scholarly journals It’s Not Who You Know — It’s Who Knows You: Employee Social Capital and Firm Performance

2020 ◽  
Author(s):  
DuckKi Cho ◽  
Lyungmae Choi ◽  
Michael G. Hertzel ◽  
Jessie Jiaxu Wang

Purpose The link between high-performance work systems (HPWS) and firm performance can be enhanced through the mediating effect of relational correlations. By building employee social capital and incorporating relevant HR practices within the HPWS, optimum results can be attained. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The link between high-performance work systems (HPWS) and firm performance can be enhanced through the mediating effect of relational correlations. By building employee social capital and incorporating relevant HR practices within the HPWS, optimum results can be attained. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2019 ◽  
Author(s):  
Arlika Anindya Putri

Purpose – The purpose of this study is to develop a structural equation model to explain the complexrelationship between social network and firm performance by introducing the mediating role of trust, sellingcapability and pricing capability.Design/methodology/approach – The research model with hypothesis development was derived basedon the literature. To provide empirical evidence, this study carried out a survey in which the data wereequated with a list of questionnaires with a random survey of 380 small and medium enterprises (SMEs) inthe Indonesian context.Findings – This study indicates that the use of social media in management process will not affect theincreasing firm performance, unless the firms build trust upon social networks. The social network with trustallows the firms to gain a pricing capability and a selling capability, which brings a positive impact on firmperformance. The results also show that the selling and the pricing capabilities become essential following theutilizing the social media, which concerns on trust building.Research limitations/implications – This study focused on the small-to-medium context, which hasconventionally provided an exemplary site for the development of social capital theory but raises issues ofgeneralizability across different contexts.Practical implications – To the managers, it is advisable to encourage their employees to consciouslyexploit the selling capability by enhancing the business networks via social media to achieve the firmperformance.Originality/value – This paper contributes to the social capital theory by explaining the mediating role oftrust in the complex relationship between social network and firm performance. This study provides evidencethat trust plays a pivotal role in social networks, which enable the observed firms to achieve the performance.


Author(s):  
Ronald L Pegram ◽  
Camelia L Clarke ◽  
James W Peltier ◽  
K Praveen Parboteeah

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.


2019 ◽  
Vol 10 (3) ◽  
pp. 95-113
Author(s):  
Abdulkareem Salameh Awwad ◽  
Mamoun Nadim Akroush ◽  
Majdy Issa Zuriekat ◽  
Yassir Yahya Al Masoudi

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.


2019 ◽  
Vol 9 (4) ◽  
pp. 63-73
Author(s):  
Tian Hongyun ◽  
William Adomako Kankam ◽  
Florence Appiah-Twum ◽  
Isaac Gumah Akolgo

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erin Oldford ◽  
Saif Ullah ◽  
Ashrafee Tanvir Hossain

PurposeThe objective of this paper is to leverage a two-sided view of social capital to develop a model of board gender diversity and firm performance using social capital data from Northeast Regional Center of Rural Development.Design/methodology/approachThe authors examine a large sample of 2,322 US publicly listed firms over the period 1996 to 2009. The final sample consists of 14,634 firm-year observations.FindingsThe authors find that when a firm's social network is not supportive of gender diversity, corporate boards have lower levels of female representation. The strength of a social network's social ties exacerbates the relationship between social capital and board gender diversity. The authors also report a negative relationship between female board membership and firm performance in social networks that are not pro-diversity. Robustness tests reveal that the authors’ social capital view of board diversity also applies to board ethnic diversity.Research limitations/implicationsThis study focuses primarily on blue chip firms due to data constraints. It will be interesting for future researchers to investigate a broader spectrum of firms from a broader perspective of diversity beyond the study’s gender and ethnicity findings. Furthermore, this study assesses the US context, and future research could investigate firm sociability in other national contexts.Practical implicationsThis study contributes new insights to the discourse on gender diversity on corporate boards which stand to inform both policy and practice. The results of the study can inform the position of an industry association on board gender diversity, with guidance on how messaging across networks can be more effective should it account for the hidden bias that the authors uncover in the current study. From a manager's perspective, this study can help those managers and boards trying to enhance board gender diversity by providing a more complete understanding of the factors that can limit progress.Originality/valueThis study contributes a social capital view of board gender diversity to the growing literature of corporate governance, board diversity and local environmental influences on corporate policies.


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