Minority Business Networks as Sources of Social Capital for Minority Firms

Blount, Ian; Smith, Delmonize A.; Hill, James W.

doi:10.1142/s1084946713500192

Cited by 11 publications

(5 citation statements)

References 36 publications

(27 reference statements)

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“…The most salient themes are relational in nature (Kwon & Suh, 2005). Although relational themes have been exhaustively studied in the supply chain management (SCM) literature as it relates to White‐owned firms (Nyaga, Whipple, & Lynch, 2010; Peck & Jüttner, 2000; Prajogo & Olhager, 2012), there is a paucity of research on EMBs, especially those that have moved beyond the start‐up phase (Blount, Smith, & Hill, 2013). Most prior research has focused on the deficiencies of nascent EMBs such as their lack of scale (Shelton, 2005), focus on commodity‐type products (Bates, 2001; Lowrey, 2007; Robb, 2002), founders' lack of education (Kollinger & Minniti, 2006), and firm and founder lack of capital (Coleman, 2004; Rasheed, 2004; Rhodes & Butler, 2004).…”

Section: Introductionmentioning

confidence: 99%

How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses

Blount¹,

2020

J Supply Chain Manag

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Using data collected from 277 buyers employed at large purchasing organizations (LPOs) in the U.S. and U.K., this study investigates factors that might influence their willingness to procure goods and services from ethnic minority businesses (EMBs). The social capital literature is used to develop hypotheses concerning the cognitive, structural, and relational dimensions that may play roles in decisions to buy from minority firms. Subsequently, modern discrimination theory is employed to provide inductive insights into how buyers' attitudes toward supplier diversity mediate the effects of social capital on their procurement activities with EMBs. The results of multiple regression analysis suggest that in both the U.S. and U.K., positive social capital as perceived by the buyers has a direct, significant relationship with their expenditures with EMBs. The results also reveal that in both countries, buyers' attitudes toward supplier diversity mediate the relationship. Interestingly, although the U.S. originated the concept of supplier diversity, our research uncovers that U.K. LPO buyers have greater expenditures with their EMBs. Based on these findings, this research illustrates how strategic corporate social responsibility initiatives set forth by LPOs may be impacted by their buyers' social relationships with EMBs and their attitudes toward supplier diversity.

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Section: Introductionmentioning

confidence: 99%

How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses

Blount¹,

2020

J Supply Chain Manag

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“…Social capital ‘… functions as an intermediary between the webs of relationship and the recognition of opportunities, financing of ventures, innovative discoveries, or new market prospect’ (Gedajlovic et al, 2013: 458). Developing extensive social capital is often problematic for minority entrepreneurs in that they place greater trust in, and preference for, co-ethnic over inter-group networks (Blount et al, 2013). Minority entrepreneurs unwilling or unable to network successfully within white-dominated industry groups and segments may find themselves locked out of valuable opportunities (Shelton, 2010) and may have fewer opportunities for venture recognition (Singh and Gibbs, 2013).…”

Section: Theoretical Framework: Trustmentioning

confidence: 99%

“…Whilst acknowledging the significant difficulties faced by ethnic minorities on a global basis, we focus on primarily African American entrepreneurs and present findings investigating the structural interrelationships between ID, internal and external social capital and the willingness to borrow from banks and family or friends on firm performance. We frame level of trust using four important theorical constructs these include: general trust theory, ID, network trust and institutional trust (Blount et al, 2013; Delhey et al, 2011; Sulkowska and Kryvych, 2019; Zaheer et al, 1998). Our findings contribute to the literature in a number of ways.…”

Section: Introductionmentioning

confidence: 99%

The impact of trust on social and financial capital acquisition: A resource integration perspective in minority-owned entrepreneurial organisations

Pegram¹,

Clarke

Peltier

et al. 2022

International Small Business Journal: Researching Entrepreneurs

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Although effective resource integration is a critical requisite for entrepreneurial success, the literature suggests there are crucial gaps for minority entrepreneurs. We examine how interracial distrust (ID), an indicator of the extent to which minority entrepreneurs distrust other races, is related to internal and social capital. We examine the relationships of such capitals on the willingness to borrow from banks and friends, and explore the link with firm performance. Using a sample of 276 primarily African American entrepreneurs, we find support for most of our hypotheses. We find that ID is negatively associated with external social capital and a willingness to borrow from banks. Surprisingly, we found that ID had a negative effect on internal social capital and a willingness to borrow from friends. We also found that internal and external social capital was positively related to firm performance. We discuss the implications of some of these surprising research findings as well as the policy implications.

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“…To date, most MBE research has focused on how to assist nascent minority entrepreneurs and small-sized MBEs like those previously mentioned (by revenue or number of employees) to overcome the disparities by means of education (Kollinger & Minniti, 2006), access to capital (Rhodes & Butler, 2004), and improving their networks (Sonfield, 2016). However, there is minimal research on MBEs that have moved beyond the aforementioned barriers to growth to become vetted, qualified, and approved suppliers to LPOs (Blount et al, 2013; Shelton & Minniti, 2018). To external viewers, their ability to move beyond the basic pitfalls and challenges of entrepreneurship to service LPOs makes them appear content and successful.…”

mentioning

confidence: 99%

How Do Large Purchasing Organizations Treat Their Diverse Suppliers? Minority Business Enterprise CEOs’ Perception of Corporate Commitment to Supplier Diversity

Blount¹

2020

Business & Society

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Supplier diversity programs were created in the United States nearly 50 years ago to encourage private sector companies to provide business opportunities to underutilized minority business enterprises. In order to assess the experiences that minority business enterprise CEOs have with large purchasing organizations and their perceptions of justice and commitment of large purchasing organizations to the buyer–supplier relationship (BSR), this study utilizes survey data collected from 206 minority business enterprise CEOs who supply large purchasing organizations that espouse a strong commitment to supplier diversity. The theoretical framework of organizational justice is utilized to establish testable hypotheses. The results from hierarchical linear regression show minority business enterprise CEOs’ perception of large purchasing organizations’ commitment to the BSR is positively related to the distributive and informational dimensions of organizational justice. Surprisingly, the procedural dimension was found to have a significantly negative relationship. This research also found a significant, negative relationship between minority firm CEOs’ perception of distributive and informational justice and their perceptions of unethical behavior by large purchasing organizations.

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Minority Business Networks as Sources of Social Capital for Minority Firms

Cited by 11 publications

References 36 publications

How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses

How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses

The impact of trust on social and financial capital acquisition: A resource integration perspective in minority-owned entrepreneurial organisations

How Do Large Purchasing Organizations Treat Their Diverse Suppliers? Minority Business Enterprise CEOs’ Perception of Corporate Commitment to Supplier Diversity

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