Impact of Social Capital on Small Firm Performance in West Bengal
TL;DR: In this article, the impact of social capital on firm performance through the constructs of network ties, trust and shared vision was analyzed through a structured questionnaire on a sample of 100 small firms in West Bengal with 50 firms having membership in industry/trade associations as the experimental group and another 50 firms with only informal connections as the control group.
Abstract: Formal and informal networks empower small firms to generate social capital by forging network ties, building on trust and sharing a vision among stakeholders. It enables them to obtain necessary resources, support, information and knowledge, which may be otherwise inaccessible to them. This study analyses the impact of social capital on firm performance through the constructs of network ties, trust and shared vision while drawing a comparison between firms associated with formal and informal networking. An empirical study was conducted via a structured questionnaire on a sample of 100 small firms in West Bengal with 50 firms having membership in industry/trade associations as the experimental group and another 50 firms having only informal connections as the control group. Findings of the multiple regression analysis reveal that the impact of social capital on firm performance is significantly greater in firms engaged in formal and informal networking in contrast to firms embedded only in the informal ne...
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TL;DR: In pursuit of the beneficial outcomes of entrepreneurship, governments and regional development organizations enact policies to stimulate entrepreneurial activity as mentioned in this paper, which is a growing focus of policymakers i.i.d.
Abstract: In pursuit of the beneficial outcomes of entrepreneurship, governments and regional development organisations enact policies to stimulate entrepreneurial activity. A growing focus of policymakers i...
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TL;DR: In this paper, the authors examined the effect of relational and cognitive social capital on structural social capital and structural performance of micro-enterprises owned and managed by women in Peninsular Malaysia.
Abstract: Social capital and its dimensions are highly interrelated, and the outcome of social capital provides entrepreneurs with resources and knowledge that are not available in the first place. The objective of this study is to examine the effect of relational and cognitive social capital on structural social capital and the effect of structural social capital on the performance of micro-enterprises owned and managed by women in Peninsular Malaysia. This study uses a cross-sectional approach, and quantitative data are collected through structured interviews. It was found that cognitive social capital has a significant positive effect on structural social capital, and structural social capital has a significant positive effect on micro-enterprise performance. It was found that relational social capital has a positive but insignificant effect on structural social capital. Therefore, women entrepreneurs should emphasize on making the communication process easier and on ensuring that their business values, norms, interpretation, and meaning are shared and communicated to relevant parties to improve network ties and to build a dense network, which is essential in providing access to resources and knowledge. This, in return, is expected to improve the micro-enterprise performance in Malaysia.
55 citations
Cites background from "Impact of Social Capital on Small F..."
...Among few studies focused across the industry, Saha and Banerjee (2015) used a quasi-experimental design where they compared the impact of social capital on small enterprise performance in West Bengal, India....
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TL;DR: In this article, the effect of different types of networking, namely, business networking, financial networking and political networking, on the performance of new ventures and the extent to which competitive advantage influences the process was investigated.
Abstract: The purpose of this paper is to investigate the effect of different types of networking, namely, business networking, financial networking and political networking, on the performance of new ventures and the extent to which competitive advantage influences the process.,Data were collected through a structured questionnaire using sample size of 319 newly established ventures in Pakistan – an emerging economy. The hypotheses were tested with structural equation modeling by using AMOS 21.,Results of the study indicate that business networking, financial networking and political networking significantly and positively contribute to new ventures performance and competitive advantage. Results also show that competitive advantage is a strong mediator between financial networking and new venture performance, as well as between business networking and new venture performance, respectively. However, in case of relationship between political networking and new venture performance, competitive advantage plays only a partial mediating role.,The study suggests that the owners and managers of new ventures should devote considerable efforts to developing all the three types of networks; in particular these networks are important for newly established ventures operating in emerging markets to access resources and to enhance performance.,Extensive review of available literature indicates that this is the first paper to assess the impact of networking on new ventures’ performance with a mediating role of competitive advantage. This study contributes to the existing literature through empirical evidence.
52 citations
TL;DR: In this article , the role of social capital in creating collaborative innovation and collective intelligence and maintaining organizational sustainability in the unprecedented COVID-19 crisis was explored empirically, and the results indicate that social capital significantly impacts collaborative innovation, collective intelligence, and organization sustainability during the COVID19 crisis.
