Social capital for knowledge management : the case of small and medium-sized enterprises in the Asia-Pacific Region

This article proposes a conceptual framework that explains that the social capital of a community shapes the innovation performance of small and medium-sized enterprises (SMEs) through knowledge management within the firm. The study\u27s significance stems from the unprecedented effort in explaining how community social capital matters in the innovation performance of SMEs, a departure from previous studies that have typically examined market-related or hierarchical social capital in the form of formal networks and directly linked them to a firm\u27s innovation performance without due regard for knowledge management within the firm as an antecedent of organisational innovation performance. The aim is to stimulate further thinking and empirical research on the subject of social capital of a community in the SME and/or entrepreneurial context.<br /

Institutions, Strategic Posture and Performance of Micro, Small and Medum Enterprises

The thesis of this study is that perceptions of formal and informal institutions permeating the business environment in a city in an emerging economy have significant influence on the strategic posture of micro, small and medium enterprises (MSMEs); and that strategic posture is viewed to have significant influence on the firms' overall organisational performance. The study emphasises the mediating role of strategic posture, being the conduit through which perceptions of sub-national institutions exert their influence on organisational performance. Institutional theory, which considers institutions as 'the rules of the game' that govern human interaction, serves as the study's theoretical foundation. An extensive review of the literature was undertaken in the areas of institutional theory, strategic management, organisational performance, investment or business climates, MSME/entrepreneurial development, decentralisation and local economic development at the city level. The study adopts an empirical-deductive research design through which a survey generated a total sample of 900 MSMEs located in two cities in the south-eastern region of the Philippines. Hierarchical multiple regression modelling, using ordinary least squares method with confirmatory robust technique, was applied to test the hypotheses. Results suggest that all of the five formal institutions and two of the five informal institutions had positive relationships with an entrepreneurial strategic posture, which in turn, was shown to be positively associated with higher levels of product/service, strategic and financial performance. Moreover, strategic posture was shown to partially mediate the relationships between three formal institutions and two facets of organisational performance. However, when the five formal institutions and five informal institutions were aggregated into two sets of indices, mediation analysis revealed that the index of formal institutions - product/service performance relationship was partially mediated by strategic posture. The index of formal institutions - strategic performance relationship was shown to be fully mediated by strategic posture. On the other hand, the index of informal institutions - product/service performance relationship was shown to be fully mediated by strategic posture. Overall, the empirical results offer acceptable level of support to the main thesis of the study

Explaining the environmentally sustainable consumer behavior: a social capital perspective

Purpose - The purpose of this study is to examine the effects of social capital within a community on the adoption of consumer eco-behaviour or environmentally sustainable behaviour of consumers. The authors draw on the behavioural perspective model (BPM) of consumer behaviour and social capital theory in arguing that social capital shapes a consumer\u27s knowledge of environmental issues and pro-environmental attitudes, which in turn influence a consumer\u27s perceived capability to engage in eco-behaviour. Design/methodology/approach - This study uses partial least squares approach to structural equation modelling of survey data involving 1,044 consumers in the Philippines. It involves testing of a measurement model to examine the validity and reliability of the constructs used in the study. This is followed by testing of the structural models to test the hypothesised relationships of the constructs. Findings - The results suggest the substantive influence of social capital on environmental knowledge, pro-environmental attitudes and eco-capability. Both knowledge and attitudes have positive effects on eco-capability, which in turn positively shapes eco-behaviour. Research limitations/implications - Future studies can examine how social capital as a multi-dimensional construct impacts context-specific consumer behaviour. Practical implications - Social and environmental marketing may focus on social network activation to encourage eco-behaviours of consumers. Social implications - Findings highlight the role of social capital within one\u27s community as a resource channel to encourage environmentally responsible consumer behaviour. Originality/value - The study extends the BPM by offering a social capital view as a more nuanced explanation of consumer eco-behaviour

Social capital for knowledge management: the case of SMEs in the Asia Pacific region

This article presents a theoretical argument that the social capital of a community shapes the innovation performance of small and medium enterprises (SMEs) through knowledge management within the firm. Whilst social capital has gained popular currency in the international research and academic community, the current study attempts to deepen current understanding on the role of social capital in economic development, particularly at the firm level phenomenon involving SMEs. The study’s significance stems from the unprecedented effort of explaining how community social capital matters in the innovation performance of SMEs, a departure from previous studies which typically examined market-related or hierarchical social capital in the form of formal networks and directly linking them to a firm’s innovation performance without due regard to knowledge management within the firm as an antecedent of organizational innovation performance. The aim is to stimulate further thinking and empirical research on the subject of social capital of a community in the SME and/or entrepreneurial context

Entrepreneurial knowledge and its effects on entrepreneurial intentions: development of a conceptual framework

