Social Competence in Small Firms—Fostering Workplace Learning and Performance

Abstract

While it is widely accepted that social networks are key to small-firm success, detailed studies on the specific contribution of owner-managers' social competence to learning and performance are scarce. In this article, the importance of owner-managers' social competence was explored in a specific, innovative small-firm sector in the Netherlands: the agri-food sector. This was done by means of a qualitative ( n = 13) and quantitative ( n = 556) study. In the qualitative study, the two social competence domains most frequently cited and employed in entrepreneurial workplace learning practices were a social learning orientation and the ability to interact with strategic social partners. The quantitative study illustrated that social competence, overall, influences small-firm performance significantly. However, the relationships between social competence and small-firm performance seem to depend on the specific strategies that owner-managers pursue. In particular, this research supports the idea of social competence being an important driver of success for specific smallfirm strategies and for the ongoing development of existing and new capabilities. As such, it underlines the importance of the capability-driven approach to HRD in the small-firm context. This, in turn, has implications for small-firm support programs.

The owner-manager’s role as a facilitator of informal learning in small businesses

“…Personal learning orientation has been defined as "a concern for, and dedication to, developing one's competence" (Gong, Huang and Farh 2009, 765) and "ability, personality, and interests related to learning and development activities in the workplace" (Choi and Jacobs 2011, 242). Owner-managers who espouse a learning-orientation engage in practices that support workplace learning, such encouraging employees to challenge the status quo without fear of retaliation or retribution (Lans, Verhees and Verstegen 2016).…”

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“…As such social and communication skills are important drivers of successful social networking relationships. Some scholars are in consensus that social competency leads to improved business performance (Lans et al, 2016;Meng & Elliot, 2008;Baron & Markman, 2000). The growing use of social media and Internet may challenge owner-managers if they lack the know-how, not only to network with contacts but to market their products and services.…”

“…Social competency is suggested to be important in social networking and ultimately the performance of small hotels. Currently training and development of entrepreneurs emphasizes on reducing skills gap (Lans et al, 2016), however, less emphasis is placed on soft skills such as social competencies, relationship building skills and negotiation skills. Since social networking is viewed as an entrepreneurial tool (Hoang & Antoncic, 2003), small accommodation ownermanagers would benefit from training that create and improve on their social competencies and related skills.…”

Human Resource Development Quarterly and human resource development: Past, present, and future

“…Each year, as a feature of the Richard A. Swanson award process, our Editorial Board is invited to nominate a “top paper” for consideration for this prestigious award. This process has identified excellence across a range of HRD topics and methods: Lans, Verhees, and Verstegen (), Social competence in small firms—Fostering workplace learning and performance (Mixed Methods); Alagaraja, Egan, and Woodman (), Towards an understanding of HRD lean strategy linkages: A multicase study of four U.S. based firms (Qualitative); and Hutchins, Penney, and Sublett (2018), What imposters risk at work: Exploring imposter phenomenon, stress coping, and job outcomes (Quantitative).…”