Disruptive innovation and the creation of social capital in Indonesia’s urban communities

Abstract

Existing research on social capital has primarily focused on examining the outcomes of social capital, whether these are about individual, organizational or even societal outcomes. However, much research is still needed in terms of examining how social capital is created. We contribute to filling this gap by examining the ways in which social capital is created in urban communities in an emerging economy. Social capital, in this study, is viewed as being created as a consequence of an organization’s disruptive innovation. We analyse the context of Go-Jek, a rather newly established service firm in Indonesia, and examine how the disruptive innovation of Go-Jek’s service provision influences the creation of social capital in terms of social connectedness, trust, and shared understanding, in Indonesia’s urban communities.     

Exploring antecedents of customer citizenship behaviors in services

Social exchange theory explains how a party in social interaction provides the other party with reciprocal rewards. Applying this concept to the customer context, this study empirically investigates determinants of customer citizenship behaviors (CCBs) in services. For the generalizability of the study across various service providers, the data were collected based on Bowen’s (1990) classifications of services. With a total of 665 usable customer responses, structural equation modeling was adapted to test the theoretical research model. This study reveals that customers’ perceived support and justice from the service provider positively influence affective commitment toward the organization, resulting in CCBs. The results show that customers’ perception of organizational support has the partial mediation effect between customers’ perception of organizational justice and their affective commitment. Furthermore, customers’ affective commitment partially mediates the relationship between customers’ perceived organizational justice and CCBs, but fully mediates the effect of customers’ perceived organizational support on CCBs.     

企业本质新认识:基于资本裂变的视角

本文将现代西方企业理论的主流观点归纳为四种 ,对它们进行了总结性评论并指出其存在的逻辑悖论。在系统比较马克思企业制度理论与现代西方企业理论的基础上 ,以企业的契约性为逻辑起点 ,利用资本概念作为一种分析工具来研究企业本质问题 ,并将其界定为不完备要素使用权资本化交易合约履行的过程。不仅如此 ,本文基于现代企业资本范畴的演进逻辑 ,将财务资本、人力资本、组织资本与社会资本整合到一个逻辑一致的企业理论体系中 ,是对企业本质的新认识。     

How to Become Central in an Informal Social Network: An Investigation of the Antecedents to Network Centrality in an Environmental SCM Initiative

Environmental supply chain management (SCM) initiatives often evolve as informal, grassroots efforts that are driven by policy entrepreneurs at lower management levels in an organization. These individuals usually are not in positions of power or authority to convince others to support the initiative. They thus rely on central positions in informal networks to gain access to and influence over other employees to be better able to sell these initiatives. This study examines how individuals arrive at positions of centrality within the networks surrounding environmental SCM initiatives. Linking social network theory and social capital theory with findings from the organizational behavior and environmental arena, the study investigates how an individual's proactive personality and commitment profile—affective, normative, and continuance commitment—might affect network centrality through the mediating role of championing behavior. Investigating the implementation of an environmental SCM initiative at a multinational enterprise, the authors identified a 90‐actor social network surrounding the initiative. The results provide evidence that championing behavior fully mediates the relationship between commitment and network centrality and to a lesser extent between proactive personality and network centrality. These findings suggest that championing behavior can enable an actor to become more central in social networks. Further, the results indicate that in an environmental SCM context, engendering the right type of commitment is a much more important driver of championing behavior than the proactive personalities of individual actors. This finding suggests that even employees who do not have proactive personalities can champion environmental initiatives and become central within the informal networks that surround these initiatives, if they strongly desire to support the initiative and believe that the initiative will lead to positive change.     