Abstract: This study empirically explores the role of social capital in creating collaborative innovation and collective intelligence and maintaining organizational sustainability in the unprecedented COVID-19 crisis. Data were collected from a sample of 289 managers, directors and heads of departments of top 50 manufacturing firms in Jordan and analyzed using Smart-PLS-SEM. The results indicate that social capital significantly impacts collaborative innovation, collective intelligence and organization sustainability during the COVID-19 crisis. They also reveal that collective intelligence significantly impacts collaborative innovation and organization sustainability. This study enriches the literature on social capital, collaborative innovation and collective intelligence. It elucidates the role of such dynamic capabilities in maintaining both organizational sustainability and the chance of recovery from unprecedented crises.
44 citations
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TL;DR: In this paper, it is argued that the degree of overlap of two individuals' friendship networks varies directly with the strength of their tie to one another, and the impact of this principle on diffusion of influence and information, mobility opportunity, and community organization is explored.
Abstract: Analysis of social networks is suggested as a tool for linking micro and macro levels of sociological theory. The procedure is illustrated by elaboration of the macro implications of one aspect of small-scale interaction: the strength of dyadic ties. It is argued that the degree of overlap of two individuals' friendship networks varies directly with the strength of their tie to one another. The impact of this principle on diffusion of influence and information, mobility opportunity, and community organization is explored. Stress is laid on the cohesive power of weak ties. Most network models deal, implicitly, with strong ties, thus confining their applicability to small, well-defined groups. Emphasis on weak ties lends itself to discussion of relations between groups and to analysis of segments of social structure not easily defined in terms of primary groups.
37,560 citations
TL;DR: In this article, the extent to which economic action is embedded in structures of social relations, in modern industrial society, is examined, and it is argued that reformist economists who attempt to bring social structure back in do so in the "oversocialized" way criticized by Dennis Wrong.
Abstract: How behavior and institutions are affected by social relations is one of the classic questions of social theory. This paper concerns the extent to which economic action is embedded in structures of social relations, in modern industrial society. Although the usual neoclasical accounts provide an "undersocialized" or atomized-actor explanation of such action, reformist economists who attempt to bring social structure back in do so in the "oversocialized" way criticized by Dennis Wrong. Under-and oversocialized accounts are paradoxically similar in their neglect of ongoing structures of social relations, and a sophisticated account of economic action must consider its embeddedness in such structures. The argument in illustrated by a critique of Oliver Williamson's "markets and hierarchies" research program.
25,601 citations
Additional excerpts
...(1 = once a year or less, 2 = six times a year, 3 = once a month, 4 = once a week, 5 = daily) (Baer, 2010; Granovetter, 1973; Gronum et al., 2012; Perry-Smith, 2006)....
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TL;DR: In this article, the authors present a model that incorporates this overall argument in the form of a series of hypothesized relationships between different dimensions of social capital and the main mechanisms and proces.
Abstract: Scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as “the organizational advantage,” rather than focus on the causes and consequences of market failure. Typically, researchers see such organizational advantage as accruing from the particular capabilities organizations have for creating and sharing knowledge. In this article we seek to contribute to this body of work by developing the following arguments: (1) social capital facilitates the creation of new intellectual capital; (2) organizations, as institutional settings, are conducive to the development of high levels of social capital; and (3) it is because of their more dense social capital that firms, within certain limits, have an advantage over markets in creating and sharing intellectual capital. We present a model that incorporates this overall argument in the form of a series of hypothesized relationships between different dimensions of social capital and the main mechanisms and proces...
15,365 citations
"Impact of Social Capital on Small F..." refers background in this paper
...Social capital is referred to as ‘the sum of the actual and potential resources embedded within, available through, and derived from the network of relationships possessed by an individual or social unit’ (Nahapiet & Ghoshal, 1998)....
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...Nahapiet and Ghoshal (1998) categorised social capital into three interrelated dimensions: cognitive (shared codes, language and shared narratives), relational (trust, norms, obligations and identification) and structural (network ties, network configuration and appropriate organisation) for…...
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TL;DR: Putnam as discussed by the authors showed that crucial factors such as social trust are eroding rapidly in the United States and offered some possible explanations for this erosion and concluded that the work needed to consider these possibilities more fully.
Abstract: After briefly explaining why social capital (civil society) is important to democracy, Putnam devotes the bulk of this chapter to demonstrating social capital’s decline in the United States across the last quarter century. (See Putnam 1995 for a similar but more detailed argument.) While he acknowledges that the significance of a few countertrends is difficult to assess without further study, Putnam concludes that crucial factors such as social trust are eroding rapidly in the United States. He offers some possible explanations for this erosion and concludes by outlining the work needed to consider these possibilities more fully.
11,187 citations
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10,462 citations