Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Social capital and dynamic capabilities in international performance of SMEs

Social capital and dynamic capabilities in international performance of SMEs Purpose – The major goals of this paper are twofold: first, it aims to explore the link between social capital (structural, relational and cognitive) and the exploitative and explorative capabilities; second, to examine the influence of exploitative and explorative capabilities on international performance. Design/methodology/approach – This paper is conceptual in nature and relies on a conceptual model that builds on and synthesizes the theoretical foundations of social capital (structural, relational and cognitive), dynamic capabilities and international performance. Findings – A useful framework for further research in the social network field and dynamic capabilities is presented. In order to build new dynamic capabilities to cope with turbulent and unpredictable markets, small to medium‐sized enterprises (SMEs) need to leverage their network relationships that provide access to novel sources of information. These dynamic capabilities may in turn positively influence international performance. Practical implications – The paper may assist other researchers with a different template of possible relationships that can better explain international performance. Originality/value – This paper responds to calls for theoretical claims based on a comprehensive distinction of how a social network perspective based on social capital is an important condition for the development of dynamic capabilities of a firm's internationalisation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Strategy and Management Emerald Publishing

Social capital and dynamic capabilities in international performance of SMEs

José Carlos M.R. Pinho
Journal of Strategy and Management , Volume 4 (4): 18 – Oct 25, 2011
Download PDF
18 pages

Loading next page...
 
/lp/emerald-publishing/social-capital-and-dynamic-capabilities-in-international-performance-YTOs44A9Ha
Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1755-425X
DOI
10.1108/17554251111181034
Publisher site
See Article on Publisher Site

Abstract

Purpose – The major goals of this paper are twofold: first, it aims to explore the link between social capital (structural, relational and cognitive) and the exploitative and explorative capabilities; second, to examine the influence of exploitative and explorative capabilities on international performance. Design/methodology/approach – This paper is conceptual in nature and relies on a conceptual model that builds on and synthesizes the theoretical foundations of social capital (structural, relational and cognitive), dynamic capabilities and international performance. Findings – A useful framework for further research in the social network field and dynamic capabilities is presented. In order to build new dynamic capabilities to cope with turbulent and unpredictable markets, small to medium‐sized enterprises (SMEs) need to leverage their network relationships that provide access to novel sources of information. These dynamic capabilities may in turn positively influence international performance. Practical implications – The paper may assist other researchers with a different template of possible relationships that can better explain international performance. Originality/value – This paper responds to calls for theoretical claims based on a comprehensive distinction of how a social network perspective based on social capital is an important condition for the development of dynamic capabilities of a firm's internationalisation.

Journal

Journal of Strategy and Management – Emerald Publishing

Published: Oct 25, 2011

Keywords: Social capital; Dynamic capabilities; International performance; Small to medium‐sized enterprises; Organizational performance

