The Social Capital and Firm Performance: Evident from Indonesia Small businesses

This study aims to contribute to the social capital theory through examining the direct impact of social capital and moderating impact of marketing capability on firm performance.  This study proposes a structural equation model and tests the hypothesis through generalized structured component analysis (Gesca) with random survey on small medium enterprises in Indonesia. The approach allows to analysis the ellement of social capital: network, trust and cognitive as well as the ellements of marketing capability: pricing capability, product development, and marketing communication. The result indicates the social capital and marketing capability provide complementary effect to the firm performance. Keywords: social capital; firm performance; marketing capability JEL Classifications: D21, L30, M3

The social capital and firm performance: Evident from Indonesia small businesses

This study aims to contribute to the social capital (SC) theory through examining the direct impact of SC and moderating impact of marketing capability (MC) on firm performance (FP). This study proposes a structural equation model and tests the hypothesis through generalized structured component analysis with random survey on small medium enterprises in Indonesia. The approach allows to analysis the element of SC: Network, trust and cognitive as well as the elements of MC: Pricing capability, product development, and marketing communication. The result indicates the SC and MC provide complementary effect to the FP

Moderating role of leadership behaviour among entrepreneurial orientation, social capital, global mindset and firm international performance

Small and Medium Enterprises (SMEs) play an important role to strengthen the total exports of developing countries. These exports depend on firm international performance. This study empirically examined the major factors of firm international performance which attained researcher’s attention in previous studies. Among those factors include entrepreneurial orientation, social capital, and global mindset. This study also investigated the moderating role of leadership behavior on the relationship between entrepreneurial orientation, social capital, global mindset and firm international performance in the sports industry of Pakistan. A structured questionnaire representing dimensions related to entrepreneurial orientation, social capital, global mind set, leadership behavior and firm international performance was designed. Data were collected using a cross-sectional study, whereby 550 questionnaires were randomly distributed and 320 were successfully collected through personal administered method. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test six hypotheses. This study found that entrepreneurial orientation, social capital, and global mindset are high impacting independent variables in a relationship with firm international performance. Furthermore, leadership behavior has a strong moderating effect on the paths between entrepreneurial orientation, social capital, global mindset and firm international performance. The study also contributed to the theory as it extended Resource Based View (RBV) and Contingency Theory perspective. Policy-makers should encourage firms to improve their entrepreneurial orientation, social capital and global mindset which may increase exports of Pakistan sports industry to all over the world. Lastly, the scope of the study is limited to moderating effect of leadership behavior on entrepreneurial orientation, social capital, and global mindset in sports industry only. Future research are suggested to select the data from other exporting industries by applying longitudinal study and undertake other moderators such as competitive structure, absorptive capacity, or environmental dynamism

Entrepreneurial Orientation and Social Capital in Pricing Strategy: a Case of Small Enterprises in East Java

Penelitian ini mengkaji dampak orientasi kewirausahaan dan modal insani terhadap strategi penetapan harga perusahaan-perusahaan kecil di Jawa Timur. Metoda penelitian ini merupakan campuran antara analisis kuantitatif dan analisis kualitatif yang dipergunaan untuk menganalisis 168 perusahaan kecil. Temuan utama dari analisis kualitatif adalah perusahaan kecil cenderung menetapkan harga rendah untuk produk-produk mereka, diskon diberikan kepada pelanggan yang loyal, sistem penetapan harga transfer berdasarkan biaya produksi, adanya hubungan yang dekat antara pekerja dan pemilik dan antar pekerja, serta keagresifan bukanlah merupakan ciri perusahaan kecil. Temuan utama dari analisis kuantitatif ada tiga, yaitu (1) keagresifan dalam inovasi produk dan otonomi dalam pengambilan risiko merupakan dua ukuran orientasi kewirausahaan yang memengaruhi kemampuan perusahaan kecil di Jawa Timur dalam menetapkan harga produk baru; (2) baik agresifitas dalam inovasi dan otonomi dalam pengambilan risiko menentukan program pemasaran (salah satu ukuran penetapan harga) di perusahaanperusahaan kecil; (3) berbagi ide tentang tujuan merupakan faktor kunci dalam modal insani yang sangat memengaruhi komunikasi yang baik dengan pelanggan

