Social capital interventions at firm level affecting performance in the Zimbabwean manufacturing sector
Social capital research has largely focused on developed economies and there is conflict of acceptance on the legality of some network relations across cultures. This study pioneered the interventions at firm level aimed at building social capital for company performance in the Zimbabwean manufact...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Virtus Interpress
2016
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| Subjects: | |
| Online Access: | http://hdl.handle.net/11408/837 |
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| Summary: | Social capital research has largely focused on developed economies and there is conflict of acceptance on
the legality of some network relations across cultures. This study pioneered the interventions at firm level
aimed at building social capital for company performance in the Zimbabwean manufacturing sector. This
was in an effort to provide evidence of the need for network relations to enhance business performance. A
survey method was used to collect data to confirm empirically the social capital interventions existing in
the sector. Using an econometric model, 10 social capital variables were regressed to determine
importance of the interventions. The bivariate results indicated that networks, level of trust and
entertainment were significantly associated to firm performance. On the multivariate level, trust,
presences of an entertainment budget and government liaison were positively associated with firm
performance. It was concluded that investment in social capital through entertainment budget created
profitable relationships which if nurtured builds trust which reduces transaction costs thus affecting the
bottom line. So social variables which were significantly associated with performance worked in a
symbiotic, cyclical nature. |
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