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Bureaucratic Systems’ Facilitating and Hindering Influence on Social Capital

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  • Patrick A. Saparito
  • Joseph E. Coombs

Abstract

This study demonstrates how banks’ bureaucratic systems (i.e., formalization, management continuity, customer orientation) are associated with social capital's relational and cognitive dimensions. We collected survey data from a matched sample of 884 small– and medium–sized enterprises (SME) executives and 217 bank managers across 22 banks to test hypothesized relationships. Our results showed that formalization is negatively associated with both dimensions of social capital, while management continuity and customer orientation are positively associated with them. These results are a first step in answering calls in the literature to study bureaucratic systems’ influence on social capital. Theoretical and future research implications are discussed.

Suggested Citation

  • Patrick A. Saparito & Joseph E. Coombs, 2013. "Bureaucratic Systems’ Facilitating and Hindering Influence on Social Capital," Entrepreneurship Theory and Practice, , vol. 37(3), pages 625-639, May.
    • Handle: RePEc:sae:entthe:v:37:y:2013:i:3:p:625-639
    DOI: 10.1111/etap.12028
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