Do Livelihood Strategies Influence Post-Epidemic Business Performance? Investigation of Social Capital and Environmental Perception

Abstract

Livelihood strategies are a combination of activities and actions that individuals undertake to accomplish their desired goals. The current study aimed to examine the impacts of livelihood strategies on business performance. This study explored social capital as a mediator between livelihood strategies and business performance. This study further investigated how environmental perception strengthens livelihood strategies and business performance. For data collection, a quantitative research method and a random sampling technique were used. Data were collected through 550 questionnaires from small–medium enterprises (SMEs) in China. To test the study hypotheses, structural equation modeling (SEM) was performed. The findings confirm the notion that livelihood strategies are positively associated with business performance. The results also corroborate the notion that social capital mediates the association between livelihood strategies and business performance. The outcome validates the notion that livelihood strategies and business performance are further articulated when environmental perception is higher. Environmental perception moderated the impacts of livelihood strategies on business performance via social capital. The current research provides a better understanding of how livelihood strategies facilitate amplified business performance via social capital and the valuable role of environmental perception in research models.

Innovation Capability and Sustainable Performance Through Knowledge Management in Small and Medium-sized Enterprises

“…SOC consists of a network of relationships between groups of people with similar goals who cooperate together to gain those goals effectively. Similarly, SOC consists of a network of relationships between different groups of people who cooperate together in groups to gain joint goals effectively (Wang, 2023). On the other hand, SOC are social links between managers of one organization or enterprise and managers in other organizations or enterprises, including organizations are the relevant external cooperation partners, financial or non-financial institutions, and Government organizations or State agencies (Zhang et al, 2019a).…”

“…SOC is an important tool for SMEs because it can help SMEs improve their INC (Amarathunga & Wijethunga, 2022). SOC provides potential resources that can be accessed and acquired from the networks of ties formed and developed between different groups of people in society for common goals (Wang, 2023). SOC is formed by managers through personal connections, it builds relationships and networks based on a policy of giving and receiving (Sheng et al, 2011).…”