Dynamic capabilities in small and medium manufacturing firms in rural Finland â€“ role of social capital?
During the last decade, there has been wide agreement on the importance of dynamic capabilities on economic performance of firms. Simultaneously an increasing literature suggests that economic dynamics is embedded in social relations and social institutions. In this article, the determinants of dynamic capabilities of small manufacturing Finnish firms will be explored. Specifically we focus on the importance of social capital for firm dynamics. According to analysis, the most important antecedents of dynamic capabilities of firms are its strategy and social capital. Social capital as wide and active participation in network cooperation correlates statistically significantly with the firm dynamics. Social capital increases firm dynamics by enhancing communication and knowledge spillovers in corporate networks. Active networkers gain important information from their bridging and linking ties, such as other firms and public institutions. According to the analysis, the increase of trust in business relations does not correlate with the dynamic capabilities. Instead trust acts as a trigger factor when firms consider their network activities. Keywords: social capital, networks, trust, dynamic capabilities, small and medium sized enterprises
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dahl, Michael S. & Pedersen, Christian O.R., 2004. "Knowledge flows through informal contacts in industrial clusters: myth or reality?," Research Policy, Elsevier, vol. 33(10), pages 1673-1686, December.
- Jonathan Isham, 2002.
"The Effect of Social Capital on Fertiliser Adoption: Evidence from Rural Tanzania,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 11(1), pages 39-60, March.
- Jonathan Isham, 2002. "The Effect of Social Capital on Fertilizer Adoption: Evidence from Rural Tanzania," Middlebury College Working Paper Series 0225, Middlebury College, Department of Economics.
- Luca Anderlini & Dino Gerardi & Roger Lagunoff, 2008.
"Communication and Learning,"
122247000000001868, UCLA Department of Economics.
- Luca Anderlini & Dino Gerardi & Roger Lagunoff, 2008. "Communication and Learning," Carlo Alberto Notebooks 82, Collegio Carlo Alberto, revised 2010.
- Luca Anderlini & Dino Gerardi & Roger Lagunoff, 2008. "Communication and Learning," Cowles Foundation Discussion Papers 1639, Cowles Foundation for Research in Economics, Yale University.
- Anderlini, Luca & Gerardi, Dino & Lagunoff, Roger, 2008. "Communication and Learning," Working Papers 37, Yale University, Department of Economics.
- Roger Lagunoff & Dino Gerardi & Luca Anderlini, 2008. "Communication and Learning," Working Papers gueconwpa~08-08-01, Georgetown University, Department of Economics.
- Stefano Breschi & Francesco Lissoni, 2003. "Mobility and Social Networks: Localised Knowledge Spillovers Revisited," KITeS Working Papers 142, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Mar 2003.
- Torsvik, G., 2000. "Social Capital and Economic Development," Norway; Department of Economics, University of Bergen 216, Department of Economics, University of Bergen.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p806. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.