The Impact of Social Capital from Shareholders on Firm Performance: An Emerging Country Tests

2011 ◽  
Author(s):  
Chien-Hui Chuang ◽  
Anne Wu
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Emerging Country ◽  
The Impact

The impact of trust on social and financial capital acquisition: A resource integration perspective in minority-owned entrepreneurial organisations

2022 ◽  
pp. 026624262110553
Author(s):  
Ronald L Pegram ◽  
Camelia L Clarke ◽  
James W Peltier ◽  
K Praveen Parboteeah
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Policy Implications ◽  
Financial Capital ◽  
Resource Integration ◽  
Entrepreneurial Success ◽  
Negative Effect ◽  
Research Findings ◽  
The Impact ◽  
Minority Entrepreneurs

Although effective resource integration is a critical requisite for entrepreneurial success, the literature suggests there are crucial gaps for minority entrepreneurs. We examine how interracial distrust (ID), an indicator of the extent to which minority entrepreneurs distrust other races, is related to internal and social capital. We examine the relationships of such capitals on the willingness to borrow from banks and friends, and explore the link with firm performance. Using a sample of 276 primarily African American entrepreneurs, we find support for most of our hypotheses. We find that ID is negatively associated with external social capital and a willingness to borrow from banks. Surprisingly, we found that ID had a negative effect on internal social capital and a willingness to borrow from friends. We also found that internal and external social capital was positively related to firm performance. We discuss the implications of some of these surprising research findings as well as the policy implications.

The Impact of Social Capital, Managerial Human Capital and Managerial Knowledge Structure on Firm Performance

2019 ◽  
Vol 10 (3) ◽  
pp. 95-113
Author(s):  
Abdulkareem Salameh Awwad ◽  
Mamoun Nadim Akroush ◽  
Majdy Issa Zuriekat ◽  
Yassir Yahya Al Masoudi
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Firm Performance ◽  
Structural Equation ◽  
Knowledge Structure ◽  
Knowledge Structures ◽  
Equation Modeling ◽  
Telecommunications Sector ◽  
Managerial Knowledge ◽  
The Impact

This article aims to examine the relationships between external and internal social capital, managerial human capital, and managerial knowledge structures, respectively. It also examines the effect of managerial human capital and managerial knowledge structures on firm performance in the telecommunications sector in Jordan. A questionnaire was distributed to 250 managers in the telecommunications sector in Jordan. Utilizing structural equation modeling, it was found that external social capital has a positive significant effect on internal social capital and managerial human capital. Internal social capital has positively and significantly affected managerial knowledge structures. Furthermore, both managerial human capital and managerial knowledge structure had affected firm performance positively. As technology is expanding in this sector, relevant knowledge and information is becoming a source of competitive advantage, thus managers in this sector should build beneficial ties that might enhance human resources' capabilities that benefit the decision-making processes.

Exploring the family effect on firm performance

2015 ◽  
Vol 21 (6) ◽  
pp. 898-917 ◽  
Author(s):  
Yosra Mani ◽  
Lassaad Lakhal
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Family Firms ◽  
Family Firm ◽  
Social Capital Theory ◽  
Three Dimensions ◽  
Capital Theory ◽  
Cognitive Dimension ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to investigate how internal social capital – as a part of the familiness resources– affects family firm performance. The social capital theory states that internal social capital within family businesses is composed of three dimensions: the structural dimension, the relational dimension, and the cognitive dimension. The aim of the paper is to study the relationship between each dimension of internal social capital and family firm performance. Design/methodology/approach – The paper employs an empirical investigation which is based on a sample of 114 Tunisian family firms. Findings – Results demonstrate that the structural and relational dimensions are positively associated with financial and non-financial family firm’s performance. However, the cognitive dimension has a significant positive effect on financial performance but not on non-financial family firm performance. Originality/value – The proposed model aims to test the direct effect of internal social capital dimensions on financial and non-financial family firm’s performance. Besides, there is a lack of empirical evidence aiming at understanding the impact of structural, cognitive and relational social capital on the performance of family firms.

