Social capital, knowledge sharing and firm operational performance - The case of SMEs in Ho Chi Minh city, Vietnam
Abstract
The aims of the study is to investigate what and how dimensions of social capital and types of knowledge sharing affect SMEs operational performance. Specifically, the research considers social capital as an important precursor of knowledge sharing, which later influence operational performance. The investigation started with a review of literature relating to social capital, knowledge sharing, and operational performance. Twelve hypotheses with six constructs were established and tested using structural equation modeling (SEM). A sample of 348 respondents who are SME managers to top managers in Ho Chi Minh city area using convenient sampling method. The research discovers that all three social capital dimensions have significant impacts on explicit knowledge sharing. Relational dimension and cognitive dimension of social capital are proved to be positively associated with tacit knowledge sharing. Among the three dimensions, only cognitive, social capital has a direct relationship with operational performance. Other dimensions contribute to the improvement of operational performance through their impact on knowledge sharing. Futhermore, explicit knowledge sharing is confirmed to have positive impact with operational performance. Given the intensive competition in the present-day business, SMEs should be aware of their social capital and knowledge sharing practices to increase their operational performance. SMEs can utilize these research findings as part of their knowledge and social capital management.
Keywords
Social capital, knowledge sharing, operational performance, SMEs, structural equation modeling.