Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability

Tian, Hongyun; Kankam, William Adomako; Appiah-Twum, Florence; Akolgo, Isaac Gumah

doi:10.32479/irmm.8108

Cited by 19 publications

(24 citation statements)

References 85 publications

(151 reference statements)

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“…Researchers opined that there is a significant issue related to the ability of small scale business to access funds and grants and this affects their prosperity and development. Hongyun, Kankam, Appiah-Twum, and Akolgo [16] recognize inadequate financing and improper management as the accompanying constraints related with small scale businesses activities in Nigeria. Having seen the increased pace in which Small scale businesses fail and its significance commitment to the nation, it is prominent to investigate how small scale businesses can conquer their obstacles and furthermore acquire knowledge from effectively operating ones.…”

Section: Review Of Extant Literaturementioning

confidence: 99%

Government Grants and Assistance on Employee Performance of Small Scale Businesses in Nigeria

Kafayat¹,

Tunji²,

Adeleye³

et al. 2022

IJAFRM

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The task of small scale businesses in the development of emerging nations has been perceived to be essential in conquering financial difficulties described by high rate of unemployment, high destitution rates and pay disparities, particularly in developing nations. The disruptions caused due to changed circumstances have led to the loss of revenue for businesses and exposed them to a vulnerable environment. Government grants and assistance as a tool for development and growth of small scale businesses are phenomenal. The study aimed at ascertaining the effect of government grant on employee performance of small scale businesses. Taking into account the challenges facing small scale businesses and provision of government grants in Nigeria, other specific objectives were aimed at Evaluating the effect of government training on employee performance of small scale businesses and secondly, To find out how lack of access to finance influences employee performance of Small scale businesses. Theoretical framework of the study was based on motivation theory. A cross sectional, explanatory and descriptive research design was employed and questionnaire was administered to 133 sampled respondents. Both descriptive and inferential statistics were used to analyze the data obtained. The findings of the study shows that government training has a positive effect on employee performance while a low relationship exist between lack of access to finance and employee commitment. The low value of multiple correlation of determination indicates that there are other important factors that affect the employee commitment other than lack of access to finance. The study concludes that government grant has a positive effect on employee performance and thus recommends that Government grants and assistance agencies should aim at helping Small scale businesses with different marketing strategies to guarantee that they comprehend the market.

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Section: Review Of Extant Literaturementioning

confidence: 99%

Government Grants and Assistance on Employee Performance of Small Scale Businesses in Nigeria

Kafayat¹,

Tunji²,

Adeleye³

et al. 2022

IJAFRM

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“…With good SC networks SMEs will be good at identifying business opportunities a characteristic of an EO (Agyapong et al 2017 ; Ahmadian and Abdolmaleki 2018 ). However, several studies treated SC and EO separately without a close examination of their interrelationships (Stam and Elfring 2008 ; Alguezaui and Filieri 2010 ; Hongyun et al 2019 ; Rodrigo-Alarcón et al 2018 ). This study expects that SC will play a significant and positive mediating role on the relationship between EO and SMEs performance.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Globally, about 99% of all businesses are SMEs contributing about 60 to 70% of informal jobs in various sectors of the economy especially in the OECD countries (OECD 2017 ; Owusu 2019 ; Hongyun et al 2019 ; Nasip et al 2017 ) and based on the ILO (ILO 2017 ) report, SMEs have also increase the employment rate since 2003 to 2016 across 132 countries with full-time workers in SMEs which increased from 79 million to 156 million. Yet, there are predictions that there will be a minimum of 5.3 million to a maximum of 24.7 million reduction of employment as a result of Coronavirus (COVID-19) pandemic (OECD 2020 ).…”

