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Impact of social capital on small firm performance in West B Saha, Mausumi.

By: Saha, Mausumi

Contributor(s): Banerjee, Sharmistha

Material type: Article

ArticlePublisher: The Journals of Entrepreneurship 2015Description: 91 - 114Online resources: Click here to access online In: The Journal of EntrepreneurshipSummary: Formal and informal networks empower small firms to generate social capital by forging network ties, building on trust and sharing a vision among stakeholders. It enables them to obtain necessary resources, support, information and knowledge, which may be otherwise inaccessible to them. This study analyses the impact of social capital on firm performance through the constructs of network ties, trust and shared vision while drawing a comparison between firms associated with formal and informal networking. An empirical study was conducted via a structured questionnaire on a sample of 100 small firms in West Bengal with 50 firms having membership in industry/trade associations as the experimental group and another 50 firms having only informal connections as the control group. Findings of the multiple regression analysis reveal that the impact of social capital on firm performance is significantly greater in firms engaged in formal and informal networking in contrast to firms embedded only in the informal network.

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Item type	Current location	Call number	Vol info	Status	Date due	Barcode
Articles	Ahmedabad (HO)	(Browse shelf)	Vol. 24, Issue. 2	Available		020412

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Previous	Four types of leadership and orchestra quality	Nonprofit board balance and perceived performance	Aquiring start-up funding for new arts organisations	Impact of social capital on small firm performance in West B	Entrepreneurial abilities and barriers to microenterprise gr	Theorising entrepreneurship in the informal sector in urban	Effective growth paths for SMEs	Next

Formal and informal networks empower small firms to generate social capital by forging network ties, building on trust and sharing a vision among stakeholders. It enables them to obtain necessary resources, support, information and knowledge, which may be otherwise inaccessible to them. This study analyses the impact of social capital on firm performance through the constructs of network ties, trust and shared vision while drawing a comparison between firms associated with formal and informal networking. An empirical study was conducted via a structured questionnaire on a sample of 100 small firms in West Bengal with 50 firms having membership in industry/trade associations as the experimental group and another 50 firms having only informal connections as the control group. Findings of the multiple regression analysis reveal that the impact of social capital on firm performance is significantly greater in firms engaged in formal and informal networking in contrast to firms embedded only in the informal network.

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