Effects of social capital on operational performance: impacts of servitisation

Abstract

Studies on servitisation have largely overlooked the roles of social capital with suppliers and knowledge management. We propose a moderated mediation model to investigate the impacts of servitisation on the mechanisms through which social capital with suppliers improves operational performance. The hypotheses are empirically tested using structural equation modelling and data collected from 276 manufacturing firms in China. The results show that social capital improves operational performance both directly and indirectly through knowledge management, and the relationships are influenced by servitisation. In particular, social capital improves operational performance directly and indirectly through knowledge combination in servitised firms, whereas social capital only improves operational performance indirectly through knowledge acquisition in traditional manufacturers. The findings contribute to the literature by revealing that the effects of social capital with suppliers on operational performance are partially mediated by knowledge acquisition and knowledge combination and the mediation effects are moderated by servitisation, and by providing insights into how to design purchasing and production systems to profit from servitisation

Network positioning and risk perception in servitization: evidence from the UK road transport industry

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Service providers and firm performance: investigating the non-linear effect of dependence

“…However, the existing research does not offer detailed insights into the characteristics of inter-firm relations with external service providers and their outcomes for the focal manufacturer. One reason for this is that contributions that have hitherto incorporated a multi-actor perspective of service provision predominantly collapse and Lakemond, 2006;Hakanen and Jakkola, 2012;Kohtamäki et al, 2013;Zhang et al, 2017).…”

Impacts of intellectual capital on process innovation and mass customisation capability: direct and mediating effects

“…The knowledge embedded in the mind of employees enables them not only to perform their jobs but also to absorb and create new knowledge . Employees' knowledge in a specific domain and skills and expertise in their respective jobs allow them to adjust current products and processes based on changes in customer preferences and market environments (Lee 2011;Zhang, Guo, and Zhao 2016). Multi-skilled employees with generalized experiences can develop new knowledge by synthesising diversified knowledge domains, leading to new products and processes (Hsu and Wang 2012).…”

“…The conversations and open discussion among employees help them recognise and access each other's personal knowledge and, hence, can improve the quality and quantity of information flows within a manufacturer (Adler and Kwon 2002). Social relationships motivate employees to articulate knowledge and share experiences (Nonaka and Takeuchi 1995;Zhang, Guo, and Zhao 2016).…”

“…Cooperative relationships among employees also play an important role in facilitating the absorption of external knowledge (Nahapiet and Ghoshal 1998). The knowledge can be used to align a manufacturer's operations with customers' new requirements, enhancing MC capability (Wang, Wang, and Zhao 2015;Zhang, Guo and Zhao 2016). Therefore, we propose the following hypotheses.…”