Section: Introductionmentioning

confidence: 99%

“…SC helps to explain the EO of SMEs and is also vital for entrepreneurial activities as, entrepreneurship is a socio-economic activity that relies on social context and entrepreneurs are also products of their social environs and the existence or lack of social networks affect SMEs performance in acquiring resources without which SMEs cannot perform well (Anderson and Miller 2003 ; Kanini and Muathe 2019 ). SC also helps to explain the EO and SMEs performance relationship to outperform their competitors (Acheampong et al 2018 ; Barr 2000 ; Boohene 2018; Ofori and Sackey 2010 ; Chirico and Salvato 2008 ), though several studies have treated SC and EO separately which gives room for further studies using SC as a mediating and or moderating variable with other variables in other sectors of the economy and countries (Quinetta and Williamson 2012 ; Uzzi et al 2003 ; Hongyun et al 2019 ).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Influence of Entrepreneurial Orientation on SMEs Performance in Ghana: The Role of Social Capital and Government Support Policies

Zaato

Ismail

Uthamaputhran

et al. 2021

The Importance of New Technologies and Entrepreneurship in Business Development: In the Context of Economic Diversity in Develo

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The primary aim of this current theoretical paper is to propose a research framework on the influence of Entrepreneurial Orientation (EO) on SMEs performance in Ghana with the role of Social Capital (SC) and Government Support Policies (GSPs). The study re-viewed existing literature and theories pertaining EO, SC and GSPs by using the five EO dimensions of Lumpkin and Dess ( 1996 ) to further ascertain the mediating and moderating effect of SC and GSPs in relation to SMEs performance and in Ghana and used measures of SC, and GSPs. A questionnaire will be administered to 380 registered SME-owners of Ghana based on Ghana Statistical Survey (2016) using simple random sampling technique, and the data will be analysed by the Partial Least Square-Structural Equation Modelling (PLS-SEM) approach to determine the emerged hypothesis. This study would be hinged on the resource-based view and the social capital theories stressing the need for SMEs to focus more on their unique internal and external resources that existed with-in their social capital network based on their reciprocal relations. This novel study would further provide new insight to practitioners to understand and appreciate the role of SC in explaining the EO of SMEs and how GSPs can enhance the EO and SMEs performance relationship.

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“…The relationship among social capital, innovation, and performance of micro and small businesses, and specifically, the mediating role of innovation in the relationship between social capital and performance was also examined (Agyapong, et al, 2017). The relationship between social capital and firm growth with access to finance as a moderating role has also been examined (Boohene, 2018).The effect of social capital on firm performance was also studied by examining the moderating role of entrepreneurial orientation in the relationship between social capital and firm performance, as well as the mediating role of dynamic capabilities in the relationship between social capital and firm performance (Hongyun et al, 2019). As it is indicative from these studies, no attempt has been made to understand the dynamics between the different levels of social capital on employee gender and growth in the Ghanaian business environment.…”

Section: Introductionmentioning

confidence: 99%

Understanding How Gender and Social Capital Levels Associate with Employee Growth in a Developing Country Work Environment

Sanda¹

2021

JHRMLS

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This paper explored and identified factors predictive of the three levels of social capital that employees in a developing country work environment bring on board to influence their growth and, to determine whether the character of each level is associated with the employees" gender. Using the quantitative approach, data was collected from workers in the three industrial sectors, and firstly analysed descriptively using the Principal Component analysis as a means of data reduction and establishment of data reliability, followed by inferential analysis using the SEM approach to determine the factor predictiveness" of the study constructs and test the relationships between them. The results showed that employees" personal, intraorganizational and external social capitals, as well as their growths in organizations are predictable by prevailing organizational and social factors, but not by their genders. Additionally, it was found that though an influencing relationship exist among the three levels of social capital, only the employees" intraorganizational social capital has a direct influence on their growth. It is concluded that the effects of employees" personal social capital and external social capital on their growth is mediated by their intraorganizational social capital.

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Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability

Cited by 19 publications

References 85 publications

Government Grants and Assistance on Employee Performance of Small Scale Businesses in Nigeria

Government Grants and Assistance on Employee Performance of Small Scale Businesses in Nigeria

The Influence of Entrepreneurial Orientation on SMEs Performance in Ghana: The Role of Social Capital and Government Support Policies

Understanding How Gender and Social Capital Levels Associate with Employee Growth in a Developing Country Work Environment

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