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Sustaining small businesses in the United States in times of recession

Author

Listed:
  • Sameer Prasad
  • Jasmine Tata
  • Xuguang Guo

Abstract

Purpose - The purpose of this research is to examine how social capital derived through supply chain networks can help small businesses survive in times of a recession. Design/methodology/approach - A theoretical framework with the respective propositions is developed, based upon an extensive literature review and a synthesis of evidence from the recent recession in the USA. Findings - Small businesses need to invest in creating structural, relational and social capital prior to a recession in order to protect themselves from the additional uncertainty. Small businesses can develop social capital relatively easily and inexpensively through their supply chains. Originality/value - This is the first study that directly investigates relationships among small businesses, social capital, supply chain, and recession. The findings should have a broad effect for countless communities throughout the USA as they depend on small businesses to be drivers of employment and state and local taxes.

Suggested Citation

  • Sameer Prasad & Jasmine Tata & Xuguang Guo, 2012. "Sustaining small businesses in the United States in times of recession," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 9(1), pages 8-28, May.
    • Handle: RePEc:eme:jamrpp:v:9:y:2012:i:1:p:8-28
    DOI: 10.1108/09727981211225626
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