Enhancing frontline employee support during a product-harm crisis: Evidence and strategic managerial implications for firms

Product-harm crises can negatively affect a firm's corporate image, reputation, and credibility. This research investigates antecedents and factors that can impact the extent to which frontline employees will be supportive of their organization when the firm faces such a crisis. Leveraging social exchange theory and its focus on reciprocal exchanges, we theorize and test processes using regression models, which shed light on how managers can solicit employee support during crises situations by providing the frontline employees with ethical and supportive working conditions. To offer convergent validity across multiple methodologies, we also test the influence of experimental effects of the relative severity of a crisis and whether a firm was quick or slow in its response on frontline employee support. Furthermore, our research demonstrates that the firm's strengths in corporate social responsibility, the employees' organizational citizenship behavior, and employee organizational identification serially mediate the supportive relationship, which provides a unique contribution to the marketing literature. Finally, we provide managerial implications to further enhance frontline employee support.     

The Effects of Commitment of Non-Family Employees of Family Firms from the Perspective of Stewardship Theory

Although commitment is one of the attributes of family firms of continuing interest to researchers, they almost always study it from the perspective of the owning family. In the current work, we analyze the commitment of the non-family employees. We propose a model of commitment, with the aim of studying the implications that this variable may have for family businesses. We study both the aspects on the basis of the approaches of Meyer and Allen’s three-component model of organizational commitment and stewardship theory. Results show that the identification level of non-family employees positively and significantly influences the profitability and the survival or continuity of family-owned businesses. At the same time that their involvement level positively and significantly influences the survival or continuity of family-owned businesses.     

资本概念拓展与企业核心能力理论范式演变

随着科学技术的进步、生产力的发展、经济形态的变化和企业性质的变迁,企业资本已从传统的"物质资本"范畴发展成为一个由物质资本、人力资本、知识资本和社会资本等资本子范畴组成的体系,建立在这一基础上的资本理论即为新资本理论。企业核心能力历经物质资本主导型、人力资本主导型、知识资本主导型、社会资本主导型等范式的演变。历史地看,这些资本类别与核心能力范式分别代表和适用于古典企业、传统公司制企业、新经济条件下的知识型企业及网络组织。     

Ethical Managerial Behaviour as an Antecedent of Organizational Social Capital

There is a need of further research to understand how social capital in the organization can be fostered. Existing literature focuses on the design of reciprocity norms, procedures and stability employment practices as the main levers of social capital in the workplace. Complementary to these mechanisms, this paper explores the impact of ethical managerial behaviour on the development of social capital. We argue that a managerial behaviour based on the true concern for the well-being of employees, as well as their motivational and ethical development, can be particularly important for the generation of social capital in the organization. It is suggested that manager’s behaviour should be based on three principles: following exemplary behaviour, helping the employees to value the consequences of their actions in other persons, and not betraying employee’s trust. When the manager conforms to those principles, he can ease the process through which employees develop associability and identification-based trust with the firm, the two main components of ?Organizational Social Capital’. Bringing ethics into the debate of social capital creation seems to us fundamental, as social capital in the firm is likely to be influenced by the ethical and motivational development of its members.     

The impact structure of social capital on corporate performance: Empirical evidence from listed companies in China

Vertical relationships with the government, particular relational capital and organizational social network capital, constitute corporate social capital (CSC). Using the empirical data of 97 listed companies in China, this paper examines the impact of CSC on corporate performance, finds that CSC has a positive impact on sales revenue but an insignificant impact on the improvement of ROA. More specifically, when a firm enlarges its sales revenue, the function of organizational network capital is stronger than that of a particular relational capital and that of governmental connections. The paper also finds that state-owned enterprises (SOEs) have more advantages in using governmental connections, therefore leading to better social status than non-SOEs do, who have fewer advantages in using any particular relational capital. The article suggests that managers should appraise carefully the effectiveness of CSC, and combine it with other resources; firms should distinguish the structure of the impact of CSC on performance improvement in a dynamic way. With respect to the implication of this paper, it could help in analyzing firm behaviors in the transitional China. Translated from paper in International Symposium on Entrepreneur Research and Education, 2006, April (in Chinese)     

管理者角色新探

传统的管理者角色理论是适应于传统组织环境条件下的管理活动的。管理者角色理论随着管理实践和管理理论的发展,应加以丰富和完善。战略所有者、核心能力培育者、资源整合者、组织文化传播者、社会责任倡导者就是对管理者角色的新发展。     

