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  • articleOpen Access

    Social Capital and Economic Development in a Large and Multi-Ethnic Developing Country: Evidence from Indonesia

    The role of social capital in economic development has been a subject of interest to both academics and practitioners of development for several decades. However, empirical evidence on social capital in the context of developing countries is still relatively scant. This study explores the effects of social capital on economic development in Indonesia, a large and multi-ethnic developing country. Using district-level data for 2006–2019, we find that the relationships between social capital and economic development are complex. There are both favorable and unfavorable effects of social capital on economic development, as well as nonlinear effects. Hence, we cannot draw unequivocal conclusions on the benefits or disadvantages of social capital for economic development. Nevertheless, this study finds that trust among people across different ethnic groups, participation in communal works and social activities, and trust in government are the most important forms of social capital needed to improve people’s welfare.

  • articleNo Access

    SOCIAL CAPITAL FORMATION AND INTRA FAMILIAL CORRELATION: A SOCIAL PANEL PERSPECTIVE

    Social capital is widely regarded to constitute an important indicator for the economic performance of a society. This paper analyzes the impact of various socio-demographic characteristics on social capital. Proxy variables for social capital are obtained from a comprehensive principal components analysis exercise using survey data from the British Household Panel Survey (BHPS). The BHPS provides information on social and economic change at the individual and household levels in Britain and the UK with an annual survey of ca. 10,000 individuals from ca. 5,000 households. Based on the 13th wave of this database, we investigate the impact of exogenous qualities, individually acquired characteristics, and of the social environment using a spatial auto-regression framework. The results show that the formation of social capital can be modeled to a very high degree of statistical accuracy. The structural effect from the households contributes substantially to the social capital level of each household member. Thus, the social capital formation can be based equally on individual measures (such as education) and social contagion processes.

  • articleNo Access

    SAGE DOCTRINE, SOCIAL CAPITAL, AND LABOR — MANAGEMENT RELATIONS IN 21ST CENTURY TAIWAN

    Within just four decades Taiwan was able to transform itself from a poor and backward economy into a high income, newly-industrialized economy. Taiwan's outstanding economic performance during this period prompted the World Bank and other international organizations to refer to this transformation as the "Taiwan miracle," and other developing countries have been encouraged to learn from Taiwan's experience. Harmonious and stable labor–management relations was — one of the major factors contributed to this successful development because they facilitated the inflow of a large amount of direct foreign investment (DFI) and therefore provided the island with the capital and appropriate advanced technologies that were urgently needed, and generated a large number of employment opportunities. In this paper, we use the concept of social capital to explain the causes of the harmonious labor–management relations in the past, and discuss the possible future of Taiwan's labor–management relations.

  • articleNo Access

    THE EFFECT OF HUMAN CAPITAL ON SOCIAL CAPITAL AMONG ENTREPRENEURS

    Using data collected from 714 entrepreneurs in a random sample of 10,000 Danes, this study provides an investigation of the effect of human capital on social capital among entrepreneurs. Previous entrepreneurship research has extensively investigated the separated effect of human capital and social capital on different entrepreneurial outputs. The study takes a step back and investigates how these two capital concepts are related — specifically how human capital influences social capital. In general, human capital and social capital were found to be co-productive, and increased human capital seems to increase the level of social capital concurrently. The dependence between human capital and social capital has tremendous implications for policy making and entrepreneurs.

  • articleNo Access

    SOCIAL CAPITAL IMPEDIMENTS IN THE UNITED ARAB EMIRATES: A CASE OF EMIRATI FEMALE ENTREPRENEURS

    It is possible that when looked at from the outside, the Gulf Arab countries give an impression that they are not very supportive to female entrepreneurs. This perception may be pertinent to a certain degree; however, Emirati female entrepreneurs (EFE) in the United Arab Emirates demonstrate that enhancing co-operation and support is possible through increasing interaction and networking with men. Analysis is undertaken of the observations and actions of conveniently selected 17 EFEs. The scoping of the respondents reveal that EFEs who engage with indirect male ties require a 'male contact facilitator' from their family or relatives to do so. These men are facilitated by the entrepreneur to adopt the role of a 'male network partner (MNP) and provide support in overcoming challenges and achieving business objectives. The paper sets new standards of support for Emirati women in business ventures as it attempts to describe Emirati female entrepreneurship in a different language and proposes that co-operation, interaction and networking with men help EFEs access and use key resources, alleviate or remove key challenges and achieve business objectives.

