Human Capital and Social Capital in Entrepreneurs and Managers of Small and Medium Enterprises

Abstract

This paper uses factor analysis methods to identify structures associated with human and social capital in a small country with an open-economy, based on a survey of small-and medium-sized companies across different sectors. The purpose of this research is to investigate the influences of entrepreneurial and managerial behaviours on the relationship between human capital and social capital. The results indicate that the principal factor is highly correlated to the variables of experience, professional proficiency and cognitive ability, which are predominant characteristics of the entrepreneur, as well as status variables such as interlinking, family support, personal relations and social relations. The study also suggests that links between human capital and social capital are more salient in manufacturing and construction companies than in the wholesale trade, retail trade and services sectors.

Explaining SME engagement in local sourcing: The roles of location-specific resources and patriotism

“…In particular, individual cognitive schemas inform firm behavior by influencing the information that key decision makers notice, how it is interpreted and how these interpretations lead to actual choices (Daft and Weick, 1984;Kaplan, 2008;Ocasio, 1997). In the context of this study, we focus on two personal resources that drive the cognitive schema of key decision makers in relation to local sourcing, namely, their location-specific human and social capital (Felício et al, 2012;Jansen et al, 2013).…”

Implementation of Bank Indonesia CSR Program on Empowerment the Micro, Small, Medium Enterprises (MSMEs) (Study at the Artisans of Tenun Ikat Bandar Kidul, Kediri City, East Java)

“…Lord and Hutchison (1993) defines empowerment is an interactive process through which people experience personal and social change, enabling them to take action to achieve influence over the organizations which affect their lives and the communities in which they live. Felicio et al (2012) human capital refers to a set of characteristics that provide individuals with more skills, namely, cognition, experience and knowledge, which make them more productive, provide a higher potential for effciency and enhance the development of activities. In the business perspective, it have highlighted that individuals with higher levels of human capital have a higher propensity for entrepreneurial activity as a result of greater levels of self-confidence and decreased concerns over risk.…”

“…Internal challenges relate to employee retention, motivation, and development Lord and Hutchison (1993) defines empowerment is an interactive process through which people experience personal and social change, enabling them to take action to achieve influence over the organizations which affect their lives and the communities in which they live. Felicio et al (2012) human capital refers to a set of characteristics that provide individuals with more skills, namely, cognition, experience and knowledge, which make them more productive, provide a higher potential for effciency and enhance the development of activities.…”

Organizational intellectual capital and the role of the nurse manager: A proposed conceptual model

“…The managerial facilitator may be defined as a key agent of the organization who is responsible for facilitating organizational outcomes through the work of other individuals. Across the articles reviewed, managerial behavior was a commonly identified antecedent of human and social capital (Felício, Couto, & Caiado, 2012;Felício et al, 2014;Hofmeyer, 2013;Leitch et al, 2013;Luthans & Youssef, 2004). Managerial behavior is also influenced by organizational capital which provides both the context for action and the rules of engagement (Ellinger et al, 2011;Felício et al, 2012;Hofmeyer, 2013).…”