Culture and social capital network effects on the survival and performance of high-tech micro and small firms

2018 ◽  
Vol 25 (1) ◽  
pp. 81-106 ◽  
Author(s):  
Cory Hallam ◽  
Carlos Alberto Dorantes Dosamantes ◽  
Gianluca Zanella
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Empirical Research ◽  
Cultural Context ◽  
Small Firms ◽  
Mediating Effect ◽  
High Tech ◽  
Regional Culture ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to propose an integrated theory to explain the effect of regional culture on high-technology micro and small (HTMS) firm outcomes. The integrated culture-social capital outcomes (CSCO) model examines the impact of culture on performance and evolution of HTMS firms through the mediating effect of intra-firm and inter-firm social capital. Design/methodology/approach Theoretical insights from social capital and culture are combined with the results of previous empirical observations to explain cross-cultural differences in the performance of HTMS firms. The authors then propose the CSCO model as a means to integrate and advance theory building. Findings The CSCO model explains the impact of culture on performance and evolution of HTMS firms through intra-firm and inter-firm social capital networks. Cultural context affects the performance of high-tech micro and small firms through the nature and structure of the networks involved in building and exploiting inter-firm and intra-firm social capital. Moreover, regional culture indirectly influences the balance between positive and negative effects of social capital on firm performance. These observations explain inconsistent findings from past empirical research and contribute to understanding the “embeddedness paradox” of social capital. Research limitations/implications The present model is not comprehensive. It does not account for many contextual factors identified in organizational network and cluster literature that contribute to the development of HTMS firms. Future research should consider the relationships between the three dimensions of social capital and seek to test the model with rigorous data collection and analysis. Originality/value While past studies focus on the direct relationship between regional culture and firm performance, this paper proposes the mediating effect of internal and external social capital between cultural context and firm performance. This proposal contributes to social capital and entrepreneurship literature and provides a potential explanation for inconsistent findings in past empirical research.

Social Capital and Entrepreneurial Performance in Russia: A Longitudinal Study

2003 ◽  
Vol 24 (4) ◽  
pp. 535-556 ◽  
Author(s):  
Bat Batjargal
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Social Embeddedness ◽  
Face To Face ◽  
Structural Embeddedness ◽  
The Social ◽  
Relational Embeddedness ◽  
Soviet Russia ◽  
The Impact

Drawing on the social embeddedness perspective, this article examines the impact of entrepreneurs' social capital on their firm performance in post-Soviet Russia. Based on face-to-face interviews with 75 Russian entrepreneurs in 1995 and follow-up interviews in 1999, the study examines effects of structural embeddedness, relational embeddedness and resource embeddedness on firm performance. The main finding is that relational embeddedness and resource embeddedness have direct positive impacts on firm performance, whereas structural embeddedness has no direct impacts on performance.

scholarly journals A Meta-Analysis on the Impact of Social Capital on Firm Performance in China’s Transition Economy

2020 ◽  
Vol 12 (7) ◽  
pp. 2642 ◽  
Author(s):  
Tu LYU ◽  
Xiangfeng JI
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Transition Economy ◽  
Meta Analysis ◽  
High Tech ◽  
The Social ◽  
Specific Performance ◽  
Market Areas ◽  
The Impact ◽  
The Relationship

There is almost no research consensus on the influence of social capital on firm performance in China, which motivates our study in this paper. Our research aim here is to identify the effect of contextual and methodological moderators on the relationship between social capital and firm performance in China’s transition economy. Meta-analysis is employed to explore the impact of social capital on firm performance and to identify moderators affecting the relationship based on 106 independent studies between 2008 and 2018. The results demonstrate that the social capital–performance link is positive and significant in China. Particularly, social capital has a stronger positive relationship with performance in high-tech industries or in low-level marketization. Meanwhile, the social capital–performance link depends on the specific performance measures and dimensions. The paper clearly indicates the value of cultivating social capital and reveals that distinct types of social capital are needed at different points in different industries and market areas.

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