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Does social capital improve labour productivity in Small and Medium Enterprises?

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  • Fabio Sabatini

Abstract

This paper reports the findings of an empirical study on the relationship between social capital and labour productivity in Small and Medium Enterprises (SMEs) in Italy. By means of Structural Equations Models (SEMs), the analysis investigates the effect of different aspects of the multifaceted concept of social capital. Bonding social capital of strong family ties and bridging social capital shaped by informal ties connecting friends and acquaintances are proved to exert a negative effect on labour productivity, economic performance and human development. On the contrary, linking social capital of voluntary organisations positively influences the stated outcomes.

Suggested Citation

  • Fabio Sabatini, 2008. "Does social capital improve labour productivity in Small and Medium Enterprises?," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 9(5), pages 454-480.
    • Handle: RePEc:ids:ijmdma:v:9:y:2008:i:5:p:454-480
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    Cited by:

    1. Christoph Kowalski & Oliver Ommen & Elke Driller & Nicole Ernstmann & Markus A Wirtz & Thorsten Köhler & Holger Pfaff, 2010. "Burnout in nurses – the relationship between social capital in hospitals and emotional exhaustion," Journal of Clinical Nursing, John Wiley & Sons, vol. 19(11‐12), pages 1654-1663, June.
    2. Soumyananda Dinda, 2014. "Inclusive growth through creation of human and social capital," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(10), pages 878-895, October.
    3. Isabel Neira Gómez & Marta Portela, 2011. "Determinantes del capital social," Investigaciones de Economía de la Educación volume 6, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 60, pages 986-1001, Asociación de Economía de la Educación.
    4. Romano, Richard E. & Tampieri, Alessandro, 2016. "Arts vs engineering: Choosing consumption of and investment in education," Research in Economics, Elsevier, vol. 70(3), pages 493-510.
    5. Sabatini, Fabio, 2009. "Does social capital create trust? Evidence from a community of entrepreneurs," AICCON Working Papers 58-2009, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    6. Soumyananda Dinda, 2014. "A theoretical basis for green growth," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 8(2), pages 177-189.
    7. Lidia Galano & Lucia Marchegiani, 2013. "Online business social network e strumenti per la gestione delle relazioni di business nelle PMI," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(2), pages 59-82.
    8. Roberto Ganau & Andrés Rodríguez‐Pose, 2023. "Firm‐level productivity growth returns of social capital: Evidence from Western Europe," Journal of Regional Science, Wiley Blackwell, vol. 63(3), pages 529-551, June.
    9. Yayla, Serdar & Yeniyurt, Sengun & Uslay, Can & Cavusgil, Erin, 2018. "The role of market orientation, relational capital, and internationalization speed in foreign market exit and re-entry decisions under turbulent conditions," International Business Review, Elsevier, vol. 27(6), pages 1105-1115.
    10. Urszula Markowska-Przybyła, 2020. "Does Social Capital Matter for Total Factor Productivity? Exploratory Evidence from Poland," Sustainability, MDPI, vol. 12(23), pages 1-25, November.
    11. F. Pericoli & E. Pierucci & L. Ventura, 2015. "The impact of social capital on consumption insurance and income volatility in the UK: evidence from the British Household Panel Survey," Review of Economics of the Household, Springer, vol. 13(2), pages 269-295, June.
    12. Dinda, Soumyananda, 2016. "Interrelationships between Social and human Capital, and Economic Growth," MPRA Paper 89646, University Library of Munich, Germany, revised 2017.
    13. Rodríguez-Pose, Andrés & Ganau, Roberto, 2023. "Firm-level productivity growth returns of social capital: Evidence from Western Europe," CEPR Discussion Papers 17979, C.E.P.R. Discussion Papers.
    14. Finocchiaro Castro ,Massimo & Guccio, Calogero, 2023. "New wine in old bottle: Exploring the Corruption-inefficiency nexus using endogenous stochastic frontier approach," EconStor Preprints 275730, ZBW - Leibniz Information Centre for Economics.
    15. Giacomo Degli Antoni, 2013. "Workers' propensity to cooperate with colleagues and the general population: a comparison based on a field experiment," Econometica Working Papers wp50, Econometica.
    16. Casey Ichniowski & Kathryn L. Shaw, 2009. "Connective Capital as Social Capital: The Value of Problem-Solving Networks for Team Players in Firms," NBER Working Papers 15619, National Bureau of Economic Research, Inc.
    17. Anneli Kaasa, 2018. "Intangible factors and productivity: Evidence from Europe at the regional level," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 300-325, April.
    18. Dinda, Soumyananda, 2012. "Social Capital Formation Ensuring Inclusive Growth: A Development Mechanics for Backward Region," MPRA Paper 66261, University Library of Munich, Germany, revised 12 Dec 2012.
    19. Giacomo Degli Antoni & Fabio Sabatini, 2017. "Social cooperatives, social welfare associations and social networks," Review of Social Economy, Taylor & Francis Journals, vol. 75(2), pages 212-230, April.
    20. Dinda, Soumyananda, 2009. "A Simple Complementary Development Mechanics for African Countries," MPRA Paper 55307, University Library of Munich, Germany, revised Apr 2014.
    21. Hüseyin Mert Arslan & Hasan Engin Duran, 2021. "Social capital and regional development in Turkey," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 878-920, June.
    22. Giacomo Degli Antoni, 2016. "Capitale sociale e cooperative sociali: considerazioni da una indagine sul campo," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 2016(105), pages 151-163.

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