  • articleNo Access

    Zimbabwean Migrant Entrepreneurs in Kempton Park and Tembisa, Johannesburg: Challenges and Opportunities

    The study explores the lives of seventeen Zimbabwean entrepreneurs studied in Tembisa and Kempton Park, Johannesburg in 2012. It analyses the structure of opportunity available to these entrepreneurs and argues that although migrants can create employment, they do not necessarily benefit the local populations because their businesses are too small and also because of their reluctance to employ locals whom they consider lazy and troublesome. Zimbabweans originally migrated to South Africa in search of good salaried jobs rather than self-employment. Self-employment is largely a result of dissatisfaction with the conditions of employment, inability to get desired jobs and having a better command of human and social capital. These migrants have a short history in self-employment and are the first to establish such economic ventures in their families. Their businesses thrive because of hardwork, engaging in activities that they are familiar with (thus they do not venture into complicated, unfamiliar territory) and relying on the neighbourhood which serves as a market. All the entrepreneurs studied view South Africa as a land of opportunities where one can establish himself/herself and survive, although the environment is riddled with xenophobia. However, most can be classified as survival entrepreneurs.

  • articleNo Access

    Entrepreneur’s Social Capital and Firm Growth: The Moderating Role of Access to Finance

    Social capital and access to finance have been identified as key resources that influence the growth of small firms however, these variables have rarely been studied. This paper, therefore, examines the relationship between social capital and firm growth with access to finance as a moderating role. 250 small firms in the Kumasi Metropolis in Ghana were used for the study. Structural Equation Modelling using Partial Least Square (PLS) was used to analyze the data collected using area sampling. The results indicated that social capital does not directly influence firm growth. In addition, access to finance does not moderate the relationship between social capital and firm growth. However, a positive relationship was found between social capital and access to finance. Access to finance and firm growth, though significant, had a negative relationship. It is recommended that since social capital influences the capability to access finance, entrepreneurs should be encouraged to build more relationships within their networks. Moreover, government agencies and financial institutions should devise strategies that will reduce the interest rates so that though these small firms in Ghana can access finance, the high interest rates will not erode the gains they may achieve in the long run.

  • articleNo Access

    An Exploratory Examination of the Mompreneur and Multi-Level Marketing: What Does She Do and Why Does She Do It?

    The number of small businesses owned by women in the United States is on the rise, due to a variety of reasons. One business model, which is attractive to mothers who lead busy lives, is multi-level marketing. The purpose of this study is to examine the motives of mompreneurs and gain a better understanding of their experiences with the multi-level marketing business model. Data collection involved both a survey and phenomenological interviews. The results identified a variety of motivations for engaging in multi-level marketing, ranging from economic to brand relationships. The women utilised social media tools to access their social capital in order to advertise and sell products to a large network of other women. Moreover, they received significant support from their family and friends related to their business. Several success factors and challenges were identified, as was a finding related to the serial nature of multi-level marketing business ownership. Theoretical and managerial implications are discussed.

  • articleNo Access

    TRUST AND CULTURE

    Large populations can gain from economies of scale but lose internal trust due to diluted information. This creates an optimal group size. However, trusting strangers who claim to be members invites outsiders to disguise as insiders and abuse extended trust. Thus, if cultural diversity can raise the imitation cost it can promote cooperation. Even so, however, scale economies are lost when the population subdivides and the cultural boundaries may have to be enforced to prevent assimilation. The model is consistent with norms against inter-cultural marriage and episodic boundary-reinforcing conflict where formal institutions for contract enforcement are weak.

