would be approved of by those close to them, when entrepreneurial activity is positively valued in the society, when they know other people who are entrepreneurs and successful entrepreneurs, and believe that they would be supported by those close to them when starting a business. This study contributes to the body of knowledge by shedding light on the role of social capital in the formation of entrepreneurial intention in a South African context.


2018 ◽  
Vol 47 (4) ◽  
pp. 913-930 ◽  
Author(s):  
Usman Raja ◽  
Dave Bouckenooghe ◽  
Fauzia Syed ◽  
Saima Naseer

PurposeUsing social identity theory, the authors hypothesize that transformational leadership (TL) leads to better person-organization fit (P-O fit), which in turn contributes to the emergence of organizational social capital (i.e. OSC). Furthermore, the authors suggest that the relationship between P-O fit and OSC is contingent upon the level of TL. The paper aims to discuss these issues.Design/methodology/approachField study data were used to test the hypotheses. In total, 336 employees from eight different service sector organizations in Pakistan participated in this study. Hierarchical linear modeling was used to analyze the data.FindingsIn support of the hypotheses, the authors found that TL was positively related to both P-O fit and OSC. Also, P-O fit mediated the TL-OSC relationship. Finally, TL moderated the relationship between P-O fit and OSC.Research limitations/implicationsCross-sectional data were collected through self-reports, which raises concerns of reporting bias.Practical implicationsManagers can benefit from the study by focusing on TL as a vehicle for not only achieving change, but also for creating an environment that facilitates better P-O fit and enhanced OSC.Social implicationsThis study provided a rare opportunity to examine the proposed relationships in a developing country. This enhances our insight into the efficacy of theories that have been mainly developed and tested in developed countries.Originality/valuePrevious research hypothesized P-O fit as a mediator between leadership and performance, yet failed to receive support. The current study is unique by demonstrating that TL, as a relational leadership style, contributes to building an important resource (OSC) through the mediating effect of P-O fit.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luu Tien Dung ◽  
Huynh Thi Thuy Giang

Purpose This study aims to reveal the effect of the two international intrapreneurship activities of employee strategic renewal behaviour and new business venture behaviour on small and medium enterprises (SMEs)’s export performance with the direct and indirect effects of transformational leadership, international entrepreneurial orientation and internal corporate social responsibility (CSR) practices. Design/methodology/approach The study sample consists of 461 employees at 168 Vietnamese import and export SMEs in the Ho Chi Minh City of Vietnam. The data is analysed by structural equation modelling. Findings The paper reveals that the two international intrapreneurship activities of employee strategic renewal behaviour and new business venture behaviour significantly contribute to SMEs’ export performance. Transformational leadership, internal CSR practice and international entrepreneurial orientation positively and significantly direct influence the two international intrapreneurship activities. The effects of transformational leadership on international intrapreneurial behaviours are partially mediated by firm internal CSR practices and international entrepreneurial orientation. Research limitations/implications Firms would have to form the architecture and mechanisms to apply internal CSR and international entrepreneurship orientation for supporting the dedication of international intrapreneurship with a transformational leadership base. Originality/value The study contributes to the body of knowledge on international business by integrating resource-based view theory and dynamic capabilities theory in a way that benefits entrepreneurship and SMEs’ export performance.


Sign in / Sign up

Export Citation Format

Share Document