Social Capital and Micro-Entrepreneurship

Social capital has been proven in many studies to correlate with economic development and increment in standards of living in a collective manner. This chapter presents a brief description regarding social capital and micro-enterprises that narrowly focuses on the relationship between social capital theory and entrepreneurship. The chapter further portrays the varied dimensions of social capital followed by the status of social capital from the Malaysian perspective. Finally, the chapter ends with a discussion on the effect of social capital on competitive advantage, which has been presumed to be the most important aspect for micro-enterprises.

2005 ◽  
Vol 30 (2) ◽  
pp. 103-109 ◽  
Author(s):  
Mark L. Hoelscher ◽  
James J. Hoffman ◽  
David Dawley

2019 ◽  
Vol 16 (1) ◽  
pp. 206
Author(s):  
I Gusti Ngurah Putra Suryanata

ABSTRACTThis study aims to explain about 1) the synergy of Village Credit Union (Lembaga perkreditan Desa – LPD) in Kedonganan Village in developing the social welfare and 2) to maintain the competitive advantage of LPD in Kedonganan Village in developing the social welfare. The background theory that is used in this study are Synergy Theory and Social Capital Theory. This study used qualitative method with case study approach. The data in this study is collected by in-depth interview and unstructured interview. The result of this study shows that LPD in Kedonganan Village have done a synergy with the Kedonganan’s village boards and the society to build social welfare. When doing the synergy, they use Social Capital approach, which are building a networking with micro and macro financial institutions around Kedonganan Village with Dharma (Kindness) and Catur Purusa Artha (Trust) as the basic principals. The administrator of the LPD also creating trust in society by using Tri Hita Karana as the concept. The rule that is used in maintaining LPD also referring to common law that is called as awig-awig or perarem which has become a mutual agreement among Kedonganan Village society. To maintain the competitive advantage of LPD in developing social welfare, the manager or administrator of LPD should care about internal and external factors.


2015 ◽  
Vol 28 (3) ◽  
pp. 260-277 ◽  
Author(s):  
Lorraine M. Uhlaner ◽  
Ilse A. Matser ◽  
Marta M. Berent-Braun ◽  
Roberto H. Flören

This study examines the relationship between bonding and bridging ownership social capital (OSC) for a random sample of 679 privately held small and medium-sized firms. Results confirm the positive effects of bonding OSC (quality of relationships and shared vision) on bridging OSC (network mobilization) as well as two- and three-way moderator effects of family firm identity and ownership–management overlap. Moderator effects are more robust, however, for the shared vision indicator of bonding OSC. Implications for social capital theory, social and organizational identity theory, and family firm research and practice are discussed.


2019 ◽  
Vol 93 (1) ◽  
pp. 40-64
Author(s):  
Sara Geven ◽  
Herman G. van de Werfhorst

In this article, we study the relationship between intergenerational networks in classrooms (i.e., relationships among parents in classrooms, and between parents and their children’s classmates) and students’ grades. Using panel data on complete classroom networks of approximately 3,000 adolescents and their parents in approximately 200 classes in both Germany and the Netherlands, we compare estimates based on between-student differences in intergenerational networks (i.e., between-individual estimates) to estimates based on changes students experience in their intergenerational networks over time (i.e., within-individual estimates). We also examine how the relationship between intergenerational networks and grades is contingent on students’ location in the educational system (i.e., their ability track). When considering between-individual estimates, we find some support for a positive relationship between intergenerational networks and grades. However, we find no robust support when considering within-individual estimates. The findings suggest that between-individual estimates, which most previous research has relied on, may be confounded by unobserved differences across individuals. We find little support for variations in these estimates across ability tracks. We discuss the implications for Coleman’s social capital theory on intergenerational closure.


2021 ◽  
Vol 10 (1) ◽  
pp. 624
Author(s):  
Najmul Hoda ◽  
S. L. Gupta ◽  
Mobin Ahmad ◽  
Utkarsh Gupta

The main purpose of this study is to test if the use of social networking sites (SNSs) results in any perceived social capital for the users. Putnam’s classification of social capital into bridging and bonding social capital is used for the study. The first objective of the study was to study the demographic and behavioral profile of LinkedIn users. The second objective was to test the model describing the relationship between the constructs intensity of LinkedIn usage and the two types of social capital. A structured questionnaire that included standard scales for measuring the constructs was shared on various social media platforms. The model was analyzed using PLS-SEM in R software. The results confirmed all the three hypothesized relationships and also validated the overall model. This study contributes to the validation as well as extension of social capital theory in SNS. Further, the results throw light on the new applications of SNS by the industry.


