Social capital and firm performance in transition economies

Hung Doan (), Francesca Masciarelli (), Andrea Prencipe () and Vu Nam ()
Additional contact information
Francesca Masciarelli: LUISS University
Andrea Prencipe: University G.d’Annunzio

Eurasian Business Review, 2023, vol. 13, issue 4, No 2, 780 pages

Abstract: Abstract The study explores how social capital affects the performance of small- and medium-sized enterprises (SMEs) in a transition economy. Social capital is referred to as firm’s social interactions with formal and informal creditors, which is financial social capital, and social interactions with politicians and civil servants, which is political social capital. Using a control function estimation method with longitudinal data from repeated surveys of small- and medium-sized enterprises (SMEs) in Vietnam, we find an inverted U-shaped relationship between social capital and SMEs’ performance, which is measured by gross profit and labor productivity. We further show that there is a positive complementary effect between innovation and social capital in affecting performance of SMEs.

Keywords: Social capital; Small and medium enterprises; Performance; Innovation; Transition economies; Vietnam (search for similar items in EconPapers)
JEL-codes: L14 L25 L26 O32 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40821-022-00227-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurasi:v:13:y:2023:i:4:d:10.1007_s40821-022-00227-y

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40821

DOI: 10.1007/s40821-022-00227-y

Access Statistics for this article

Eurasian Business Review is currently edited by Marco Vivarelli

More articles in Eurasian Business Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().