Crime,community social capital and entrepreneurship: Evidence from Australian communities

Crime is an anti-social blight on communities that increases the cost of doing business, including for entrepreneurs. Drawing on Australian longitudinal data, this study examines the links between crime rates and the propensity for entrepreneurship within communities. We do so by matching propensity for entrepreneurship with types of crime found at the community level where crime occurs. We find that higher total crime rates, crimes against the person and property crime, significantly lower the propensity for entrepreneurship in communities. We also show that the core facets of community social capital – trust, membership in voluntary organizations and support and cooperation – mediate this relationship.Executive summaryWe comprehensively examine whether higher community crime rates – crime on people and crime on property – cause lower rates of entrepreneurship. Entrepreneurship research extensively examines how gaining social capital, defined as the social resources one gains within one's community, promotes entrepreneurship. This study considers whether a pervasive community dynamic in crime impedes entrepreneurship. Specifically, we show that the two main kinds of crime – people and property – inhibit entrepreneurship.We show the facets of community social capital that mediate the relationship between crime and entrepreneurship. We inform the role of community-based social capital in promoting entrepreneurship (Kwon et al., 2013) by considering how higher crime lowers social capital and in turn entrepreneurship. We show that core facets of relational social capital – trust, voluntary membership in community bodies, support, and cooperation – mediate the relationship between crime and entrepreneurship. Likewise, communities with more robust reserves of social capital are better able to withstand crime and promote entrepreneurship.Examining the link between crime and entrepreneurship allows us to contribute to the literature on entrepreneurship and social capital. We discuss the various ways in which crime diminishes social capital to shape entrepreneurship. In our framework that is predicated on theory on community social capital, crime creates distrust because it causes citizens to be wearier and more suspicious of each other, impeding sharing of ideas and knowledge for ventures. Crime impedes the efficacy and membership of community-based organizations that allow entrepreneurs to network. Crime reduces the support available for founders to start and sustain businesses in focal communities, as individuals seek opportunities and resources outside their communities. Crime diminishes the extent to which people take pride in and identify with their communities, as evidenced by voluntary membership in community organizations. Crime reduces collaboration because it leads to self-protective behaviors, including flight from high-crime communities, that hinder norms of reciprocity. Crime reduces cooperation as criminals are more likely to resort to coercion, as enforced by monitoring and violence, to solve business problems.Findings rely on a comprehensive database of crime rates across Australian postcodes. Crime is typically a localized phenomenon – it affects business outcomes in local communities. We obtain community-level crime rates from each Australian state and territory police force or relevant government agencies and match these data with entrepreneurship rates by postcode. Our primary identification strategy follows Dustmann and Fasani (2016), who estimate the effect of local area crime on mental health in the United Kingdom (UK). This identification strategy removes the effects of residential sorting and correlates crime with time-varying unobserved entrepreneurship determinants if there is no endogenous migration from local crime. The main findings are robust to instrumenting for local area crime to which movers are exposed and for historical abortion rates in the state or territory where the individual lives, as well as a number of other approaches to obtaining causal inference.The article holds considerable practical relevance for policymakers seeking to promote community entrepreneurship. Our study is highly relevant to community leaders and policymakers working to boost local entrepreneurship. Findings strongly suggest that efforts to reduce crime are a primary mechanism to protect social capital within communities and, therefore, entrepreneurship. Policy initiatives dedicated to creating and expanding social ventures would a) boost entrepreneurship and social capital and b) mitigate the detrimental effects of crime on entrepreneurship (Wry and York, 2017).     

Symbiotic Marketing and Trust-Related Issues: Empirical Evidence From an Emerging Economy

ABSTRACT

Adopting a perspective of social capital theory, we study the effect of market orientation on the stability of symbiotic alliances in an emerging economy. Focusing on a subset of the alliances, namely symbiotic marketing alliances, the results reveal that firms’ market orientation has a positive effect on social capital, which, in turn, has a positive effect of the stability of the symbiotic marketing alliances. Moreover, social capital also has a positive effect on the sharing of resources among the partners, which should also influence the stability of the alliance. This report concludes with a discussion of the implications for academic researchers and practitioners.     

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.     

