IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i19p11858-d920454.html
   My bibliography  Save this article

Exploring the Mutual Nexus of Social Capital, Social Innovations and Organizational Performance

Author

Listed:
  • Shuwang Zhang

    (School of Public Administration, South China University of Technology, Guangzhou 510641, China)

  • Ghulam Rasool Madni

    (Department of Economics, Division of Management and Administrative Sciences, University of Education, Lahore 54770, Pakistan)

  • Iftikhar Yasin

    (Department of Economics, The University of Lahore, Lahore 40100, Pakistan)

Abstract

The ability of self-reconstruction is essential to the survival of social organizations. To meet the social challenges, these organizations must enhance their creative and innovative processes. Although an extensive literature describes the impact of social capital on innovations, research on how social and organizational innovations affect organizational performance and social capital is very slim. This paper makes an addition to the literature by investigating the impact of organizational and social innovations in explaining the relationship of social capital and organizational performance. Confirmatory factor analysis, exploratory factor analysis, and structural equation modelling are used on the data gained from social organizations in China. It is found that social and organizational innovations affect the organizational performance in positive way while social capital has a vital role in this relationship by improving mutual cooperation, interaction and trust. The mediating role of social and organizational innovations in the relationship of social capital and organizational performance is formalized through structural equation modeling. The empirical findings reveal that organizational and social innovations have mediating role in relationship of organizational performance and social capital. The empirical results do not support the direct relationship between organizational performance and social capital or between innovations and organizational performance. It is also found that social and organizational innovations are necessary to improve the relationship of organizational performance and social capital.

