The role of intellectual and social capital in funding businesses: a cross-country analysis

Abstract

PurposeThe study aims to examine the impact of intellectual and social capital in funding businesses.Design/methodology/approachThe study made use of fixed-effects panel data models with a sample of 142 countries from the five continents during the period 1998–2018.FindingsIt was found that human capital (HC), relational capital, structural capital and social capital play a role in investors’ decisions to fund a business. The study revealed that investors’ funding decisions in low human development index countries are based mainly on education, while those in high human development index countries are based mainly on the creativity component of HC and on relational, structural and social capital.Research limitations/implications The study needs to be replicated using firm-level data within each country. Moreover, the search for new proxies for intellectual and social capital (although the list of variables is exhaustive) both at the country and firm level, constitutes an interesting avenue for future research.Practical implicationsCountries should pay attention to intellectual and social capital to encourage business activity. In particular, low human development countries should strengthen HC, such as the school enrollment rate, with early entrepreneurial training and increase research and development investments, while high human development countries should continue to foster strategic alliances, protect intellectual property and maintain or increase the level of trust in the country.Originality/valueThe study contributes to literature by being the first to explore such a variety of intellectual and social capital variables from a country-level perspective.

Modal Sosial: Apakah Penting Dalam Penyelesaian Pinjaman di Lembaga Keuangan Mikro Syariah?

“…Makalah ini menggunakan konsep modal sosial yang telah banyak dieksplorasi dalam literatur sosiologi dan ekonomi (Hj Talip & Wasiuzzaman, 2023;Lawhaishy & Othman, 2023;Pandey & Jessica, 2019). Meskipun terdapat banyak definisi yang tidak jelas dan tidak konsisten (Mahato & Jha, 2024;Mongrut et al, 2024), definisi yang umum adalah bahwa modal sosial merujuk pada fitur-fitur organisasi sosial seperti jaringan, norma-norma, dan kepercayaan sosial yang memfasilitasi koordinasi dan kerja sama untuk mencapai keuntungan bersama (Lawhaishy & Othman, 2023;Mongrut et al, 2024). Namun demikian, para ekonom memandang modal sosial sebagai sumber keuntungan ekonomi yang didorong oleh ikatan-ikatan sosial yang benar-benar dimobilisasi untuk mencapai hasil tertentu (Kasbar et al, 2023;Lawhaishy & Othman, 2023), dalam konteks makalah ini, hasil pasar kredit mikro.…”