This study advances the thesis that knowledge gained from a formal entrepreneurship education program will have positive effects on an individual's overall entrepreneurial intentions through the mediating influences of attitudes and social norms favouring entrepreneurial behaviour. In this proposed conceptual framework, it is argued that the knowledge gained by students attending an entrepreneurship course will have a positive impact on the students' intentions of starting a business. Guided by the theory of planned behaviour, this study proposes a research design which involves tracking of the changes in the students' perceptions of the desirability of, self-efficacy in engaging in, and social norms supportive of, entrepreneurship and their consequent influences on the student's entrepreneurial intentions prior to the start and upon completion of an entrepreneurship course

An institutional analysis of strategic posture

[Abstract]: This paper investigates the role of formal and informal institutions in shaping the strategic posture of mico, small, and medium enterprises (MSMEs). A survey suggests that the two institutional categories help to explain the risk-taking, proactive and innovative stances of firms. The econometric evidence also indicates a partial mediating role for strategic posture, most of which are also discussed for policy implications

Institutions, Strategic Posture and Performance of Micro, Small and Medum Enterprises

The thesis of this study is that perceptions of formal and informal institutions permeating the business environment in a city in an emerging economy have significant influence on the strategic posture of micro, small and medium enterprises (MSMEs); and that strategic posture is viewed to have significant influence on the firms' overall organisational performance. The study emphasises the mediating role of strategic posture, being the conduit through which perceptions of sub-national institutions exert their influence on organisational performance. Institutional theory, which considers institutions as 'the rules of the game' that govern human interaction, serves as the study's theoretical foundation. An extensive review of the literature was undertaken in the areas of institutional theory, strategic management, organisational performance, investment or business climates, MSME/entrepreneurial development, decentralisation and local economic development at the city level. The study adopts an empirical-deductive research design through which a survey generated a total sample of 900 MSMEs located in two cities in the south-eastern region of the Philippines. Hierarchical multiple regression modelling, using ordinary least squares method with confirmatory robust technique, was applied to test the hypotheses. Results suggest that all of the five formal institutions and two of the five informal institutions had positive relationships with an entrepreneurial strategic posture, which in turn, was shown to be positively associated with higher levels of product/service, strategic and financial performance. Moreover, strategic posture was shown to partially mediate the relationships between three formal institutions and two facets of organisational performance. However, when the five formal institutions and five informal institutions were aggregated into two sets of indices, mediation analysis revealed that the index of formal institutions - product/service performance relationship was partially mediated by strategic posture. The index of formal institutions - strategic performance relationship was shown to be fully mediated by strategic posture. On the other hand, the index of informal institutions - product/service performance relationship was shown to be fully mediated by strategic posture. Overall, the empirical results offer acceptable level of support to the main thesis of the study

Institutions, Strategic Posture and Performance of Micro, Small and Medum Enterprises

The thesis of this study is that perceptions of formal and informal institutions permeating the business environment in a city in an emerging economy have significant influence on the strategic posture of micro, small and medium enterprises (MSMEs); and that strategic posture is viewed to have significant influence on the firms' overall organisational performance. The study emphasises the mediating role of strategic posture, being the conduit through which perceptions of sub-national institutions exert their influence on organisational performance. Institutional theory, which considers institutions as 'the rules of the game' that govern human interaction, serves as the study's theoretical foundation. An extensive review of the literature was undertaken in the areas of institutional theory, strategic management, organisational performance, investment or business climates, MSME/entrepreneurial development, decentralisation and local economic development at the city level. The study adopts an empirical-deductive research design through which a survey generated a total sample of 900 MSMEs located in two cities in the south-eastern region of the Philippines. Hierarchical multiple regression modelling, using ordinary least squares method with confirmatory robust technique, was applied to test the hypotheses. Results suggest that all of the five formal institutions and two of the five informal institutions had positive relationships with an entrepreneurial strategic posture, which in turn, was shown to be positively associated with higher levels of product/service, strategic and financial performance. Moreover, strategic posture was shown to partially mediate the relationships between three formal institutions and two facets of organisational performance. However, when the five formal institutions and five informal institutions were aggregated into two sets of indices, mediation analysis revealed that the index of formal institutions - product/service performance relationship was partially mediated by strategic posture. The index of formal institutions - strategic performance relationship was shown to be fully mediated by strategic posture. On the other hand, the index of informal institutions - product/service performance relationship was shown to be fully mediated by strategic posture. Overall, the empirical results offer acceptable level of support to the main thesis of the study.</p

Institutional analysis of strategic choice of micro, small and medium enterprises: development of a conceptual framework

This paper presents a conceptual framework showing formal and informal institutions and their relationship with the strategic choice of micro, small, and medium enterprises (MSMEs) in a developing country setting. It emphasises how institutions at sub-national level (such as a region or city) influence the strategic orientations of MSMEs as many developing countries in Asia are undergoing decentral-isation whereby sub-national government authorities are given more political, economic, fiscal, and administrative powers. Furthermore, it sheds more insights on the environ-mental (institutional) determinism-organisational (strategic) choice nexus. It offers propositions, questions as well as issues worth pursuing in empirical investigations in the future