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Social capital in Brazilian small-firm networks: the influence on business performance

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  • Douglas Wegner
  • Clara Isabel Koetz
  • Eduardo De Oliveira Wilk

Abstract

This article investigates the influence of social capital on the business performance of firms participating in Brazilian small-firm networks. The study was based on a survey of 213 firms from 34 different small-firm networks. Four hypotheses were formulated and tested through multiple linear statistical regressions. We analysed the effects of the entrepreneurs' social capital in the following three dimensions: structural, relational and cognitive. In addition, we investigated how the centrality of the entrepreneur in the business network is related to its social capital. The results demonstrate the significant effects of the structural and relational dimensions of social capital on business performance and also show that entrepreneurs that occupy central positions in small-firm networks obtain benefits as social capital develops. This study contributes to the literature by showing that network managers can stimulate the development of social capital among members and positively influence the business performance of participating firms.

Suggested Citation

  • Douglas Wegner & Clara Isabel Koetz & Eduardo De Oliveira Wilk, 2013. "Social capital in Brazilian small-firm networks: the influence on business performance," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 20(4), pages 446-461.
    • Handle: RePEc:ids:ijesbu:v:20:y:2013:i:4:p:446-461
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    Cited by:

    1. Santini, Mateus Augusto Fassina & Faccin, Kadígia & Balestrin, Alsones & Volkmer Martins, Bibiana, 2021. "How the relational structure of universities influences research and development results," Journal of Business Research, Elsevier, vol. 125(C), pages 155-163.
    2. Douglas Wegner & Greici Sarturi & Leander Luiz Klein, 2022. "The governance of strategic networks: how do different configurations influence the performance of member firms?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 1063-1087, September.

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