Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability
Social capital is a concept that describes good quality social relations that can lead to mutual benefits. The social capital theory thrives on relationships in networks to gain access to resources, especially information benefits not available to non-members of the network. The study reports the...
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| Format: | Article |
| Language: | English |
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EconJournals
2019-07-01
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| Series: | International Review of Management and Marketing |
| Online Access: | https://www.econjournals.com/index.php/irmm/article/view/8108 |
| _version_ | 1797921090079555584 |
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| author | Tian Hongyun William Adomako Kankam Florence Appiah-Twum Isaac Gumah Akolgo |
| author_facet | Tian Hongyun William Adomako Kankam Florence Appiah-Twum Isaac Gumah Akolgo |
| author_sort | Tian Hongyun |
| collection | DOAJ |
| description |
Social capital is a concept that describes good quality social relations that can lead to mutual benefits. The social capital theory thrives on relationships in networks to gain access to resources, especially information benefits not available to non-members of the network. The study reports the effects of social capital on firm performance. The study further examines the moderating role of entrepreneurial orientation in the relationship between social capital and firm performance; and the mediating role of dynamic capabilities in the relationship between social capital and firm performance. Using SmartPLS software 3.2.8 to analyze primary data collected from 787 small and medium-sized enterprises (SMEs) operating in Ghana, the results show that social capital has a positive and direct relationship with firm performance in Ghana. The findings suggest that EO moderates the relationship between social capital and firm performance. Again, dynamic capabilities mediate the relationship between social capital and firm performance. The study also provides managers with practical ways of building relationships within their networks for achieving competitive advantage in the current business environment.
Keywords: Social capital, Entrepreneurial Orientation, Dynamic capabilities and firm performance
JEL Classifications: L31, M1
DOI: https://doi.org/10.32479/irmm.8108
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| first_indexed | 2024-04-10T14:12:10Z |
| format | Article |
| id | doaj.art-5ba31e2528b742b9bb2a6e11234d293e |
| institution | Directory Open Access Journal |
| issn | 2146-4405 |
| language | English |
| last_indexed | 2024-04-10T14:12:10Z |
| publishDate | 2019-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Review of Management and Marketing |
| spelling | doaj.art-5ba31e2528b742b9bb2a6e11234d293e2023-02-15T16:09:42ZengEconJournalsInternational Review of Management and Marketing2146-44052019-07-01944022Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic CapabilityTian Hongyun0William Adomako Kankam1Florence Appiah-Twum2Isaac Gumah Akolgo3School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang 212013, Jiangsu, P.R. China.School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang 212013, Jiangsu, P.R. China.School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang 212013, Jiangsu, P.R. China.School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang 212013, Jiangsu, P.R. China. Social capital is a concept that describes good quality social relations that can lead to mutual benefits. The social capital theory thrives on relationships in networks to gain access to resources, especially information benefits not available to non-members of the network. The study reports the effects of social capital on firm performance. The study further examines the moderating role of entrepreneurial orientation in the relationship between social capital and firm performance; and the mediating role of dynamic capabilities in the relationship between social capital and firm performance. Using SmartPLS software 3.2.8 to analyze primary data collected from 787 small and medium-sized enterprises (SMEs) operating in Ghana, the results show that social capital has a positive and direct relationship with firm performance in Ghana. The findings suggest that EO moderates the relationship between social capital and firm performance. Again, dynamic capabilities mediate the relationship between social capital and firm performance. The study also provides managers with practical ways of building relationships within their networks for achieving competitive advantage in the current business environment. Keywords: Social capital, Entrepreneurial Orientation, Dynamic capabilities and firm performance JEL Classifications: L31, M1 DOI: https://doi.org/10.32479/irmm.8108 https://www.econjournals.com/index.php/irmm/article/view/8108 |
| spellingShingle | Tian Hongyun William Adomako Kankam Florence Appiah-Twum Isaac Gumah Akolgo Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability International Review of Management and Marketing |
| title | Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability |
| title_full | Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability |
| title_fullStr | Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability |
| title_full_unstemmed | Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability |
| title_short | Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability |
| title_sort | effect of social capital on firm performance the role of entrepreneurial orientation and dynamic capability |
| url | https://www.econjournals.com/index.php/irmm/article/view/8108 |
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