Enterpreneurship Orientation and Social Capital in Pricing Strategy: A Case of Small Enterprises in East Java

This study examines the impact of entrepreneurship orientation and social capital to pricing strategy in small firms in East Java. A mix qualitative and quantitative research method is applied to 168 small firms. The key findings from the qualitative method is that small firms tend to set a low price for their products, price discount is provided for loyal customers, cost-based transfer pricing is adopted, close relationship between owners and workers and among workers are maintained, and aggressiveness is not a nature of entrepreneurship orientation in the small firms. The findings of quantitative method complement the qualitative method by showing three key results: (1) aggressiveness in innovation and autonomy in risk taker are two important entrepreneurship orientation factors influence the capability of the observed small firms in setting price for new products; (2) both aggressiveness in innovation and autonomy in risk taker determine the marketing program (one of the pricing strategy) in the small firms; (3) sharing goals is a key factor in social capital that affecting the good communication with customers

Braiding: the Interaction of Formal and Informal Contracting in Theory, Practice, and Doctrine

This Article studies the relationship between formal and informal con tract enforcement The theoretical literature treats the two strategies as separate phenomena. By contrast, a rich experimental literature considers whether the introduction of formal contracting and state enforcement "crowds out" the operation of informal contracting. Both literatures focus too narrowly on how formal contracts create incentives for parties to perform substantive actions, while assuming that informal enforcement depends on preexisting levels of trust. As a result, current scholarship misses the relationship between formal and informal contract mechanisms that characterizes contemporary contracting in practice. Parties respond to ?sing uncertainty by writing contracts that intertwine formal and informal mechanisms?what we call "braiding"?in a way that allows each to assess the disposition and capacity of the other to respond cooperatively and effectively to unforeseen circumstances. These parties agree on formal contracts for exchanging information about the progress and prospects of their joint activities, and it is this information sharing regime that "braids" the formal and informal elements of the contract and endogenizes trust. We argue that the low-powered enforcement associated with the formal governance structure in these braided contracts complements rather than crowds out the informal mechanisms that rely on increasing levels of trust. We examine the braiding phenomenon in a variety of contexts characterized by increasing uncertainty. In each instance, courts appear to have harnessed the braiding phenomenon by using low-powered sanctions to protect formal contractual "preliminaries." This technique allows potential collaborators to explore and develop their relations, but it does not impose mutually enforceable obligations to pursue a particular project. Despite the wisdom of temperate enforcement of braided contracts, however, courts that emphasize the contemporary duty to negotiate in good faith are often tempted to expand the legal sanction. We conclude by explaining how courts can best support the braiding strategies that are critical to the success of an integrated regime of formal and informal contracting

Capital Intelectual e a Capacidade Absortiva na Inovação - Construção de um Portfólio Bibliográfico e Análise Bibliométrica

Este trabalho tem como objetivo identificar os mais relevantes artigos científicos e seus parâmetros, com a temática relacionada entre: Capital Intelectual, Capacidade Absortiva e Inovação. Para realizar a pesquisa, utilizou-se um processo construtivista, chamado Knowledge Development Process – Constructivist (ProKnow-C). Por meio deste, foram selecionados 20 artigos que compuseram o Portfólio Bibliográfico (PB) desta pesquisa. Assim, o estudo foi capaz de identificar os seguintes itens principais: a) o grau de relevância dos artigos do Portfólio Bibliográfico (PB); b) os autores mais relevantes no PB e nas Referências Bibliográficas (RB); c) o perfil dos principais pesquisadores; d) a frequência dos periódicos no PB; e) o fator de impacto dos periódicos (SJR); e g) as palavras-chave mais frequentes

How a network-based start-up ecosystem supports new venture performance: Management perspectives and future research.