  • articleNo Access

    香港邊緣社群社會資本的貧乏

    本文根據調查資料,分析香港邊緣社群(包括貧窮人士以及無業、不固定工作者)的社會網絡,並根據這些人士的社會網絡的規模及同質化程度,來衡量其社會資本的數量及性質。結果顯示貧窮人士社會網絡的規模明顯較非貧窮人士小,尤其以介紹工作網絡的差別最明顯,這顯示貧窮人士的社會資本較非貧窮人士少。貧窮戶的社會網絡中亦以無業人士居多,以致社會網絡出現同質化的情況。沒有工作及屬不固定工作人士的社會網絡的規模亦明顯小於有固定工作的人士,其社會網絡亦出現同質化,而無業或工作不穩定對男性造成同質化的影響較女性大。所以,無業及不穩定工作人士的社會資本較固定工作人士少。要真正解決香港的貧窮問題,必須增加貧窮人士的社會資本。

    This paper, based on a sample survey, analysed the social network of the marginal groups including the poor, the un-employed and people with unstable jobs in Hong Kong. The quantity and quality of social capital of the above groups were measured according to the size and homogeneity of their social network. Results showed that the size of social network of the poor was significantly smaller than that of the non-poor, especially in the network of job searching. This suggests that the social capital of the poor was less than that of the non-poor. It is more likely that the social network of the poor was constituted of the un-employed, that was why it was more homogenous. Social network of the un-employed and people with unstable jobs was smaller than that of the people with stable jobs. The un-employed or unstable job holders also induced homogeneity in their social network, the impact of which was greater on male than female. To alleviate the problem of poverty in Hong Kong, we should increase the social capital of the deprived people.

  • articleNo Access

    MICROCREDIT, CIVIC NETWORKS AND WOMEN'S POLITICAL INVOLVEMENT IN BANGLADESH

    The social capital school has proposed that one of the key mechanisms for generating good democratic outcomes is participation in voluntary associations. Of late, group-based microcredit programmes are considered as effective policy instruments for generating and strengthening civic networks of the community. However, on the micro-level we do not know enough about how membership in microcredit programmes promotes civic engagement, nurtures democratic learning process and makes their members more cooperative. In this paper I investigate whether microcredit providing NGOs have run through and nurtured democratic practices at the local level and whether they mobilize citizens politically and promote leadership among the women. The results indicate that microcredit organizations in the area that I studied failed to promote women's political capabilities or civic engagement since these organizations mainly concentrate on the services of credit distribution and installments collection, and have deviated or shifted away from community mobilization.

  • articleNo Access

    THE RESOURCE MOBILIZATION OF COMMUNITY-BASED SOCIAL ENTERPRISES IN TAIWAN

    Community organizations are often attached to the government's institutional conditions in Taiwan. However, with the government driving its policies, not only are these community organizations developing rapidly, but they also become more self-aware, striving for resources from different sectors on their own initiative and thereby forming the usual bottom-up exercise from civil society. This paper applies social capital and resource mobilization perspectives to study the present situation and characteristics of community-based social enterprise (CBSE) in Taiwan. According to the findings, the incentives provided by the Taiwanese government are truly an important driving force to promote the development of CBSE. The impact of community organizations is the important mechanism to develop CBSE. By the integration of product and innovation, community organizations are important bases to develop social enterprise. In addition, when developing social enterprises, community organizations must follow local society, humanity or products in order to result in social enterprises with local features. Finally, sales of products of CBSE are based on public trust network of communities. For a community organization to invest in developing businesses, it not only needs the force of a collective action to mobilize resources, but it also needs to form public trust within the community. Finally, the development of CBSE is closely related to the community residents, network relationships and trust as advocated by social capital can become vital strengths to support the development of CBSE, and are also media that must be relied on for CBSE to succeed.

  • articleNo Access

    INNOVATIONS IN FINANCIAL INCLUSION OF THE URBAN POOR: A MODEL OF RAHAT CREDIT COOPERATIVE SOCIETY, INDIA

    Most of the Asian countries face challenge of poverty which is linked with unemployment. Lack of assets and income make poor unable to invest for self employment or for knowledge /skill development leading to employment. Access to financial services may help people to come out of poverty through variety of ways like availing credit, insurance and saving facilities. In India, in spite of several initiatives for financial inclusion, field level data shows that by merely opening bank account the access to credit may not be there and financial inclusion in true sense may not happen. The microfinance movement had regional success in India. There are almost 35% urban poor in India indicating the need of innovations in financial services for them.