Hindering or enabling structural social capital to enhance buyer performance? The role of relational social capital at two levels in China

Purpose: In its cognitive, relational, and structural forms, social capital has been identi?ed as a powerful strategic tool. However, prior empirical studies focus only on the direct effect of various dimensions of social capital and address relational social capital at either a dyadic level or a network level. Drawing on the social capital theory and social network theory, this study fills the above-mentioned gaps by examining the role of structural and relational social capital on performance through exploring direct and interaction effects simultaneously and revealing the moderating effect of relational social capital at the dyadic and network levels (including business ties and political ties) simultaneously.

Methodology/Approach: Based on data for 393 distributors from China, a moderated regression analysis is used to test the hypotheses.

Findings: The empirical test generally supports the hypotheses and indicates that the value of structural social capital is conditional on both curvilinear and linear moderating effects of relational social capital: the moderating effects of business ties on the structural social capital–buyer performance relationship is inverted U-shaped, while the moderating effects of relational social capital at the dyadic level and political ties on the structural social capital–buyer performance relationship is positive.

Research Implications: This study incorporates all three dimensions of social capital, represents one of the first attempts to examine the interplay between structural and relational social capital in emerging economies, explores relational social capital at the dyadic and network levels simultaneously, and responses to the fact that buyer–supplier relationships (BSRs) are embedded within a larger context of social networks. By addressing these issues, this study sheds new light on the individual and joint impact of various dimensions of social capital and provides new evidence on both the positive and negative aspects of social capital in a single model.

Practical Implications: The results provide important implications for managers in addressing social capital in an emerging economy. In order to improve performance, managers should first encourage and foster frequent, diverse, scarce, and high-quality information exchange and interactions to accumulate structural social capital. Additionally, managers should not only emphasize relational social capital building and development in BSRs, but also pay attention to the cultivation of relational social capital among the business network. They should acknowledge the persistent positive effect of political ties and the potential negative effect of business ties.

Originality/Value/Contribution: First, few studies examine both the individual and synergetic effects of various dimensions of social capital in a single model or explicitly explore relational social capital in a dyadic relationship and deeply consider it at the network level in a single model. This study addresses these issues.     

Relationship Marketing in the New Economy

Abstract

This article aims to put relationship marketing in the context of the New Economy; it is a quest for valid and practical theory. It is preoccupied with the reigning marketing management paradigm and a shift to a relationship marketing paradigm. A systemic view, referred to as total relationship marketing, is presented together with the core values and beliefs of relationship marketing. The article concludes that relationship marketing is fundamentally different from traditional marketing management and that successful implementation requires new mindsets.     

Developing an Inter-Organization Relational Management Perspective

Abstract

Relationship marketing has become a frequently used strategy to increase the efficiency and effectiveness of an organization's marketing efforts. In order to manage relationships effectively over time, the domain (i.e., type of relationship) and the relational linkage (i.e., richness of interaction and communications) must be determined. In this paper, a process for establishing virtual management perspectives is developed illustrating the steps necessary for managing relationships between organizations and individuals within organizations. Taking a proactive approach to the management of relationships appears to be an essential dimension in insuring their success.     

An empirical study of the impact of consumer emotional engagement and affective commitment in firm-hosted virtual communities

ABSTRACT

Emergent perspectives in marketing highlight new opportunities for leveraging social media as a means to build customer–firm relationships through consumer engagement. Drawing from cognitive appraisal theory and aspects of the service dominant logic, this study delineates and empirically tests hypotheses regarding the effects of key components of consumer engagement (cognitive appraisal, affective states, participation) on consumers’ affective commitment, in the context of two service companies where the firms used social media to host virtual communities. The research examines how consumers’ cognitive appraisal of the engagement experience aligned with their online interaction propensity and participation in value-creating activities drive engagement outcomes. The results confirm the need to contextualise, personalise and respond to the consumer’s engagement experience to develop this engagement.     

Intentional social action in virtual communities

There is growing evidence of the increasing participation in, and influence of, virtual communities in digital environments. To help explain this irresistible allure, the individual and social determinants of the member's intentions to participate are investigated. Conceptualizing virtual community participation as intentional social action, we explicate the concept of “we-intentions”, and use the Model of Goal-Directed Behavior to explain members’ we-intentions. Virtual community influences pertaining to compliance, internalization, and social identity are also elaborated on. An empirical study of regular virtual community participants (N = 157) finds that we-intentions to participate are functions of both individual determinants (positive anticipated emotions and desires), and community influences (social identity). Implications for marketing and future research opportunities are discussed.     

