Shaping and re-shaping social capital in buyer-supplier relationships

Social capital plays an important role in explaining how value is created from firms' network relationships, but little is understood about how social capital is shaped over time and how it is re-shaped when firms consolidate their network ties. In response, this study explores the evolution of social capital in buyer-supplier relationships through a case study of a company undertaking radical product innovation, and examines the corresponding changes in the firm's network of buyer-supplier relationships. The analysis shows that social capital is built in a decidedly non-linear and non-uniform manner. The study also reveals considerable interaction among the dimensions of social capital throughout the evolution of the firm's network, and emphasizes the importance of the cognitive dimension—a feature receiving little attention thus far. The evidence shows, too, that efforts to strengthen social capital need to increase when network ties are sacrificed to prevent unintended consequences for firms' longer-term value creation.     

Conclusion: the central role of human and social capital

Abstract

The roles of human and social capital in fostering societal stability and progress are analyzed here in the basis of a series of empirical studies in the Asian region, each illuminating a separate aspect of the overall question: how does culture play a part in the socio-political economy? The studies cover the response of people in the Indonesian tourism industry to radical market changes; the impact of western-inspired management tools on workers in the Thai and Vietnamese industrial complexes; the ways in which credentials play a part in regional professional networking; the impact of worsening environment threats from flooding on workforce location and organizing; the not-always-benign workings of regional business networks of personal reciprocity; and the managerial ideology of many Indonesian companies. Human and social capital are illustrated here as largely invisible but still significant catalysts in the complex dynamics of countries striving to establish their own formulae for prosperity.     

The influence of social capital on strategic choice: An examination of the effects of external and internal network relationships on strategic complexity

In this research we investigated the direct contributions of social capital via network involvement to the strategic complexity of firms. Specifically, we looked at three network types - trade associations, external personal networks, and internal personal networks - to assess their individual and collective effects on strategic complexity. We empirically tested the relationships in the rural telecommunications industry using a mailed survey to this population's CEOs. We obtained 203 responses (30% response rate). Using Poisson regression, we found that all three network types were positively associated with strategic complexity, which was measured as product portfolio breadth. We also discovered that initial conditions affected strategic outcomes, with larger firms and cooperative ownership associated with greater strategic complexity.     

从社会资本视角的企业创新研究

在高度竞争的市场环境中,创新是企业保持竞争优势和持续发展的根本。激烈的竞争使企业认识到创新对企业的重要意义,而且越来越多的企业认识到单一企业的资源和能力已不足以满足企业创新的要求,企业需通过广泛的外部合作进行内外资源的整合,使企业在内外部的关系网络中获得竞争优势。为提高企业的创新能力,有必要从社会资本视角对企业创新进行研究,分析社会资本对企业创新的制约,从而制定相应的解决对策。     

The impact of knowledge management on innovation and entrepreneurship in the biotechnology and telecommunications industries

In the resource-based view approach, the knowledge frontier rests on the understanding of the process of creating and recreating distinctive competences. Moreover, in spite of the importance of knowledge assets, how innovation distinctive competences are generated in organizations is still an unknown factor. This research studies the effect of introducing knowledge management programs in the development of innovation distinctive competences, using two knowledge intensive industries. We establish a conceptual delimitation of knowledge management as a directive system through a set of principles and practices. The theoretical relationships we propose are tested in an empirical study carried out in 222 firms from the Spanish biotechnology and telecommunications industries.      

Knowledge creation capability in MNC subsidiaries: Examining the roles of global and local knowledge inflows and subsidiary knowledge stocks

Grounded in knowledge-based theories of the multinational corporation (MNC) and building on organizational learning literature, this paper develops and tests a model of MNC subsidiaries’ knowledge creation capability as a joint function of knowledge inflows to subsidiaries and their knowledge stocks (i.e., subsidiaries’ internal human, social, and organizational capital). Survey-based data from 106 subsidiaries located in the U.S. suggests that local (i.e., host country) knowledge inflows to a subsidiary are more effective in enhancing a subsidiary's knowledge creation capability compared to global knowledge inflows from other units of the same MNC. Furthermore, results point to a not-invented-here syndrome in the exploitation of knowledge sourced from the parent company; such that when a subsidiary's internal social capital is high, the relationship between global knowledge inflows and knowledge creation capability is negative and when it is low, the relationship becomes positive.     

The effects of industry cluster knowledge management on innovation performance

Research on industrial clusters mostly focuses on the effects of the competitive advantage they generate. This study takes a different approach, conducting empirical research on three types of Taiwanese parks (export processing zones, industrial zones, and science parks), in which economic development is particularly prominent, and which have industry cluster characteristics. The study explores the effects of special resources and relationships among cluster firms on innovation performance, and focuses on knowledge management as the mediator for investigation. A survey, regression analysis, and correlation analysis probe into the effects of the special resources and relationships among industrial clusters on corporate knowledge management and innovation performance. Knowledge management emerges as the mediator of industry clusters in terms of corporate innovation performance, thus providing support for the research hypotheses. The findings of this study are valuable for further research and strategic thinking on the sustainability of corporate operations.     

