Ishaq Ahmad Dar, Abdul Gani, Shakir Hussain Parrey
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Measurement model for social capital: extending social capital in internationalization of SMEs
Social capital constituted of network relationships allows access to resources and opportunities outside the firm. This study aims to explore the relationship between social capital and the internationalization of SMEs along with developing a dimensional measurement model of social capital in this context. The investigation involved primary data collected from Indian SMEs and empirically tested by applying direct relationship test, exploratory factor analysis, and confirmatory factor analysis. Further, the measurement model has been tested for reliability and validity. Formal network relationships, informal network relationships, and intermediary network relationships are found valid and reliable dimensions of social capital in SMEs, establishing the claim for social capital as a multi-dimensional construct. The study further claimed the existence of a direct and significant relationship between social capital and internationalization of SMEs. The study provides implications for practitioners in setting objectives to take maximum leverage of social capital at both individual and firm levels. These firms can be assisted in devising strategies for growth and expansion by managing their social capital. The study clears ground for further studies to work on constituents of social capital in different contexts.
期刊介绍:
Competition in international markets was traditionally the realm of large companies, with smaller firms tending to remain local or regional. Internationalisation was an expansion option of interest to some enterprises, but seldom was it a competitive necessity. Many opted to avoid the uncertainties of competing in foreign markets, and simply kept their firms small and local. Traditional internationalisation theories, therefore, focused mainly on large multinational corporations, and were less pertinent to smaller firms. With the liberalisation of trade, however, domestic firms are threatened by international competitors that are penetrating formerly protected markets. Nowadays, internationalisation affects everyone, whether or not they wish to internationalise themselves. The threats and opportunities of internationalisation must be addressed.
Globalisation is transforming the competitive environment of small and large players alike. As a result, internationalisation issues will continue to be increasingly important to business. Public policy agendas already include programmes to help entrepreneurs become successful at internationalisation. There is a growing need to understand internationalisation in the context of entrepreneurship, as well as large multinationals.
Knowledge of how, when and why firms internationalise - either incrementally or not - will surely be the focus of energetic researchers. Yet, up to now, academia has been lacking a journal dedicated to internationalisation issues. To fill this niche, the aforementioned editorial team wishes to offer an outlet for high-quality research addressing the opportunities and challenges intrinsic to internationalisation.
The primary audience for this journal will be researchers of entrepreneurship and international business. In addition, readership is certain to include business-people and policy-makers.
The editors invite submissions that analyse internationalisation, combining theore tical and empirical work. Researchers will be encouraged to conduct comparative studies, and to evaluate competing theories. The composition of the editorial team - including experts in international business and experts in entrepreneurship - is designed to avoid editorial bias. Every effort will be made to reach a first decision about a submission, within sixty days.
Officially cited as: J Int Entrep