Social capital, knowledge transfer, innovation and firm performance - The case of Vietnam
Abstract
This study investigates how dimensions of social capital namely network ties, trust and shared vision affects knowledge transfer, how knowledge transfer then influences innovation and how innovation finally impacts firm performance. With the past literature of social capital dimensions, knowledge transfer, innovation and financial performance, this study develops five hypotheses to be tested using structural equation modeling (SEM). A sample of 288 was selected from 153 different companies in Vietnam, (i.e. the North, the South and the Central of Vietnam) using convenient sampling method and snowball sampling method, regardless of their industry and size. The results show that the three dimensions of social capital (i.e. network ties, trust, shared vision) are discovered to positively relate to firm performance with the mediation role of knowledge transfer and innovation. That is, strength of network ties, trust and shared vision will contribute to firm performance through the improvement of knowledge transfer; then knowledge transfer will affect innovation speed and innovation quality; finally, innovation will positively impact on firm performance. Academically, this papers offer an opportunity to further study of social capital with different factors in specific industries. Practically, this finding motivates firms to put emphasis on enhancing their knowledge transfer to significantly increase their firm performance, which is discussed in details in the final chapter.
Keywords
Social capital, network ties, trust, shared vision, knowledge transfer, innovation, firm performance, structural equation modeling.