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Social Capital and Entrepreneurial Performance in Russia: A Panel Study

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  • Bat Batjargal

Abstract

Drawing on the social embeddedness perspective, this paper examines the impact of entrepreneurs' social capital on their firm performance in post-Soviet Russia. Based on face-to-face interviews with 75 Russian entrepreneurs in 1995, and the follow-up study in 1999, the study contrasts the effects of structural embeddedness, relational embeddedness and resource embeddedness on firm performance. The main finding is that relational embeddedness and resource embeddedness have direct positive impacts on sales growth, profit margin and return on assets in contrast to structural embeddedness that has no impact on performance. The research implies that further research should focus on finding out what dimensions of social capital affect what performance indicators and how they affect. The practical implication is that entrepreneurs should recruit more resource-rich weak ties into their personal networks.

Suggested Citation

  • Bat Batjargal, 2000. "Social Capital and Entrepreneurial Performance in Russia: A Panel Study," William Davidson Institute Working Papers Series 352, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2000-352
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    References listed on IDEAS

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    1. Huatao Peng & Bingbing Li & Yang Liu, 2022. "How Social Network Influences the Growth of Entrepreneurial Enterprises: Perspective on Organizational and Personal Network," SAGE Open, , vol. 12(2), pages 21582440221, June.
    2. Fornoni, Mariel & Mas-Verdú, Francisco & Ribeiro Soriano, Domingo & Roig Dobón, Salvador, 2009. "Universidad social capital and the competitiveness of entrepreneurs: a review of the literature and proposals," Nülan. Deposited Documents 2157, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Manuela Trochke, 2011. "Social Capital and Economic Development : The Case of Uzbekistan," Working Papers 310, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    4. Huatao Peng & Chen Zhou & Yang Liu, 2020. "Entrepreneurial Experience and Performance: From the Aspect of Sustainable Growth of Enterprises," Sustainability, MDPI, vol. 12(18), pages 1-24, September.
    5. Hans Westlund & Frane Adam, 2009. "Social Capital and Economic Performance: A Meta-analysis of 65 Studies," European Planning Studies, Taylor & Francis Journals, vol. 18(6), pages 893-919, November.
    6. Dossou, Smith A.R. & Aoudji, Augustin K. N. & Vissoh, Pierre & Zannou, Afio, 2021. "Effect of Social Networks and Performance of Young Women Agribusiness Owners in a Developing Country: The Moderating Effect of Business Environment," 2021 Conference, August 17-31, 2021, Virtual 315361, International Association of Agricultural Economists.
    7. Mandakini Das & Nivedita Goswami, 2019. "Effect of entrepreneurial networks on small firm performance in Kamrup, a district of Assam," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-14, December.

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    Keywords

    social capital; firm performance; Russia;
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