Dimensions of Social Capital and Innovation Capabilities of Firms The Performance of Information Technology as a Mediator

Mohsin Bashir, Muhammad Waseem Bari and Syed Hassan Raza
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Mohsin Bashir: Assistant Professor, Lyallpur Business School, Government College University, Faisalabad, Punjab, Pakistan.
Muhammad Waseem Bari: Assistant Professor, Lyallpur Business School, Government College University, Faisalabad, Punjab, Pakistan.
Syed Hassan Raza: Chairman, Department of Business Administration, Allama Iqbal Open University, Islamabad, Punjab, Pakistan.

Global Social Sciences Review, 2018, vol. 3, issue 3, 175-192

Abstract: This paper empirically inquire the relation of social capital dimensions (relational social capital, structural social capital, and cognitive social capital), organization innovation capabilities, and the performance of information technology (IT) as a mediator in the said relationships. A total of 263 workers of different management cadres from software SMEs (Zhongguancun Software Park, Beijing, China) were randomly selected. However, 143 respondents submitted the complete response. Thus, the response rate was 54%. For the empirical investigation, the present paper uses Partial Least Squares, Structural Equation Modeling (PLS-SEM) and Importance-Performance Matrix Analysis (IPMA) techniques to analyze the survey data. The direct and indirect relationship between dimensions of social capital and organizational innovation capabilities is significant. However, IT generates a partial mediation effect. IPMA highlights the importance of relational and structural social capital to innovation capabilities, however, IT is indicated as the key driver that trigger the effect of social capital on organization innovation capabilities. Future studies guidelines and limitations are explained at the end of this paper.

Keywords: Social Capital; Innovation Capabilities; Social Exchange Theory; Information Technology; PLS-SEM; IPMA (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:gss:journl:v:3:y:2018:i:3:p:175-192

DOI: 10.31703/gssr.2018(III-III).11

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