Exploring the antecedents of social liabilities in CVC triads—A dynamic social network perspective

This study addresses the emergence of social liabilities by taking a social network perspective on intra- and interorganizational network configurations using the hitherto unexplored example of the corporate venture capital (CVC) triad (CVC unit, corporate business unit, and portfolio company). We investigate social capital and social liability resulting from network formation and transformation and assess their impact on interorganizational knowledge transfer and creation. Examining 12 CVC triads in Germany, we identify new antecedents of social liability, show that social capital can initially facilitate knowledge transfer and creation, and that structural and personal lock-ins may eventually turn that capital into a liability. We make key theoretical contributions to the social network and CVC literature.     

Global talent management: A life cycle view of the interaction between human and social capital

We present a theoretical model that describes the interaction between social and human capital and the different forms that such an interaction may take – positive and negative. Extending the concepts of stocks and flows of knowledge, this model evaluates social capital flows against human capital stocks. When we compare these flows to the value of human capital, we are able to better understand how these resources can interact with each other, influence global talent development, and change over time. We discuss the implications for practices in global talent management in selecting, developing, and harnessing talent.     

Managerial learning from social capital during internationalization

This study explores managerial learning from social capital during internationalization. Its two research questions are these: (1) how different managers perceive, interpret, and respond to foreign-market institutions, and (2) how connections, relations, and cognition enhance managerial learning. Using an interpretive approach, the study analyzes patterns of internationalization and strategic decision-making in four contrasting Norwegian case companies that internationalize to the Russian oil and gas market. The findings show that the managers of the case companies hold similar perceptions about foreign-market institutions, but that they interpret and respond to those institutions from various levels of learning, resulting in different enactment on institutions. Managers learning at a “higher” level adapt patterns and decisions to ensure institutional conformity, while those at a “lower” level makes minor adjustments in patterns and behavior only when necessary and therefore maintain institutional conflict. Further, the findings show that all three dimensions of social capital have a vital role in enhancing managerial learning, but that the various forms that the dimensions can appear as, affects the learning process. Furthermore, the findings show that managers who share cognitive frame of reference with few embedded relationships are better equipped to interpret and respond to institutions. This study contributes fresh insight about managerial enactment on foreign-market institutions, and reconciles our understanding about social capital as embraced by the structural, relational, and cognitive dimensions. This study also contributes to a greater understanding about how the three dimensions of social capital ought to be formed to enhance managerial learning.     

Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities

Although entrepreneurship scholars highlight bootstrapping as a key resource acquisition approach to respond to the inherent resource constraints that nascent ventures face, little is known about what causes nascent ventures to engage in bootstrapping. Theory highlights the environment as an important determinant of bootstrapping activity. Analyzing bootstrapping behavior of 298 nascent ventures, we find that beyond perceived environmental factors, individual characteristics of the nascent entrepreneurs and factors relating to the embeddedness of the entrepreneurs in the environment determine their venture's bootstrapping behavior. In a more fine-grained analysis we gain insights into how these antecedents shape the use of particular bootstrapping strategies. Findings contribute to our understanding of factors driving resource management approaches in nascent ventures.     

Managing cross-border knowledge transfer for innovation: An introduction to the special issue

This introduction to the special issue maps the extant research on managing crossborder knowledge for innovation and classifies it into four clusters: knowledge spillovers and location, international alliances and R&D networks, knowledge transfer and absorptive capacity, and learning organization and capabilities. The eleven articles that compose the special issue are introduced, and a future agenda for international business research is proposed.     

Venture capital as an innovation ecosystem engineer in an emerging market

How can venture capital (VC) firms transform a weak innovation ecosystem into a productive and robust one? While the literature has found VC firms’ catalyst role in innovation in developed markets, we know little about whether and how they affect innovation in an emerging market, where formal institutions (e.g., regulations and markets) and informal institutions (e.g., professional networks) to enable VC firms’ catalyst role are relatively lacking. First, we argue that VC firms play a different and more proactive role in these markets as an “ecosystem engineer” through governing the resource flow and selecting deviation, which drive regional innovation performance. Second, such effects are further positively moderated by the presence of multinational enterprises (MNEs) in a region. Lastly, over time, while the direct effects of VC firms persist and increase, the moderating effects of MNE presence decline. Empirically, we examined a Chinese provincial-level panel data of VC activities (1999–2009) and patent applications (2000–2010) and found supportive evidence. Implications are discussed.     

Towards a framework for innovation in retailing through social media

Retail firms are increasingly using social media for purposes other than traditional marketing, such as innovation. Yet, while the innovation literature has established the benefits of involving customers in the development of products/services through open innovation, the role of social media in innovation is not well understood. Accordingly, we investigate how social media drives innovation in retail businesses. Using data from 414 firms, we find that social media positively relates to radical and incremental innovation, mediated by multiple digital channels and moderated by digital capabilities. Consequently, we propose a social media dynamic capabilities framework to guide future research and innovation in retail business.     