    “Rahat Urban Credit Cooperative Society” was a initiative in 2008 of few persons belonging to Islam religion and believing on the teachings of Quran that the interest should not be taken. Though inspired by a particular religion the services are extended to all community groups. In today’s context when different religions are discussed for using the religious values/teachings negatively, Rahat will be a unique example how religious teachings can be utilized positively for society’s benefits. Since 2011, besides usual financial products, it gives interest free and collateral free loans for urban poor for self employment and for consumption purposes.

    The case study focuses on understanding the community based business model and its impact on urban poor in terms of their financial needs by analyzing the financial performance. The study explores how 98% recovery rate for loans is there and how depositors are attracted for interest free product. It also tries to understand the use of social capital in provision of financial services for urban poor having inability to give collateral.

    “Rahat” means relief. The present paper l brings out a Rahat model of financial services and inclusion of urban poor and try to understand how it has brought the relief in urban poor lives.

  • articleNo Access

    FOOD INSECURITY AMONG LOW-INCOME OLDER PERSONS IN HONG KONG: THE ROLE OF PUBLIC ASSISTANCE, SOCIAL SERVICES, AND SOCIAL CAPITAL

    Food is one of the physiological needs that have an immediate impact on healthy aging. However, the persistent poverty problem in Hong Kong has increasingly made it difficult for low-income older persons to meet their basic needs. This paper examines to what extent poor older persons suffer from food insecurity and how their food insecurity is related to the different types of resources they have. Based on the data collected through a questionnaire survey and in-depth interviews, the study found that about 20% of low-income older persons experienced food insecurity, and male, older seniors, and those in a larger household with lower socio-economic status were particularly vulnerable. Among the resources that older people can utilize, public assistance and social services were found to be more conducive to food security than social capital. The implementation of a food voucher scheme and the facilitation of food distribution and social eating are suggested.

  • articleNo Access

    Relationship Among the Dimensions of Knowledge Management from the Viewpoint of Social Capital Based on Interpretive Structural Modelling (A Case Study)

    The main purpose of the present research is to identify the internal relationships among the dimensions of knowledge management from the viewpoint of social capital. The statistical population includes 50 Professors and experts in the field, who have been defined as connoisseurs. The data have been collected through the use of the researcher-designed questionnaire. The validity of the questionnaire was confirmed by content validity, and its reliability was determined by test–retest method. The results indicate that the dimensions of knowledge management, from the social capital perspective, have relatively strong, reciprocal systemic relations with each other. Among the dimensions of knowledge management studied in the research, the "leadership and management" dimension has been identified as the strongest dimension from the viewpoint of leading power, and the "intellectual capital" has been recognised as having the highest rate of dependence on the other dimensions of knowledge management regarding the social capital of knowledge management. The results obtained from the identification and evaluation of the systematic relations can be used as a guide by managers and decision-makers in designing strategic programs concerning knowledge management within the organisation while having social capital in mind.

  • articleNo Access

    A Data Analysis Investigation of Smart Phone and Social Media Use by Syrian Refugees

    A descriptive statistics approach is applied to analyse a newly collected dataset from Young Syrian Refugees in Lebanon. The aim of the paper is to empirically document the uses and gratifications of YSRs smartphone and social media use. Results indicated that the majority of YSRs use Facebook and WhatsApp for communications and entertainment purposes. Frequency analysis was used to determine the rate at which YSRs own and utilise smartphones and Social Networking Sites. Findings indicate that males head of households purchased smartphones for wives, younger sisters and mothers. Cross tabulation analysis of the role of gender on uses and gratifications of smartphones yielded an exclusion effect due to cultural consideration. This paper opens up new horizons in the use of information technology for improving the living conditions of refugee populations.