The effect of technology management capability on new product development in China’s service-oriented manufacturing firms: a social capital perspective

Abstract

Technology management capability (TMC) and new product development (NPD) are important for China’s service-oriented manufacturers to achieve competitive advantage. In this study, TMC is conceptualized as comprising of four sub-level capabilities: searching, selecting, implementation and learning capabilities. Drawing from the theory of social capital, we hypothesize that social capital plays a role in the relationship between TMC and NPD performance. Our findings indicate that NPD performance and social capital are influenced by all the four sub-capabilities of TMC but the effect of each capability of TMC varies. Selecting capability is more significantly and positively related with NPD performance, while learning capability exerts the most significant positive effect on social capital. Moreover, our empirical findings indicate the partial mediating role of social capital in the process of TMC influencing NPD performance. This study makes a particular contribution to the literature by providing a more complete understanding of how social capital plays a role in the relationship between TMC and NPD performance. In terms of managerial implications, our results indicate that improving TMC is essential in enhancing a service-oriented manufacturing firm’s NPD performance. Managers should also pay particular attention to nurturing social capital as a pathway to realize the true value of TMC.     

Up,up and away: social marketing breaks free

Abstract

The social marketing literature has been dominated by questions about the field’s legitimacy along with the ethical and other implications of its relationship with commercial marketing. In reviewing social marketing’s origins and considering its future, this paper acknowledges then moves beyond these concerns, enabling a focus on the opportunities created for this vibrant field in the current environment. Three thematic areas frame the paper’s discussion: the legitimacy of social marketing as a field in its own right; the broadening and deepening of the field and the consequences for social change; and the strengths and opportunities arising out of social marketing’s relationship with mainstream marketing. The paper reviews social marketing’s origins, before considering how the field might draw on the turbulent environment and the dynamic developments taking place within marketing to shape its future.     

An Explorative Study of Korean Consumer Participation in Virtual Brand Communities in Social Network Sites

ABSTRACT

The importance of virtual brand communities in social network sites has received increasing attention from both academia and industry. In surveying a sample of 333 virtual brand community members in Korean social network sites, the current study provides a baseline understanding of the antecedents and consequences of virtual brand communities. The findings here suggest that members of brand communities have six primary social and psychological motives for engaging in virtual community activities: interpersonal utility, brand loyalty, entertainment seeking, information seeking, incentive seeking, and convenience seeking. Our findings also indicate that members of consumer versus marketer-generated brand communities show both similarities and differences in terms of the extent of community participation and the levels of community commitment, satisfaction, and future intention. Our findings provide useful managerial implications for marketers who want to tap into the huge communication potential of this new marketing communication tool and medium, as they offer insight into the proactive role of consumers in today's marketplace.     

Evolving Relationship Marketing into a Discipline

Abstract

Relationship marketing is considered a paradigm change in both academic and practitioner literature. However, despite its popularity, relationship marketing has not yet evolved into becoming a discipline. The authors propose focus on eight areas to help relationship marketing evolve into a discipline. They compare the successful evolution of consumer behavior, services marketing and marketing strategy with the failure of international marketing, social marketing and business marketing as a discipline.     

Finding critical success factors for virtual community marketing

Previous studies have identified critical success factors related to using virtual communities as a marketing channel. These studies have followed two research trends that connect the virtual community to actual purchasing. One is finding relationships between the operational elements of a virtual community and members’ intent to purchase and the other is finding relationships between characteristics of virtual community members and their intent to purchase. The model for this study reflects both trends. In addition, the model reflects research related to factors of customer satisfaction and the measurement of marketing success in terms of sense of community and loyalty. Conclusions from this research have been verified empirically with survey data collected from 292 virtual community members representing nine profit-oriented virtual communities. This study confirms that operational elements of a virtual community and characteristics of virtual community members affect the success of virtual community marketing. It is also confirmed that perceptions of usefulness, trust, and commitment toward the virtual community are important intervening effects. However, not all factors studied in the model were found to be significant in relationship to successful virtual community marketing. The analysis of the results from this study should be helpful to practitioners who use virtual communities as a marketing channel.     

