How Structure Influence Relational Capital: The Impact Of Network Communication In Centralized Structure

AbstractUsing a unique sample of Italian manufacturing firms, we investigate the impact of relationship lending on firms’ use of trade credit. We find that firms maintaining close and long-lasting relationships with their main banks are associated with higher amounts of trade credit extended by suppliers. This result is robust to alternative measures of trade credit and relationship lending, and to different estimation techniques. We also analyze the mechanisms driving the association between relationship lending and the use of trade credit. Regression results suggest that the positive link between accounts payable and relationship lending is especially significant for firms that use to provide soft information to their lenders and for companies with greater relational abilities.Plain English Summary The existence of close and long lasting lending relationships positively affects the amount of trade credit manufacturing firms receive from their suppliers. By relying on the Survey on Italian Manufacturing Firms, we show that the positive link between relationship lending and the use of trade credit is driven by two channels: private information and relational capital. In a policy perspective, our findings reveal a need for banking regulation and supervision to encompass banking business models in evaluating banks. The current approach might not be suitable for local banks investing in soft information acquisition and could weaken SMEs’ chances to receive both bank financing and trade credit from suppliers. Moreover, from a managerial point of view, our results uncover the relevance of firms’ ability to create strong relationships with banks, suppliers, and other companies that may help alleviating financial constraints.

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Social Relational Capital as a Community Economic Development Factor

Global Economics Review ◽

10.31703/ger.2019(iv-i).11 ◽

2019 ◽

Vol IV (I) ◽

pp. 108-119

Author(s):

Mujib Ur Rahman ◽

Muhammad Faizan Malik ◽

Wisal Ahmad

Keyword(s):

Economic Development ◽

Business Community ◽

Community Economic Development ◽

Relational Capital ◽

Purposive Sampling ◽

Development Factor ◽

High Investment ◽

The Impact ◽

The Relationship

The paper examined the impact of relational capitals on community economic development. For this purpose, the handloom business community was taken as a case study from Peshawar Valley. Data was collected through purposive sampling from169 handlooms firms. The results concluded that the impact of relational capital is significant, and the relationship is positive. This study hereby suggests that government and policymakers should invest in making ties and a strong network of firms within and outside of the community; hence with high investment in making strong social-relational capital can develop the entire entrepreneurial communities.

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Measuring the impact of relational capital on customer performance in the SME B2B sector

Business Process Management Journal ◽

10.1108/bpmj-10-2016-0205 ◽

2017 ◽

Vol 23 (6) ◽

pp. 1144-1166 ◽

Cited By ~ 7

Author(s):

Lara Agostini ◽

Anna Nosella ◽

Benedetta Soranzo

Keyword(s):

Absorptive Capacity ◽

Open Innovation ◽

Moderating Effect ◽

High Tech ◽

Relational Capital ◽

Marketing Capability ◽

Content Type ◽

Innovation Practices ◽

External Actors ◽

The Impact

Purpose The purpose of this paper is to investigate the influence that different components of relational capital (marketing capability, open innovation with business and scientific partners, technological reputation, brand) have on customer performance (CP). Moreover, the moderating effect of absorptive capacity on such relationships is tested. Design/methodology/approach First, the direct relationship between the different components of relational capital and CP is analyzed through a linear regression model. Then, to test the moderating effect, two distinct regression analyses are conducted into two sub-samples, defined according to the level of absorptive capacity. The authors carried out these analyses on a sample of 150 small- and medium-sized enterprises (SMEs) in the medium- and high-tech B2B context. Findings Results of this study prove that CP is enhanced through firm marketing capability, open innovation with business partners and technological reputation, while brand and open innovation with scientific partner do not have an association with CP. In particular, the impact of marketing capability and open innovation with business actors on CP is greater for firms with higher absorptive capacity. Research limitations/implications This paper, highlighting the relevance of relational capital and absorptive capacity in improving CP, enhances our knowledge about the factors that help to strengthen the relationships with customers, which is an under-investigated issue especially for SMEs competing in B2B industries, and extends our knowledge on open innovation practices. Practical implications Findings of this paper suggest that, to achieve better CP, managers should pay special attention to nurturing their marketing capability and high-quality relationships with external actors and invest in absorptive capacity to enhance the positive effect of such linkages. Originality/value This work, combining the external perspective of relational capital and the internal organizational dimension of absorptive capacity, provides valuable insights about the knowledge and resource mix that firms might rely on to achieve better customer satisfaction and loyalty.

