How Risk Managers’ Psychological and Social Capital Promotes the Development of Risk-Management Capabilities

Abstract

The purpose of this study is to investigate the roles of risk managers’ psychological and social capital in risk-management capabilities (technical, business processes, and external resources) and the relationship between risk-management capabilities and management performance. This study treated organizational culture as a moderating variable. The research subjects (n = 1000) included top managers, general managers, and managers in various industries. This study found that risk managers’ positive psychological and social capital play important roles in corporate risk-management capabilities. The investigation of the moderating effect of organizational culture also provides important guidelines for future studies. This study found that components of psychological capital (e.g., hope, resilience, optimism, and self-efficacy) had a positive effect on substitute-risk-management capabilities (e.g., technology, business, and external management). Moreover, components of social capital (e.g., managerial tie utilization, trust, and solidarity) had a positive effect on substitute-risk-management capabilities (e.g., technology, business, and external management). The social and psychological capital of a company’s top management and managers are essential elements for strengthening the company’s capabilities for business and risk management. This study also found that the strength of the moderating effects on the relationship between psychological and social capital and risk-management capabilities differs according to the organizational culture. The implications of the study and limitations are discussed.

Supplier performance in the public healthcare: internal social capital, logistics capabilities and supply chain risk management capabilities as antecedents in a developing economy

“…However, the study results did not yield support for H3 since the positive relationship between internal social capital and SCRM capabilities was non-significant. These findings contradict previous studies such as Gligor and Holcomb (2012), Polyviou et al (2019) and Cui et al (2020), which emphasise the positive role of social capital in building SCRM capabilities. This can be explained by the supportive results for H7 of the mediating role of logistics capabilities, whereby internal social capital does not directly influence SCRM capabilities but it can also be utilised in building logistics capabilities, which can then enhance supply chain resilience and robustness.…”

“…Pinho (2011) added that relational capital provides access to novel sources of information necessary to build dynamic capabilities to cope with turbulent and unpredictable environment. Furthermore, Cui et al (2020) confirmed that risk managers' social capital play important roles in building corporate risk management capabilities. Similarly, Gao et al (2013) observed that cognitive capital is the most important social capital facet for building risk management capabilities compared to structural and relational capital.…”

SMEs’ International Strategic Groups and Top Managers’ Psychological Characteristics

“…Social capital is a relevant concept to firms' internationalization (Jones and Coviello 2005), and embodies the resources embedded in the network of relationships (Nahapiet and Ghoshal 1998). Taking into account some components of this concept, namely, managerial tie utilization, trust, and solidarity (e.g., Cui et al 2020), for instance, we suggest the relevant role that emotional intelligence and cultural intelligence may have in managers' interpersonal contacts and in building trust and solidarity.…”

Social capital of the agricultural sphere: theoretical concept of evaluation of formation and functioning

“…Cui (2020), C.-H. Jin (2020) та J.-Y. Lee (2020) визначають місце соціального капіталу в управлінні корпоративними ризиками [21]. При цьому Н. Г. Діденко досліджує роль соціального капіталу у вирішенні управлінських проблем, а також процеси формування соціального капіталу в соціальних мережах [6]; Т. В. Боцян та Л. В. Зварич визначають організаційно-економічні особливості соціального капіталу в індустрії гостинності, що дозволили б відображати його в обліку [1]; О. Г. Яворська представляє авторську модель соціального капіталу підприємств сфери послуг, зокрема під час формування та розвитку мережевої форми організації в господарській практиці вітчизняного туристичного бізнесу [15].…”