  • articleNo Access

    The Paradox of Knowledge Networks: Why More Knowledge Does Not Always Make You More Successful

    The purpose of this research was to further the understanding of knowledge exchange within organisations by examining how the dyadic relationships between individuals, in terms of the channels of communication used (structural capital), knowledge awareness (cognitive capital), and the quality of their relationships (relational capital), influence opportunities for knowledge exchange (access to advice), and ultimately individual performance. data were analysed using social network analysis to determine individual network centralities, and structural equation modelling was used to test the hypotheses at the individual level. The findings suggest (1) face-to-face channels with trusted sources are the most preferred method for exchanging sensitive knowledge, (2) knowing where expertise resides and source availability is key to research knowledge exchange, and (3) centrality in knowledge network does not result in uniform increases in individual performance. While technology has the potential to increase the efficiency of knowledge exchange by removing the barriers to same-time, same-place interactions, computer-mediated communication may actually inhibit the exchange of tacit knowledge and advice because of the lean medium of the exchange, negatively impacting performance. Using a network perspective, this study adds to the literature on intra-organisational learning networks by examining how an individual’s use of different communication channels to share knowledge is related to centrality in knowledge networks, and how this impacts individual performance.

  • articleNo Access

    Navigating Virtual Connections: Exploring the Impact of Workplace Friendship on Team Performance During the COVID-19 Pandemic

    This study aims to investigate the influence of virtual work friendships on knowledge sharing and team performance in the context of the COVID-19 pandemic. Additionally, it explores whether perceived task interdependence moderates this relationship. A survey-based research design was employed to collect data from 213 individuals working in IT-based firms. Data were collected in two time lags to capture the dynamics of virtual work friendships, knowledge sharing and team performance. The study reveals a positive and significant relationship between virtual work friendships and team performance. Furthermore, knowledge sharing acts as a mediator between virtual friendships and team performance. Managers should actively promote friendship among employees to enhance virtual work environments. Additionally, when task interdependence is perceived highly, leveraging social resources both virtually and physically can further enhance team performance. This research contributes to the social capital theory by examining the effects of virtual work friendships on team performance in the modern workplace. It is the first study to investigate the moderating role of task interdependence in this context.

  • articleNo Access

    Investigating the Effect of Motives, Social Capital, and Human Capital on Commercialization of Self-Developed Products by User Innovators: A Study of a Crowdfunding Platform

    User innovators follow multiple diffusion and adoption pathways for their self-developed innovations. Users may choose to commercialize their self-developed products on the marketplace by becoming entrepreneurs. Few studies exist that focus on understanding personal and interpersonal factors that affect some user innovators’ entrepreneurial decision-making. Hence, this paper focuses on how user innovators make key decisions relating to opportunity recognition and evaluation and when opportunity evaluation leads to subsequent entrepreneurial action in the entrepreneurial process. We conducted an exploratory study using a multi-grounded theory methodology as the user entrepreneurship phenomenon embodies complex social processes. We collected data through the netnography approach that targeted 18 entrepreneurs with potentially relevant differences through crowdfunding platforms. We integrated self-determination, human capital, and social capital theory to address the phenomena under study. This study’s significant findings posit that users’ motives are dissatisfaction with existing goods, interest in innovation, altruism, social recognition, desire for independence, and economic benefits. Besides, use-related experience, product-related knowledge, product diffusion, and iterative feedback positively impact innovative users’ entrepreneurial decision-making.

  • articleNo Access

    Social Media and Regionalism in South Korean Voting Behavior: The Case of the 19th South Korean Presidential Election

    Issues & Studies01 Sep 2018

    This study examines the moderating effects of social media use on regionalist voting behavior in South Korea. Analyzing the survey data conducted during the 2017 Korean presidential election, we test how social media functions in electoral processes, particularly with respect to region-based voting in the Korean electorate. The findings of this study reveal that social media use affects region-based voting behavior among the Korean electorate by connecting people with different regional backgrounds in online political communication. That is, social media use can create “bridging” social capital rather than “bonding” social capital in society. In this respect, results differ significantly from findings in the 2012 presidential election. In 2012, only the independent effects of social media existed with a liberal bias, without revealing interaction with regional dummies. These independent effects disappeared in 2017, and different kinds of social media were statistically significant only when they functioned as moderating variables for regional dummies. This implies that as the functions of social media in the Korean election process have evolved in more complexity, they now are able to affect progressive as well as conservative voters.