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Investigating the impact of satisfaction and relational capital on repurchase behavior using a text mining method

Proceedings of the 2021 International Conference on Control and Intelligent Robotics ◽

10.1145/3473714.3473817 ◽

2021 ◽

Author(s):

Zhepeng Lv ◽

Yue Jin ◽

Jinghua Huang

Keyword(s):

Text Mining ◽

Relational Capital ◽

Mining Method ◽

The Impact

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Methodology Fit in Offshoring Software Development Projects

Information Resources Management Journal ◽

10.4018/irmj.2014100104 ◽

2014 ◽

Vol 27 (4) ◽

pp. 66-81

Author(s):

Peng Xu ◽

Yurong Yao

Keyword(s):

Software Development ◽

Knowledge Sharing ◽

Project Performance ◽

Viable Alternative ◽

Development Projects ◽

Relational Capital ◽

Software Companies ◽

Development Costs ◽

Labor Resources ◽

The Impact

Offshoring has become a viable alternative for companies to lower software development costs and leverage labor resources worldwide. To achieve success in offshoring software development projects, a vendor must choose appropriate development methodologies. This study aims to examine how methodology fit affects offshoring project performance. It proposes that methodology fit affects project performance through interfirm knowledge sharing between vendors and clients. In addition, the impact of methodology fit on knowledge sharing is dependent on relational capital between vendors and clients. A survey was conducted among software companies in China that provide offshoring services. 108 completed questionnaires were collected. The results confirm this article's hypotheses.

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Non-linear effects of relational capital on supply-side resilience

International Journal of Operations & Production Management ◽

10.1108/ijopm-09-2018-0530 ◽

2019 ◽

Vol 39 (9/10) ◽

pp. 1053-1075

Author(s):

Yiyi Fan ◽

Mark Stevenson

Keyword(s):

Linear Relationship ◽

Boundary Spanning ◽

Curvilinear Relationship ◽

Tie Strength ◽

Supply Side ◽

Relational Capital ◽

Content Type ◽

The Impact ◽

The Relationship

Purpose Prior studies have largely overlooked the potentially negative consequences of a buyer’s relational capital (RC) with a supplier for supply-side resilience, assuming a positive linear relationship between the constructs. Meanwhile, the focus of research has been at an organisational level without incorporating the role of boundary spanning individuals at the interface between buyer and supplier. Drawing on social capital and boundary spanning theory, the purpose of this paper is to: re-examine the relationship between RC and supply-side resilience, challenging the linear assumption; and investigate how both the strength and diversity of a boundary spanner’s ties moderate this relationship. Design/methodology/approach Survey data are collected from 248 firms and validated using a subset of 57 attentive secondary respondents and archival data. The latent moderated structural equation method is applied to analyse the data. Findings An inverted U-shaped relationship between RC and supply-side resilience is identified. Tie strength in particular has a positive moderating effect on the relationship. More specifically, the downward RC–supply-side resilience relationship flips into an upward curvilinear relationship when boundary spanning individuals develop stronger ties with supplier personnel. Research limitations/implications A deeper insight into the RC–supply-side resilience relationship is provided. Findings are based on Chinese manufacturing firms and cross-sectional data meaning further research is needed to determine their generalisability. Practical implications In evaluating how to enhance supply-side resilience, buying firms must decide whether the associated collaborative benefits of developing RC outweigh the potential costs. Managers also need to be concerned with the impact of developing RC between organisations and enhancing the tie strength of individuals simultaneously. Originality/value The paper goes beyond the linear relationship between RC and supply-side resilience. Incorporating the moderating role of boundary spanners identifies a novel phenomenon whereby the RC–resilience relationship flips from an inverted to a U-shaped curve.

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Creating supply chain relational capital: The impact of formal and informal socialization processes

Journal of Operations Management ◽

10.1016/j.jom.2005.08.007 ◽

2006 ◽

Vol 24 (6) ◽

pp. 851-863 ◽

Cited By ~ 291

Author(s):

Paul D. Cousins ◽

Robert B. Handfield ◽

Benn Lawson ◽

Kenneth J. Petersen

Keyword(s):

Supply Chain ◽

Relational Capital ◽

Socialization Processes ◽

The Impact

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Intellectual capital and environmental concern in subsistence small businesses

Management of Environmental Quality An International Journal ◽

10.1108/meq-05-2015-0085 ◽

2017 ◽

Vol 28 (2) ◽

pp. 214-230 ◽

Cited By ~ 12

Author(s):

Carlos Maria Jardon ◽

Amandio Dasilva

Keyword(s):

