Effect Of Social Capital On Business Performance: The Role Of Dynamic Capability, Government Support

Abstract

Purpose: Business performance depends on dynamic capabilities and government support to increase competitiveness and efficiency. This investigation focuses on examining the relationship between social capital, based on 3 categories: structure, cognitive, and relational social capital on dynamic capabilities and business performance, whereas the relationship between government support affects business performance. Method/ design/ approach- This investigation will take the quantitative approach with the questionnaires distributed to around 209 responses sampling from large corporates and SMEs in Vietnam through convenience sampling procedures. The structural analysis of this research by PLS-SEM modeling. Finding: This study indicates that indicated that social capital supported Vietnamese business performance (BP), dynamic capability (DC), and government support (GS). Government support assistance also boosted the Dynamic capabilities of Business Performance. Furthermore, mediation effects show that Social Capital (SC) and Government Support (GS) fully mediate the relationship between dynamic capabilities and firm performance. Originatively/ value: – the integration of social capital theory and development to clarify how trust functions as a mediator in the intricate link between government support, dynamic capability, and business performance. This study offers proof that trust is crucial in social networks, enabling the performance of the companies under observation