References

  • Social capital: prospects for a new concept
    Adler, P.; Known, S.
  • Even dwarfs started small: liabilities of age and size and their strategic implications
    Aldrich, H.; Auster, E.
  • The impact of social networks on business foundings and profit: a longitudinal study
    Aldrich, H.; Rosen, B.; Woodward, W.
  • Resolving the capability‐rigidity paradox in new product innovation
    Atuahene‐Gima, K.
  • Exploratory and exploitative learning in new product development: a social capital perspective on new technology ventures in China
    Atuahene‐Gima, K.; Murray, J.
  • Organisational culture: can it be a source of sustained competitive advantage?
    Barney, J.
  • Firms resources and sustained competitive advantage
    Barney, J.
  • Dynamic capabilities, social capital, and rent appropriation: ties that split pies
    Blyler, M.; Coff, R.
  • How the resource‐based and the dynamic capability views of the firm inform corporate‐level strategy
    Bowman, C.; Ambrosini, V.
  • Foreign direct investment by small and medium sized enterprises: the theoretical background
    Buckley, P.
  • Structural Holes
    Burt, R.
  • The relationship between firm size and export market behavior revisited
    Calof, J.
  • Absorptive capacity: a new perspective on learning and innovation
    Cohen, W.; Levinthal, D.
  • Social capital in the creation of human capital
    Coleman, J.
  • Internationalization and the smaller firm: a review of contemporary empirical research
    Coviello, N.E.; McAuley, A.
  • Internationalization of service SMEs: an integrated perspective from engineering consulting sector
    Coviello, N.E.; Martin, K.
  • Growing the entrepreneurial firm: networking for international market development
    Coviello, N.; Munro, H.
  • Market knowledge, diversification and export expansion
    Denis, J.; Depelteau, D.
  • The relational view: cooperative strategy and sources of inter organizational competitive advantage
    Dyer, J.; Singh, H.
  • Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices
    Døving, E.; Gooderham, P.
  • Dynamic capabilities: what are they?
    Eisenhardt, K.; Martin, J.
  • Symbiotic international business networks: collaboration between small and large
    Etemad, H.; Wright, R.; Dana, L.
  • A formal theory of social power
    Friedkin, N.
  • Trapped in your own net? Network cohesion, structural holes, and the adaptation of social capital
    Gargiulo, M.; Benassi, M.
  • Rediscovering the social in the economics of inter‐firm relations
    Grabher, G.
  • The strength of weak ties
    Granovetter, M.
  • The resource based theory of competitive advantage: implications for strategy formulation
    Grant, R.
  • A resource perspective of global dynamic capabilities
    Griffith, D.; Harvey, M.
  • Does familiarity breed trust? The implications of repeated ties for contractual choice alliances
    Gulati, R.
  • Network location and learning: the influence of network resources and firm capabilities on alliance formation
    Gulati, R.
  • Strategic networks
    Gulati, R.; Nohria, N.; Zaheer, A.
  • Developing social capital to achieve superior internationalization: a conceptual model
    Han, M.
  • Know‐how and asset complementarity and dynamic capability accumulation: the case of R&D
    Helfat, C.
  • Patterns of multidimensionality among embedded network ties: a typology of relational embeddedness in emerging entrepreneurial firms
    Hite, J.
  • Leveraging internal and external experience: exploration, exploitation, and R&D project performance
    Hoang, H.; Rothaermel, F.
  • Social capital, networks, and knowledge transfer
    Inkpen, A.; Tsang, E.
  • Alliance management as a source of competitive advantage
    Ireland, R.; Hitt, M.; Vaidyanath, D.
  • The internationalization process of the firm‐a model of knowledge development and increasing foreign market commitments
    Johanson, J.; Vahlne, J.‐E.
  • The Uppsala internationalization process model revisited: from liability of foreignness to liability of outsidership
    Johanson, J.; Vahlne, J‐E.
  • Social networks and speed of new venture internationalization during institutional transition: a conceptual model
    Kiss, A.; Danis, W.
  • The born global firm: a challenge to traditional internationalisation theory
    Knight, G.; Cavusgil, S.
  • Network dyads in entrepreneurial settings: a study of governance of exchange relationships
    Larson, A.
  • Exploration, exploitation and adaptive rationality: the Neo‐Shumpeterian perspective
    Lee, J.; Lee, J.; Lee, H.
  • An evolutionary perspective on strategic group emergence: a genetic algorithm‐based model
    Lee, J.; Lee, K.; Rho, S.
  • Identifying managerial influences on exporting: past research and future directions
    Leonidou, L.; Katsikeas, C.; Piercy, N.
  • The myopia of learning
    Levinthal, D.; March, J.
  • Absorptive capacity, environmental turbulence, and the complementarity of organizational learning processes
    Lichtenthaler, U.
  • The internationalization and performance of SMEs
    Lu, J.; Beamish, P.
  • Toward a synthesis of the resource‐based and dynamic capability views of rent creation
    Makadok, R.
  • Exploration and exploitation in organizational learning
    March, J.
  • The influence of international networks on internationalization speed and performance: a study of Czech SMEs
    Musteen, M.; Francis, J.; Datta, D.
  • Social capital, intellectual capital and the organizational advantage
    Nahapiet, J.; Ghoshal, S.
  • Western and Eastern views on social networks
    Pablos, P.
  • The resource‐based view and international business
    Peng, M.
  • The Theory of Growth of the Firm
    Penrose, E.
  • Neither market nor hierarchy: network forms of organization
    Powell, W.
  • Dynamic capabilities, internationalization processes and performance
    Prange, C.; Verdier, S.
  • Bowling alone: America's declining social capital
    Putman, R.
  • Dynamic capabilities as macro and micro organizational evolution
    Rindova, V.; Taylor, S.
  • Exploration and exploitation alliances in biotechnology: a system of new product development
    Rothaermel, F.; Deeds, D.
  • Building dynamic capabilities: innovation driven by individual‐, firm‐, and network‐level effects
    Rothaermel, F.; Hess, A.
  • A capabilities perspective on the effects of early internationalization on firm survival and growth
    Sapienza, H.; Autio, E.; George, G.; Zahra, S.
  • Translating knowledge to build technological competence
    Savory, C.
  • The uncertain relevance of newness: organizational learning and knowledge flows
    Schultz, M.
  • International performance measurement: an evaluation of the empirical research literature
    Sousa, C.
  • Dynamic capabilities and strategic management
    Teece, D.; Pisano, G.; Shuen, A.
  • Social capital, strategic relatedness and the formation of intra‐organizational linkages
    Tsai, W.
  • Knowledge transfer in intraorganizational networks: effects of network position and absorptive capacity on business unit innovation and performance
    Tsai, W.
  • Social capital and value creation: the role of intrafirm networks
    Tsai, W.; Ghoshal, S.
  • The impact of network capabilities and entrepreneurial orientation on university spin‐off performance
    Walter, A.; Auer, M.; Ritter, T.
  • A resource‐based view of the firm
    Wernerfelt, B.
  • Understanding dynamic capabilities
    Winter, S.
  • Social capital, knowledge acquisition, and knowledge exploitation in young technology‐based firms
    Yli‐Renko, H.; Autio, E.; Sapienza, H.
  • Entrepreneurship and dynamic capabilities: a review, model and research agenda
    Zahara, S.; Sapienza, H.; Davidsson, P.
  • The net‐enabled business innovation cycle and the evolution of dynamic capabilities
    Zahra, S.; George, G.
  • Deliberate learning and the evolution of dynamic capabilities
    Zollo, M.; Winter, S.
  • Dynamic capabilities and the emergence of intra‐industry differential firm performance: insights from a simulation study
    Zott, C.