Strategic human resource practices and innovation performance — The mediating role of knowledge management capacity

This study examines the role of knowledge management capacity in the relationship between strategic human resource practices and innovation performance from the knowledge-based view. This study uses regression analysis to test the hypotheses in a sample of 146 firms. The results indicate that strategic human resource practices are positively related to knowledge management capacity which, in turn, has a positive effect on innovation performance. The findings provide evidence that knowledge management capacity plays a mediating role between strategic human resource practices and innovation performance. Finally, this study discusses managerial implications and highlights future research directions.     

Technology,innovation and knowledge: The importance of ideas and international connectivity

The relevance of ideas is at the core of the IB field and has been captured in concepts like technology, innovation and knowledge. While these concepts have evolved over the last decades, the point that the ideas and the international connectivity are central for IB remains genuine. This paper is an attempt to take stock of the evolution of the concepts technology, innovation and knowledge in IB literature along the past five decades with a particular focus on the role of the Columbia Journal of World Business (CJWB) and the Journal of World Business (JWB) in this evolution. Likewise, our objective is to offer a research agenda for the coming decade. We proceed in two steps. First, we scrutinize how the IB literature has progressed and expanded over the last five decades, illustrating this on the basis of articles published in CJWB and JWB. Second, we take a helicopter view on this literature and reflect on the insights we have gained and the challenges the IB field has ahead that can constitute the basis for a future research agenda. We highlight the importance of creating a micro-foundation of knowledge processes where mechanisms on the interaction between the higher levels (nation, firm, teams) and the individual level are clarified.     

Entrepreneurial networks: A Triple Helix approach for brokering human and social capital

Through utilising currently available Internet technologies, academic and governmental organisations can provide seedling companies in their incubators with additional competitive advantage through efficient access to markets, partners, knowledge and services both locally and globally. This paper proposes a Triple Helix approach for brokering social and human capital based on the skills brokerage business model. The skills brokerage business model is primarily suited for individuals and firms operating in localised settings. However, by using information and communication technologies, it is also possible to apply the model internationally for firms that need strategic partnerships in countries or regions other than their own. Coupled with the Triple Helix of university–government–industry interactions, it can propel innovation and the commercialisation of it beyond traditional boundaries of geography, such as the region and nation state. The paper also presents an Internet-based service that could be used to facilitate the brokerage process among the firms and people with relevant expertise and resources, and it discusses the implications this would have for a number of stakeholders, such as entrepreneurs, established businesses, service providers and business support organisations. This is still an emerging area and several themes for future research will be highlighted.     

Taking stock of social capital research: its application in service-oriented firms

Abstract

Notwithstanding the substantial literature on social capital produced in recent years, there have been fewer attempts to examine social capital within the services industry. Our contribution highlights existing research on social capital particularly on the application and outcomes of social capital in the context of service-oriented firms in the Asia Pacific region. We structure our analysis of existing research around the different approaches of social capital studies – either egocentric or sociocentric approach and the focus on the creation and outcomes of social capital. The analysis on the different perspectives of social capital research contributes to our further understanding in the areas of social capital and services industry in the Asia Pacific. The implications for theory and management practice are noted.     

The influence of social capital through social media: a study of the creation of value in shopping behaviour

When consumers access information from groups through social network sites (SNSs), they develop social capital in the form of bonding and bridging ties with these groups. The purpose of this study is to investigate the influence of these bonding and bridging behaviours on consumers’ use of the social network information (SNI) gained from SNSs in their purchasing decisions. The study integrates constructs from the Technology Acceptance Model and the concept of flow to examine how these behaviours influence consumers’ perceptions of how useful the SNI is, of how easy the SNI is to use, and how they engage with SNI. The study utilizes structural equation modelling to examine questionnaire data from a random sample of social network users. The findings demonstrate that bonding and bridging ties influence consumers’ perceptions of the usefulness and ease of use of the information provided by SNSs, and therefore influence their use of the information when making shopping decisions. In addition, consumers who access SNI through bonding ties are likely to have flow experiences which further contribute to their use of the information. This study makes a theoretical contribution by expanding knowledge of the social capital influences on consumers’ perceptions of the value of the social media shopping experience.     

How venture capitalists respond to unmet expectations: The role of social environment

In this paper, we seek to explain venture capitalists' reactions to disappointments caused by entrepreneurs. Our basic assumption is that venture capitalists' social environment, defined as exposure to venture capital and business communities, will influence their responses to problematic situations. The results of our study suggest that venture capitalists with strong ties to their colleagues and with managerial experience are more inclined to use active and constructive approaches than venture capitalists with a lesser exposure to the venture capital and business communities.