A marketing perspective on the rise of China: monopoly,politics and value

Abstract

As researchers in the social sciences seek an understanding of the spectacular rise of China, the seemingly counterintuitive stance of an autocratic regime attaining such sustained economic performance challenges multiple analytical frames. The relatively ponderous responses of the United States and Europe to recent global conditions, and the democratic uprisings in Arabic states, further represent a glaring contrast. While the marketing literature is rich in the particulars of specific management issues in the China market, no analysis from the discipline has attempted to provide a broad, distinctly marketing contribution to the China phenomenon. Choice is a fundamental construct underpinning theories of politics, economics and marketing, though it is notably absent from Chinese politics. The changing relationship between markets, business and government reveals a question that is clearly important to marketers, and China is a challenging boundary case for marketing management.     

Social marketing and big social change: personal social marketing insights from a complex system obesity prevention intervention

ABSTRACT

To address ‘wicked problems’ such as obesity, family violence or community safety, we need systems change interventions that reach large numbers, are scalable and can be enriched over time.

Follow the development of a social marketing platform as it became a critical component of Healthy Together Victoria; an internationally recognised, and radically different, approach to driving change for better health. Working beyond the delivery of public education campaigns, social marketing became a key pillar of this powerful movement – one that emboldened governments, business and other partners across sectors and communities – to tackle the rising tide of obesity through leadership, big thinking and joint action.     

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 Contingent Value of Entrepreneurs’ Political Capital: Evidence from China

ABSTRACT

Who benefit from a transitioning economy, entrepreneurs who are politically connected or disconnected? Market transition theory and power conversion theory offer two divergent answers. Our study seeks to contribute to this debate by examining the contingent value of entrepreneurs’ political capital. We draw from social network theories and investigate whether and how entrepreneurs’ social networks influence the relationship between their political capital and social mobility. Using the data on Chinese entrepreneurs, we find that the impact of political capital on entrepreneurs’ social mobility is contingent on their network centrality. Practical implications and suggestions for future research are also discussed.     

The fairyland of Second Life: Virtual social worlds and how to use them

Virtual social worlds, such as the Internet site Second Life, have acquired a high degree of popularity in the popular and business press. In this article we address the increasing importance of virtual social worlds, and discuss how companies can make use of their potential. We first present how virtual social worlds evolved historically, how they fit into the postmodern paradigm of our time, and how they differ from other social media, such as content communities (e.g., YouTube), social networking sites and blogs (e.g., Facebook), collaborative projects (e.g., Wikipedia), and virtual game worlds (e.g., World of Warcraft). We subsequently present how firms can make use of virtual social worlds in the areas of advertising/communication, virtual product sales (v-Commerce), marketing research, human resources, and internal process management. We also highlight the points companies should pay particular attention to in their activities, the 5Cs of success in virtual social worlds, and the future evolutions that we expect to shape this sector over the next 5-10 years: a trend toward standardization and interoperability, improvements in software usability, increasing interconnection between reality and virtual worlds, establishment of law and order, and the transformation of virtual social worlds to business hubs of the future.     

The Impact of Social Marketing on Social Engineering in Economic Restructuring

SUMMARY

Social Marketing is a rapidly growing marketing sub-discipline based on the premise that bringing successful commercial marketing technologies to bear on problems of individual and social welfare can generate positive outcomes. This paper gives an overview of recent developments in Social Marketing in a global context and discusses the relationship of these developments to those in commercial, not-for-profit or third sector and public sector marketing, and public relations. The paper then relates the global context back to developments in Australasian and Asian nations, with particular reference to social engineering during economic restructuring.     

Interact with me on my terms: a four segment Facebook engagement framework for marketers

Abstract

Facebook is used by over 1 billion highly heterogeneous users each month. However, there exists little guidance for marketers when it comes to actionable consumer engagement strategies for this social media platform. The purpose of this article is to profile key segments of Facebook users and build an implementable marketing strategy framework that can help marketers better target their Facebook consumers, and better craft their marketing mix and Facebook campaigns. Based on focus group interviews and a qualitative survey, four distinct types of Facebook users are identified and profiled: attention seekers, devotees, connection seekers and entertainment chasers. Correspondingly, a four-segment marketing strategy framework is proposed to guide content creation and engage consumers in thriving Facebook brand communities.