Effects of People Equity and Entrepreneurial Orientation on Firm Performance: The Mediation Role of Social Capital

Shabeeb Ahmad Gill (), Amber Raza (), Kiran Farooq (), Mohyi Aldin Yaqob Abu Alhoul (), Ali Saleh Alshebami () and Salem Handhal Marri ()
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Shabeeb Ahmad Gill: NFC Institute of Engineering & Fertilizer Research
Amber Raza: NUST Business School
Kiran Farooq: Dow University of Health Sciences
Mohyi Aldin Yaqob Abu Alhoul: Ajloun National University
Ali Saleh Alshebami: Applied College, King Faisal University
Salem Handhal Marri: Applied College, King Faisal University

Journal of the Knowledge Economy, 2024, vol. 15, issue 4, No 142, 19438 pages

Abstract: Abstract This research paper aimed to investigate social capital’s mediation role between entrepreneurial orientation and people equity with firm performance through structural equation modeling. This study adopted the optic of resource-based view theory to understand the implicit mechanism of the phenomenon. The research philosophy of this study was modernist and positivist. The quantitative technique tests the proposed hypotheses by applying structural equation modeling. The sample of 400 respondents has been analyzed for empirical support—the results of this study demonstrated that the data supported all the relationships well. The convergent and discriminant validity results achieved the threshold and established the instrument construct validity. The reliability attained the desired value of Cronbach’s alpha. The social capital fully meditated in both relationships, first between entrepreneurial orientation and firm performance and then between people equity and firm performance. The garment sector firms could intensify their working performance by implementing this study results, and it is elementary to adopt the people equity theory to enhance it. The managers must include entrepreneurial orientation as the strategy ingredient while formulating policies and strategies.

Keywords: People equity; Entrepreneurial orientation; Social capital; Firm performance; Garment sector; Resource-based view (RBV) theory (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-024-01842-y

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