Abstract
Although literature suggests that social capital directly and indirectly influences the performance of entrepreneurial firms, there is less evidence on how entrepreneurial firms can acquire and maintain social capital in China. Applying the theory of cooperation and competition, this paper proposes that developing cooperative, instead of competitive and independent, goals with network ties, which are defined as external organizations such as buyers and suppliers, can help entrepreneurial firms in China obtain social capital in terms of trust and reciprocity that in turn enhances their intangible resources of brand reputation and market access. By surveying 120 entrepreneurial firms in Shanghai, China and employing Structural Equation modeling, the findings supported most hypotheses except reciprocity was found to negatively affect brand reputation, supporting arguments that social capital has both negative and positive effects. Results were interpreting as suggesting that network firms develop cooperative interdependence and trust but discourage rigid, self-sacrificing reciprocity so that they exchange resources so that each performs effectively to develop their business.
Original language | English |
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Publication status | Published - 8 Aug 2007 |
Event | Academy of Management 2007 Annual Meeting: Doing Well by Doing Good - , United States Duration: 3 Aug 2007 → 8 Aug 2007 |
Conference
Conference | Academy of Management 2007 Annual Meeting: Doing Well by Doing Good |
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Abbreviated title | AOM 2007 |
Country/Territory | United States |
Period | 3/08/07 → 8/08/07 |
Keywords
- goal interdependence
- social capital
- intangible resources