Intellectual Capital ◽

Small Businesses ◽

Environmental Concern ◽

Partial Least Square ◽

Least Square ◽

Relational Capital ◽

Content Type ◽

Sustained Development ◽

Structural Capital ◽

The Impact

Purpose Small businesses created as a subsistence activity (subsistence small businesses (SSBs)), often are oriented towards the short term. The environmental performance, by contrast, is an indicator of long-term strategies. The purpsoe of this paper is to analyse how intellectual capital (IC) dimensions affect environmental concern, preparing SSBs to have a proper environmental behaviour in the future. Design/methodology/approach A method based on the partial least square technique is suggested to select the model and estimate the parameters. A sample of 113 small businesses in the timber industry in a region of Argentina was selected for this study. Findings The results indicate that IC promotes environmental concern. Relational capital directly affects environmental concern, human capital and structural capital and these, in turn, indirectly affect the environmental concern through relational capital in SSBs. Research limitations/implications The sample used is a cross-section. IC is subjectively measured. This paper only studies small businesses in the timber sector in a region of Latin America. Practical implications This paper enables practitioners and scholars to understand and make legitimate decisions and conclusions that can foster SSB growth in environmental concern. The paper suggests a combination of strategies in order to achieve a sustained development. Originality/value The authors tested the impact of dimensions of IC on environmental concern in SSB of developing countries, showing the importance of IC in sustained strategies in these companies.

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Impact of Intellectual Capital on Mergers and Acquisitions: Evidence from Developed and Emerging Capital Markets

Journal of Corporate Finance Research / Корпоративные Финансы | ISSN 2073-0438 ◽

10.17323/j.jcfr.2073-0438.14.2.2020.35-57 ◽

2020 ◽

Vol 14 (2) ◽

pp. 35-57

Author(s):

Irina Skvortsova ◽

Arina Sidelnikova

Keyword(s):

Emerging Markets ◽

Intellectual Capital ◽

Capital Markets ◽

Emerging Market ◽

Performance Level ◽

Relational Capital ◽

Target Firm ◽

Emerging Capital Markets ◽

The Impact ◽

A Performance

In this article, we analyse the influence of intellectual capital on M&A performance in developed and emerging capital markets with the use of the event studies and regression analysis methodologies. In contrast to previous research studies in this area, we assess the impact of the components of intellectual capital (human, structural, and relational capital) on firm value as a result of mergers and broaden the scarce level literature on this specific topic. We additionally present a comparative analysis of the influence of intellectual capital components on M&A performance vis-à-vis the performance of acquirers from developed and emerging capital markets.Our research sample consists of 194 cross-border deals closed in the period 2010–2018. We compare developed markets based on firms from USA, Canada, Germany, Great Britain, France, Italy and Japan and emerging markets based on firms from China, India, Brazil and Malaysia.Our findings contribute to the literature in several ways. Firstly, we document a positive and significant dependence between the level of intellectual capital of the target firm and the M&A performance level of the acquirer, irrespective of the market where the acquirer operates. We provide empirical support for the postulation that the higher the level of intellectual capital of the target firm, the higher M&A performance of the acquirer will be in both developed and emerging markets. Secondly, we empirically prove that each of the components of intellectual capital of the target firm increases M&A performance: the higher the level of human, structural or relational capital of the target firm, the higher the M&A performance level of the acquirer in both developed and emerging capital markets. Thirdly, we show that the level of impact of human capital on M&A performance is higher for emerging market acquirers, and the impact of structural capital is higher for developed market acquirers.

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Membangun Koperasi Pertanian Berbasis Anggota di Era Globalisasi

Jurnal Maksipreneur Manajemen Koperasi dan Entrepreneurship ◽

10.30588/jmp.v4i1.97 ◽

2014 ◽

Vol 4 (1) ◽

pp. 98

Author(s):

Susi Widjajani ◽

Siti Noor Hidayati

Keyword(s):

Agricultural Development ◽

National Income ◽

Network Communication ◽

Agricultural Cooperatives ◽

Strategic Role ◽

The Impact

The purpose of writing this article is to review the development of agricultural cooperatives based members in the globalization. Given the national economic developmentof agricultural development a high priority. And in this agricultural development cooperative strategic role. Agricultural cooperatives is the largest cooperative in Indonesia, but the contribution to the national income is the lowest. Infact, agricultural cooperatives (KUD) actually for med from the top (Government/Employers) and not in bottom of the community. Agricultural cooperatives lost their identity due to the impact of the on going globalization. In such conditions, the need for macro policies conducive to the development of agricultural cooperatives in Indonesia, a complete under standing of the condition of cooperatives, the need for strategic step simprove the internal conditions of the cooperative, and the need for network communication and cooperation with the stakeholders.

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