Plaridel ◽  
2021 ◽  
Vol 18 (2) ◽  
Author(s):  
Naziat Choudhury

Businesswomen in Bangladesh are using social media to do business from their homes, in support of their financial development. Social capital theory is applied to investigate the role that family and other close and external networks play in conducting business through social media. Semi-structured interviews were conducted with 31 businesswomen to understand why they chose social media for their business, and to identify the type of support they got from their social connections and the hurdles they encountered. Content analysis examined their Facebook and Instagram pages for two weeks to understand the support that their external networks provided. This study finds that family and other close networks encouraged women entrepreneurs with loans, free labour, and product promotions that contributed in building and sustaining the businesses, while external networks helped with more formal or institutional support. Meanwhile, customers provided intangible support that encouraged the businesswomen to start, survive, and succeed.


2018 ◽  
Vol 22 (5) ◽  
pp. 1015-1036 ◽  
Author(s):  
Pedro M. García-Villaverde ◽  
Job Rodrigo-Alarcón ◽  
Maria Jose Ruiz-Ortega ◽  
Gloria Parra-Requena

Purpose The purpose of this paper is to study the effect of cognitive social capital (CSC) on firms’ entrepreneurial orientation (EO) and how knowledge absorptive capacity moderates this relationship. The purpose is aimed at completing the gap in the literature regarding determinants of EO linked with knowledge. Design/methodology/approach The empirical study was carried out on a sample of 292 Spanish firms in the agri-food industry. Partial least squares (SmartPLS software) was used to evaluate the measurement and structural models. Findings CSC has a curvilinear influence (U-shaped) on EO. In addition, this relationship is accentuated with higher knowledge absorptive capacity. Practical implications Managers should promote cognitively close networks and reinforce shared goals and culture with their contacts to maintain a high EO. Furthermore, managers should strengthen their knowledge absorptive capacity to boost innovativeness, risk taking and proactiveness derived from cognitive proximity with their contacts. Originality/value This study adds value to social capital literature by pointing out a curvilinear relationship (U-shaped) between CSC and EO, in contrast to studies focussed on other dimensions of social capital, which have obtained divergent results. Furthermore, this study reinforces the key contingent role of knowledge absorptive capacity. The study provides a valuable theoretical framework of EO determinants connecting the cognitive perspective of social capital theory with a dynamic capability view.


2019 ◽  
Vol 30 (2) ◽  
pp. 357-379 ◽  
Author(s):  
Chun Kwong Chan ◽  
Yulin Fang ◽  
Huifang Li

Purpose The purpose of this paper is to develop a nuanced understanding of premium customers’ intent to adopt an interactive electronic channel (IEC) and the moderating role of social capital on perceived relative advantage (RA) in adoption. Design/methodology/approach Study findings are based on a field survey that investigates the launching of an IEC by a leading international bank in Hong Kong. Findings Among social capital dimensions, cognitive capital significantly weakens the relationship between efficacy of information acquisition and IEC adoption, while relational capital enhances the relationship between trust and adoption. Research limitations/implications This paper provides a theoretical lens based on social capital theory for evaluating the moderating effects of social capital on the relationship between RA and IEC adoption by premium customers in the banking industry. Practical implications Findings provide insights for the practice of banks when trying to deliver financial services via an IEC to the premium customer segment. Originality/value This research extends the channel choice theory to the context of banking channel adoption of premium customers; provides a better understanding of the IEC and its adoption in the more complex setting of financial consultation services; and offers insights for a better understanding of fragmented findings on the relationships between adoption intention and its antecedents in response to calls for studies on contingent factors.


2010 ◽  
Vol 15 (03) ◽  
pp. 287-300 ◽  
Author(s):  
PHILLIP COCHRANE

This study explores African-American (AA) entrepreneurship through the lens of social capital. Using a foundation of social capital theory, this study attempts to validate the hypothesis that social capital is a determinant of whether AA entrepreneurs choose to function in the formal or informal economies. One hundred and sixteen African American entrepreneurs participated in the study, which utilized respondent driven sampling, a technique for studying hidden populations. Although the results for the study failed to confirm the hypothesis, they do offer some insight into the relationship between the informal and formal economies and minority entrepreneurship.


2021 ◽  
Author(s):  
Mary K. Foster ◽  
Agnes G. Meinhard

[Paragraph 1 of Introduction] : Marketers and marketing researchers have become accustomed to thinking about consumption behaviors as expressions of personal identity embedded in social networks. This paper argues that philanthropic behaviors (whether to donate or not, amount to donate, portfolio of donations) may likewise express personal identity in the service of, or resulting from, networks of social ties – that is may be mediated by social capital. The paper examines the relationship between Jewish identity, religious practice, social capital and philanthropy in the North American Jewish community. Using social capital theory the paper argues that Jewish identity gives rise to binding social capital. This network structure, in turn, induces members to support the network through philanthropic behavior, and makes networkmediated benefits available to members. Keywords: CVSS, Centre for Voluntary Sector Studies, Working Paper Series,TRSM, Ted Rogers School of Management Citation:


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