Social Capital and Competitiveness of Medium-Sized Enterprises in Emerging Economies: Exploring the Roles of Work Environment and Stress Factors in Peru

This study investigates how social capital relates to the competitiveness of medium-sized enterprises (MSEs) in Peru, and whether this relationship is moderated by the work environment and workplace stress. In emerging economies, enterprise competitiveness is often constrained by organisational, psychological, and structural challenges. In business, social capital, defined as networks, trust, and shared norms, is crucial for fostering cooperation, creativity, and knowledge sharing. Despite its acknowledged importance, empirical evidence on how social capital interacts with workplace conditions and stress in Latin American enterprises remains limited. Using a mixed-methods approach, data were collected from 150 MSEs in Peru through structured surveys and semi-structured interviews with managers and employees. The quantitative analysis assessed the direct impact of social capital on competitiveness, while the qualitative component explored the role of workplace dynamics and coping mechanisms. The results indicate that higher levels of social capital are positively associated with competitiveness, particularly in supportive and collaborative work environments. Conversely, high levels of stress weaken this relationship by reducing cooperation, motivation, and resourcefulness. These findings demonstrate how social and psychological factors jointly shape firm performance in emerging market contexts. The study provides practical guidance for managers and policymakers seeking to enhance the long-term competitiveness of MSEs by strengthening trust-based networks, fostering a positive organisational culture, and implementing effective stress management practices.