The moderating impact of internal social exchange processes on the entrepreneurial orientation–performance relationship

This paper applies a social exchange perspective to understand the internal contingencies of the relationship between entrepreneurial orientation (EO) and performance. It focuses on two aspects of social interactions among functional managers (procedural justice and trust), as well as on their organizational commitment, as potential enhancements to the firm's successful exploitation of entrepreneurial opportunities. A study of 232 Canadian-based firms finds several positive moderating effects: The EO–performance link is stronger for higher levels of procedural justice, trust, and organizational commitment. In addition, consistent with a systems approach to organizational contingencies, the EO–performance relationship is stronger when the organization's social context comes closer to an “ideal” configuration of procedural justice, trust, and organizational commitment that is most conducive to knowledge exchange within the organization. The study's implications and future research directions are discussed.     

Strategic fit: Key to growing enterprise value through organizational capital

Organizational capital is an intangible asset that is a continuous creator of value through generating above-normal revenue growth, innovation, operational excellence, and stakeholder relationships. The elusive nature of organizational capital stems from competing perspectives on how it can be defined and managed. This article presents a comprehensive model for understanding the critical process, components, and necessary linkages that result in increased enterprise value through the creation of organizational capital. Attention is given to the factors that influence organizational capital (fit among leadership, strategy, and organization design), its influence on human capital, and, ultimately, the impact on operational excellence, stakeholder capital, and the essential levels of innovation that drive capital efficient growth. Guidance is provided for the CEO, CFO, and CHRO wishing to harness the power of organizational capital and increase both current and future value of the firm.     

The fallacy of “only the strong survive”: The effects of extrinsic motivation on the persistence decisions for under-performing firms

Under-performing firms persist even though existing theoretical perspectives indicate that they should be selected out of the market. Building upon threshold theory [Gimeno, J., Folta, T., Cooper, A., Woo, C., 1997. Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly 42, 750–783.] and using Staw's [Staw, B.M., 1981. The escalation of commitment to a course of action. Academy of Management Review 6 (4), 577–587.] theoretical model of commitment to a course of action, we explore and test the factors that lead entrepreneurs to persist with under-performing firms. We found environmental munificence, personal investment, personal options, previous organizational success, and perceived collective efficacy impact the decision to persist with an under-performing firm. In addition, extrinsic motivation moderates those relationships. This research adds to the growing literature on highly persistent, under-performing firms and complements and extends threshold theory.     

Diffusing market orientation to drive marketing capital: evidence from Vietnam

Although Vietnam’s transition to a market-oriented economy has produced stunning results, the economy is still lacking qualified marketers. This study investigates underlying factors that are fundamental drivers of Vietnam’s economic renaissance, including the role of market orientation at the marketer level (i.e. marketers’ market orientation) in marketing capital pool, and subsequently, marketers’ occupational commitment. Based on data collected from 351 marketers working for various firms in Ho Chi Minh City, the study finds that marketers’ market orientation has a positive impact on marketing capital pool. Further, marketing capital pool invested by marketers has a positive impact on their occupational commitment. Finally, firm ownership moderates the relationship between marketers’ market orientation and marketing capital pool, and gender moderates the relationship between marketing capital pool and marketers’ occupational commitment. Implications for Vietnam and other transitioning economies are discussed.     

Do employees value strategic CSR? A tale of affective organizational commitment and its underlying mechanisms

Virtually all studies that focus on the relationship between CSR perceptions and employees’ organizational commitment have not taken into consideration the fit between social and environmental activities and a firm’s business‐unit strategy. This is essential to inquire because scholars have argued that when companies ingrain CSR activities into their strategy‐making process (i.e., in their vision, mission, and overall business model), this might send a more compelling message that resonates closer to workers’ personal standards, and actually enhance employee‐level outcomes. Nevertheless, there is no certainty “if” and “how” these evaluations could affect employees’ organizational commitment. To address this issue, we use cue consistency theory and social identity theory as overarching frameworks to develop a model where we conceptually link perceptions of strategy‐CSR fit with a particular type of organizational commitment: affective. In addition, we posit and test three mediators to understand the underlying psychological mechanisms of this relationship: perceived external prestige, organizational identification, and work meaningfulness. Through structural equation modeling, and using a heterogeneous final sample of 579 employees, we find compelling evidence to support the fact that strategy‐CSR fit enhances employees’ affective organizational commitment through the proposed mediators. Academic contributions and practical implications are then discussed.     

