The effects of social capital on entrepreneurial resilience of SME from China: A moderated mediation model of entrepreneurial passion and Confucian traditional golden-mean thinking

Abstract

Small and medium-sized startups play a crucial role in a country's sustainable development. SMEs are at an early development stage, which means weaker institutional norms and successful paradigms, tending to suffer from exceptionally high failure rates because of many constraints, including a lack of resources and credit to access the core information. The higher the environmental uncertainty, the more likely that new start-ups rely on all kinds of social links for acquiring resources. As a critical ability to withstand and overcome obstacles, entrepreneurial resilience is an essential personal characteristic to ensure the sustainability of new ventures. The purpose of this study is to investigate the internal mechanism through which SME entrepreneurs' social capital affects entrepreneurial resilience. To reveal the internal mechanism, we propose a moderated and mediation model. Using survey data from SEM entrepreneurs in China, hierarchical regression analysis and bootstrapping model are adapted to test and verify mediation and moderation effects. The results show that social capital indeed positively influences entrepreneurial resilience directly and partly through the mediating effect of harmonious entrepreneurial passion and obsessive entrepreneurial passion. Moreover, findings suggest golden-mean thinking negatively moderates the relationship between obsessive entrepreneurial passion and entrepreneurial resilience yet positively moderates the relationship between social capital and entrepreneurial resilience. Based on these findings, we conclude that entrepreneurial resilience may be achieved more effectively through the complex internal process of social capital, entrepreneurial passion, and golden-mean thinking. Finally, the study proposes the theoretical and practical implications and suggestions for follow-up research.

Business strategy and environmental information disclosure from a Confucian cultural perspective: Evidence from China

“…Finally, our study focuses on the joint moderating effects of environmental uncertainty, legal supervision, and Confucian culture. In contrast, the previous literature has only focused on a single market environment (Shan & Tian, 2022) or legal environment (Allen et al, 2005). We consider the current environmental situation where formal and informal institutions are intertwined, and the market environment is complex.…”

Dynamic of Product Innovation, Community Involvement, and Regulatory Policy: Case Study of MSME Entrepreneurship in Indonesia

“…A crucial mechanism identified is the establishment of trust and social capital within the community. Entrepreneurs who actively participate in their local communities are more likely to cultivate strong relationships, trust, and social networks (Shan & Tian, 2022). These factors, in turn, create a favorable environment for business development and sustainability.…”

Effects of Social Capital, Financial Access, Innovation, Socioeconomic Status and Market Competition on the Growth of Small and Medium Enterprises In West Java Province

“…Studies have shown that social capital positively affects SMEs' financing as it facilitates access to finance, marketing, production, and information [14]. Social capital also affects entrepreneurial resilience by inspiring a harmonious entrepreneurial passion [15]. Financial access is another critical factor affecting SME growth.…”

“…Financial access is another critical factor affecting SME growth. Lack of seed capital raised is one of the external factors attributed to SME failures [15]. Social capital can facilitate access to external financing sources for SMEs [14].…”