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The Effect of Cognitive and Relational Social Capital on Structural Social Capital and Micro-Enterprise Performance

Author

Listed:
  • Rajennd A/L Muniady
  • Abdullah Al Mamun
  • Mohd. Rosli Mohamad
  • P. Yukthamarani Permarupan
  • Noor Raihani Binti Zainol

Abstract

Social capital and its dimensions are highly interrelated, and the outcome of social capital provides entrepreneurs with resources and knowledge that are not available in the first place. The objective of this study is to examine the effect of relational and cognitive social capital on structural social capital and the effect of structural social capital on the performance of micro-enterprises owned and managed by women in Peninsular Malaysia. This study uses a cross-sectional approach, and quantitative data are collected through structured interviews. It was found that cognitive social capital has a significant positive effect on structural social capital, and structural social capital has a significant positive effect on micro-enterprise performance. It was found that relational social capital has a positive but insignificant effect on structural social capital. Therefore, women entrepreneurs should emphasize on making the communication process easier and on ensuring that their business values, norms, interpretation, and meaning are shared and communicated to relevant parties to improve network ties and to build a dense network, which is essential in providing access to resources and knowledge. This, in return, is expected to improve the micro-enterprise performance in Malaysia.

Suggested Citation

  • Rajennd A/L Muniady & Abdullah Al Mamun & Mohd. Rosli Mohamad & P. Yukthamarani Permarupan & Noor Raihani Binti Zainol, 2015. "The Effect of Cognitive and Relational Social Capital on Structural Social Capital and Micro-Enterprise Performance," SAGE Open, , vol. 5(4), pages 21582440156, October.
    • Handle: RePEc:sae:sagope:v:5:y:2015:i:4:p:2158244015611187
    DOI: 10.1177/2158244015611187
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    3. Gioacchino Fazio & Francesca Giambona & Erasmo Vassallo & Elli Vassiliadis, 2018. "A Measure of Trust: The Italian Regional Divide in a Latent Class Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(1), pages 209-242, November.
    4. Tae-Hwan Yoon & Saerom Wang, 2023. "How Important Is Stakeholder Collaboration in the MICE Industry: Antecedents and Outcomes of Supply Chain Integration," Sustainability, MDPI, vol. 15(20), pages 1-19, October.
    5. Christopher L. Atkinson & Charles Penrod, 2022. "Empowerment or Limitation? A Critical Exploration of American State Women-Owned Business Programs," Public Organization Review, Springer, vol. 22(2), pages 367-385, June.
    6. Debicki, Bart J. & Ramírez-Solís, Edgar Rogelio & Baños-Monroy, Verónica Ilián & Gutiérrez-Patrón, Lilia Magali, 2020. "The impact of strategic focus on relational capital: A comparative study of family and non-family firms," Journal of Business Research, Elsevier, vol. 119(C), pages 585-598.
    7. Charles Dwumfour Osei & Jincai Zhuang, 2020. "Rural Poverty Alleviation Strategies and Social Capital Link: The Mediation Role of Women Entrepreneurship and Social Innovation," SAGE Open, , vol. 10(2), pages 21582440209, May.
    8. Islam, Md. Mazharul & Habes, Essam M. & Alam, Md. Mahmudul, 2018. "The usage and social capital of mobile phones and their effect on the performance of microenterprise: An empirical study," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 156-164.
    9. Fadhoilus Shofi & Siti Aisjah & Nanang Suryadi, 2022. "The impacts of social capital and financial literacy on business performance with financial access SMEs Batik Pamekasan Regency as mediation," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(8), pages 213-220, November.
    10. Kaberia S. Kanini & Stephen M. A. Muathe, 2021. "Nexus between Social Capital and Firm Performance: A Critical Literature Review and Research Agenda," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(8), pages 1-70, July.

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