DEVELOPING SOCIAL IDENTITY AND SOCIAL CAPITAL FOR SUPPLY CHAIN MANAGEMENT

Competition involves not firm against firm but rather supply chain against supply chain, but few studies explain theoretically the subsistence of a supply chain as a social entity or the operating mechanisms through which firms socialize to obtain better business performance. On the bases of social identity theory and social capital theory, the authors suggest that the salience of supply chain identity accumulates social capital in a supply chain, which then facilitates supply chain management and improves business performance.     

The Dynamics of Motivation in New Organizational Forms

This paper discusses the impact of the dynamics of motivation on new organizational forms that are suited to forge value-creating knowledge transfers in teams and between organizational units and functions. Our aim is to develop the management of motivation as a source of distinctive firm competences. We argue that motivation is an endogenous variable and introduce it as a crucial link into the theory of the firm. Balancing intrinsic and extrinsic motivation helps to overcome social dilemmas in firms that are not solvable by hierarchical authority. Integrating the dynamics of motivation is a step to a more comprehensive theory of organization. It links organizational economics to the knowledge-based perspective.     

Linking Social Issues to Organizational Impact: The Role of Infomediaries and the Infomediary Process

When do organizations decide to ‘adopt’ a given social issue such that they come to acknowledge it in their patterns of action and communication? Traditional answers to this question have focused either on the characteristics of the issue itself, or on the traits of the focal organization. In many cases, however, a firm’s decision to adopt or ignore an issue is not a straightforward function of firm or issue characteristics. Instead, we view issue adoption as a socially constructed process of information exchange between parties that are involved in the emergence and evolution of the issue, mediated by third-party organizations. We refer to this process as the infomediary process and these latter organizations as ‘infomediaries,’ after the information mediation and brokerage roles they play in the social processes linking social issues to organizational impact. We present a concise theoretical model of how infomediaries establish credible linkages between focal organizations and social issues. The thrust of the model is that the infomediation process, rather than the issue or firm characteristics, is what really drives firm-level issue adoption decisions.     

‘The Impact of Corporate Ethical Values and Enforcement of Ethical Codes on the Perceived Importance of Ethics in Business: A Comparison of U.S. and Spanish Managers’

This two country study examines the effect of corporate ethical values and enforcement of a code of ethics on perceptions of the role of ethics in the overall success of the firm. Additionally, the impact of organizational commitment and of individual variables such as ethical idealism and relativism was examined. The rationale for examining the perceived importance of the role of ethics in this manner is to determine the extent to which the organization itself can influence employee perceptions regarding ethics and social responsibility. Results indicate that all of the variables tested, except relativism, impacted upon one’s perceptions of the importance of ethics and social responsibility. Perceptions of the importance of ethics and social responsibility also varied depending upon country of residence with the U.S. sample having somewhat higher perceptions concerning the importance of ethics and social responsibility than their counterparts in Spain. Furthermore, when comparing the two samples, the U.S. sample had significantly higher corporate ethical values, greater enforcement of ethical codes, less organizational commitment and both lower idealism and relativism.     

Financial Attitudes in Family Firms: The Moderating Role of Family Commitment

This study investigates how family commitment moderates whether and how financial knowledge, positive experience with debt suppliers, and economic goal orientation affect owner–managers' attitudes toward debt financing in family firms. Using a sample of 280 German family firms, we find significant relationships between both financial knowledge and positive experience with debt suppliers and owner–managers' financial attitudes toward debt. Our findings show that family commitment moderates these relationships such that high family commitment increases the impact of prior experience with debt suppliers, though the effect of economic goal orientation is lowered and reversed. Overall, we contribute to research on financial decision making, capital structure, and social capital in family firms.