Suggested Citation

  • Shuwang Zhang & Ghulam Rasool Madni & Iftikhar Yasin, 2022. "Exploring the Mutual Nexus of Social Capital, Social Innovations and Organizational Performance," Sustainability, MDPI, vol. 14(19), pages 1-15, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:11858-:d:920454
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/19/11858/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/19/11858/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
    2. Francisco Rodríguez-Cifuentes & Adrián Segura-Camacho & Cristina García-Ael & Gabriela Topa, 2020. "The Mediating Role of Psychological Capital between Motivational Orientations and Their Organizational Consequences," IJERPH, MDPI, vol. 17(13), pages 1-21, July.
    3. Andrew M. Chisholm & Klaus Nielsen, 2009. "Social Capital and the Resource-Based View of the Firm," International Studies of Management & Organization, Taylor & Francis Journals, vol. 39(2), pages 7-32, January.
    4. Chung-Leung Luk & Oliver H M Yau & Leo Y M Sin & Alan C B Tse & Raymond P M Chow & Jenny S Y Lee, 2008. "The effects of social capital and organizational innovativeness in different institutional contexts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 589-612, June.
    5. Yu-Shan Chen & Chun-Ming Lien & Wei-Yuan Lo & Fuh-Shyong Tsay, 2021. "Sustainability of Positive Psychological Status in the Workplace: The Influence of Organizational Psychological Ownership and Psychological Capital on Police Officers’ Behavior," Sustainability, MDPI, vol. 13(5), pages 1-16, March.
    6. Shi Qiao & Qiankun Wang, 2021. "The Effect of Relational Capital on Organizational Performance in Supply Chain: The Mediating Role of Explicit and Tacit Knowledge Sharing," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    7. Ieva Meidute-Kavaliauskiene & Vida Davidaviciene & Gencay Karakaya & Shahryar Ghorbani, 2021. "The Measurement of Organizational Social Media Integration Impact on Financial and Innovative Performance: An Integrated Model," Sustainability, MDPI, vol. 13(18), pages 1-16, September.
    8. Mirna Kordab & Jurgita Raudeliūnienė & Ieva Meidutė-Kavaliauskienė, 2020. "Mediating Role of Knowledge Management in the Relationship between Organizational Learning and Sustainable Organizational Performance," Sustainability, MDPI, vol. 12(23), pages 1-20, December.
    9. Djellal, Faridah & Gallouj, FaIz, 2005. "Mapping innovation dynamics in hospitals," Research Policy, Elsevier, vol. 34(6), pages 817-835, August.
    10. Christopher Pollitt & Peter Hupe, 2011. "Talking About Government," Public Management Review, Taylor & Francis Journals, vol. 13(5), pages 641-658, June.
    11. Segars, A. H., 1997. "Assessing the unidimensionality of measurement: a paradigm and illustration within the context of information systems research," Omega, Elsevier, vol. 25(1), pages 107-121, February.
    12. Carrie R. Leana & Frits K. Pil, 2006. "Social Capital and Organizational Performance: Evidence from Urban Public Schools," Organization Science, INFORMS, vol. 17(3), pages 353-366, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thune, Taran & Mina, Andrea, 2016. "Hospitals as innovators in the health-care system: A literature review and research agenda," Research Policy, Elsevier, vol. 45(8), pages 1545-1557.
    2. Tether, Bruce S. & Tajar, Abdelouahid, 2008. "The organisational-cooperation mode of innovation and its prominence amongst European service firms," Research Policy, Elsevier, vol. 37(4), pages 720-739, May.
    3. Salge, Torsten Oliver, 2012. "The temporal trajectories of innovative search: Insights from public hospital services," Research Policy, Elsevier, vol. 41(4), pages 720-733.
    4. Jorge Linuesa-Langreo & Pablo Ruiz-Palomino & Dioni Elche-Hortelano, 2018. "Integrating Servant Leadership into Managerial Strategy to Build Group Social Capital: The Mediating Role of Group Citizenship Behavior," Journal of Business Ethics, Springer, vol. 152(4), pages 899-916, November.
    5. Marcel Bednarz & Tom Broekel, 2020. "Pulled or pushed? The spatial diffusion of wind energy between local demand and supply [Constructing regional advantage: platform policies based on related variety and differentiated knowledge base," Industrial and Corporate Change, Oxford University Press, vol. 29(4), pages 893-916.
    6. Jarle Aarstad & Olav Andreas Kvitastein & Stig-Erik Jakobsen, 2019. "What Drives Enterprise Product Innovation? Assessing How Regional, National, And International Inter-Firm Collaboration Complement Or Substitute For R&D Investments," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-25, June.
    7. Sharma, Vivek & Bhat, Dada Ab Rouf, 2020. "An empirical study exploring the relationship among human capital innovation, service innovation, competitive advantage and employee productivity in hospitality services," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 1-14..
    8. Rana, Mohammad B. & Elo, Maria, 2017. "Transnational Diaspora and Civil Society Actors Driving MNE Internationalisation: The Case of Grameenphone in Bangladesh," Journal of International Management, Elsevier, vol. 23(1), pages 87-106.
    9. Chin-Shan Lu & Kuo-Chung Shang & Chi-Chang Lin, 2016. "Examining sustainability performance at ports: port managers’ perspectives on developing sustainable supply chains," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(8), pages 909-927, November.
    10. Jonas Heiberg & Bernhard Truffer, 2021. "The emergence of a global innovation system – a case study from the water sector," GEIST - Geography of Innovation and Sustainability Transitions 2021(09), GEIST Working Paper Series.
    11. Francisco Más-Verdú & Jose Polo Otero & José García Quevedo, 2010. "Which firms want PhDs? The effect of the university-industry relationship on the PhD labour market," Working Papers 2010R02, Orkestra - Basque Institute of Competitiveness.
    12. Lander, Bryn & Atkinson-Grosjean, Janet, 2011. "Translational science and the hidden research system in universities and academic hospitals: A case study," Social Science & Medicine, Elsevier, vol. 72(4), pages 537-544, February.
    13. De Clercq, Dirk & Danis, Wade M. & Dakhli, Mourad, 2010. "The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies," International Business Review, Elsevier, vol. 19(1), pages 85-101, February.
    14. Nitin Walia & Mark Srite & Wendy Huddleston, 2016. "Eyeing the web interface: the influence of price, product, and personal involvement," Electronic Commerce Research, Springer, vol. 16(3), pages 297-333, September.
    15. Zouaghi, Ferdaous & Sánchez, Mercedes & Martínez, Marian García, 2018. "Did the global financial crisis impact firms' innovation performance? The role of internal and external knowledge capabilities in high and low tech industries," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 92-104.
    16. Wang, Daojuan & Hain, Daniel S. & Larimo, Jorma & Dao, Li T., 2020. "Cultural differences and synergy realization in cross-border acquisitions," International Business Review, Elsevier, vol. 29(3).
    17. Jong-Hyun Kim & Yong-Gil Lee, 2021. "Factors of Collaboration Affecting the Performance of Alternative Energy Patents in South Korea from 2010 to 2017," Sustainability, MDPI, vol. 13(18), pages 1-25, September.
    18. Severin Oesterle & Arne Buchwald & Nils Urbach, 2022. "Investigating the co-creation of IT consulting service value: empirical findings of a matched pair analysis," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 571-597, June.
    19. Marte C.W. Solheim & Ron Boschma & Sverre Herstad, 2018. "Related variety, unrelated variety and the novelty content of firm innovation in urban and non-urban locations," Papers in Evolutionary Economic Geography (PEEG) 1836, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2018.
    20. Matanda, Margaret Jekanyika & Freeman, Susan, 2009. "Effect of perceived environmental uncertainty on exporter-importer inter-organisational relationships and export performance improvement," International Business Review, Elsevier, vol. 18(1), pages 89-107, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:11858-:d:920454. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://www.mdpi.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.