Social capital and corporate entrepreneurship: the role of absorptive capacity in emerging markets

Abstract

PurposeThis paper studies the role of inter-firm supply chain social capital and intra-firm social capital in enabling Corporate Entrepreneurship (CE), and also investigates the moderating and mediating effect of absorptive capacity.Design/methodology/approachA correlational descriptive survey research is employed for 200 firms; adopting a 13-item Likert scale obtained from Wang and Li (2016) for measuring inter-firm social capital, and an eight item Likert scale for measuring absorptive capacity. This is in addition to a nine item Likert scale obtained from De Clercq et al. (2013) to measure the intra-firm social capital, and a nine item semantic differential scale developed by Covin and Slevin (1989) for measuring the level of corporate entrepreneurship. Statistical analysis packages SPSS V.24 and AMOS V.24 were used.FindingsResults provide evidence that structural supply chain social capital has an effect on corporate entrepreneurship; mediated by potential absorptive capacity. Additionally, the effect of relational supply chain social capital on corporate entrepreneurship is fully mediated by potential absorptive capacity. Furthermore, the effect of cognitive supply chain social capital on corporate entrepreneurship is fully mediated by potential absorptive capacity. On the other hand, results show that both intra-firm social capital and realized absorptive capacity moderate the relationship between potential absorptive capacity and corporate entrepreneurship.Research limitations/implicationsThe convenience sampling technique increases the probability of selection bias. In addition, the research focused on two aspects of intra-firm social capital, namely relational and cognitive dimensions, and overlooked the structural dimension of social capital.Practical implicationsProviding managers with insights about the critical role of developing social capital among supply chain partners to facilitate the transfer and exchange of crucial knowledge necessary for product development and innovation. This is in addition to the need to capitalize on intra-collaborations and cross-functional routines to facilitate CE.Originality/valueThis study provides a required extension to the previous literature, which has not empirically modeled the role of potential absorptive capacity as means by which supply chain social capital dimensions enable CE. Also, the research identifies contingency factors that enable the effect of potential absorptive capacity on CE; namely intra-firm social capital and realized absorptive capacity.

The mediating role of social dynamics in the influence of absorptive capacity and tacit knowledge sharing on project performance

“…Additionally, the study results demonstrate that strong social factors levels increase knowledge absorptive ability in project team members by tacit knowledge sharing; it also confirms the theory of absorptive capabilities where researchers predicted that social factors influence the sharing of tacit knowledge and increase project performance (Fayad and El Ebrashi, 2022). Though sharing information through knowledge-creation mechanisms is advantageous, Mura et al (2013), insisted that social factors are more useful in developing social capital between workers, which can significantly improve the strength and effectiveness of knowledge-sharing practices.…”

“…Absorptive capacity is defined by Fayad and El Ebrashi (2022) as having two components: previous knowledge and degree of activity. Gupta et al.…”

“…Absorptive capacity is defined by Fayad and El Ebrashi (2022) as having two components: previous knowledge and degree of activity. Gupta et al (2022) also reveal that members' abilities are gained through work-related talents, as well as their academic foundation and experience, which may signify the depth of background knowledge already accumulated.…”

Intellectual capital components and entrepreneurial orientation: the mediating role of absorptive capacity

“…As firms accumulate more IC dynamic capabilities and more absorptive capacities, they become more efficient in terms of enhancing their EO (Yaseen et al, 2016). In order to foster entrepreneurship as an essential behavior, firms need to focus on their ACAP to assimilate and apply new knowledge and technology in different business settings (Fayad and El Ebrashi, 2022). Furthermore, substantial recent research indicates significant relationships between ACAP, IC components, innovation and performance.…”

Research on the social capital, knowledge quality and product innovation performance of knowledge-intensive firms in China

“…Globalization and technological progress have provided a series of opportunities and challenges for firms, and an increasing number of firms have realized the importance of product innovation in the context of improving performance and competitive advantages ( Najafi-Tavani et al, 2018 ; Mu et al, 2021 ). The innovation process of firms depends on their ability to collect and use resources from multiple sources, both external and internal ( O’Cass and Sok, 2014 ; La Rocca et al, 2016 ; Khan et al, 2020 ; Salas-Vallina et al, 2020 ; Mazzucchelli et al, 2021 ; Fayad and El Ebrashi, 2022 ). Therefore, some researchers have encouraged firms to construct social ties and strengthen social capital with other firms in social networks ( Motohashi, 2005 ; Molina-Morales and Martínez-Fernández, 2010 ).…”