The literature on how a start-up ecosystem has an impact on a start-up’s performance has significantly grown and contributed to the management field. Nevertheless, these theoretical developments have been scattered, inconsistent, lacking in theoretical depth. Therefore, in this review, we use three perspectives to organise the knowledge field, refine concepts and generate a prospectus for future studies. The perspectives reviewed are the Resource-Based View, Open Innovation and Social Capital Theory. The results have generally shown that the network-based start-up ecosystem contributes resources, capabilities, learning, collaboration, relationship, knowledge shared and social capital to new ventures. The influence of these benefits for new venture performance is uncertain. Conceptual development in start-up ecosystem research will gain value from management perspectives that address these benefits. We propose a plan for future studies on network-based start-ups that is oriented towards a more robust framework with which to consider the role and influence of a start-up ecosystem that goes beyond general descriptions of the positive effect of start-ups network-ecosystem on performance

The Impact of Social Capital on Market Power: Analysis of Competitive Advantage in Small Medium Enterprises

The impact of social capital on market power has been an interesting topic since the early 2000. The mainstream literature evaluates mainly on the impact of physical capital on the market power, whereas the new developed literature focuses also on the social capital in analyzing market power. In this present study, a comprehensive analysis on market power is based on two important determinants, entrepreneurial orientation and social capital. Entrepreneurship orientation is expected to contribute positively and significantly on market power. The same positive significant effect is also expected from social capital to market power. Using the sample of small and medium enterprises in East Java, this present study analyzes comprehensively the impact of social capital on market power. The analysis is performed on both quantitative data and qualitative data. The quantitative method includes reliability test, validity test, explanatory factor analysis of Kaiser-Meyer Olkin’s and Bartlett’s, and regression analysis. The qualitative method is based on an interpretative approach on interview, storytelling, narrative, and coding. The quantitative analysis finds out four important findings. Firstly, the data used in the analysis is reliable and uni-dimension, with 13 items of questions represent market power, 28 items of questions represent social capital, and 24 items of questions represent entrepreneurial orientation. Secondly, validity test confirms that the constructed dataset is valid to be used to perform factor analysis. Thirdly, the factor analysis shows that each latent variable has at least two items that forming specific patterns within the variable. Fourthly, the regression analysis indicates that sharing goal, relationship with suppliers, and relationship with distributors are three key factors of social capital that significant effects on market power The qualitative analysis finds five important points. Firstly, price reduction plays pivotal role in retail products with cross elasticity. Secondly, there is interdependence among firms on price strategy. Thirdly, there is a high dependence of observed firms on their suppliers. Fourthly, a specific social capital that related to staff relationship is an important factor in the observed small and medium enterprises. Fifthly, aggressiveness is not a nature of entrepreneurial orientation for the observed firms, which support the argument in hawk-dove game theory

Structural social capital and innovation. Is knowledge transfer the missing link?

Purpose: This paper aims to address the gap that, to date, no systematic review has been carried out on the role that structural social capital (SC) plays for knowledge transfer and innovation at the interpersonal, inter-unit and inter-firm levels. Individuals and organisations are becoming increasingly involved in collaboration networks to share knowledge and generate innovation. SC theory has been adopted in several areas of study to explain how individuals, groups and organisations manage relationships to generate innovation. Design/methodology/approach: This review covers studies of SC in organisational behaviour, strategy and management over a period of 20 years. Findings: The literature review shows that knowledge types and knowledge transfer processes are the missing links in the relationship between structural SC and innovation. Moreover, the paper demonstrates that seemingly opposite configurations of SC are complementary to each other (structural holes vs dense networks; strong vs weak ties) and that contextual factors should be considered when discussing the effects of SC on knowledge transfer and innovation. In addition, it is the balance of different configurations of SC which enables an individual or a company to explore, access, assimilate and combine different knowledge types, which will lead to improved innovation outcomes. Originality/value: This review facilitates understanding of the role of SC for knowledge transfer processes and the mediating role of knowledge transfer processes and knowledge types in the relationship between structural SC and innovation