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The Moderating Effect of Social Capital in Relation to Entrepreneurial Orientation and Firm Performance
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Author(s): Alireza Jalali (Universiti Sains Malaysia, Malaysia), Ramayah Thurasamy (Universiti Sains Malaysia, Malaysia)and Mastura Jaafar (Universiti Sains Malaysia, Malaysia)
Copyright: 2017
Pages: 34
Source title:
Handbook of Research on Small and Medium Enterprises in Developing Countries
Source Author(s)/Editor(s): Noor Hazlina Ahmad (Universiti Sains Malaysia, Malaysia), T. Ramayah (Universiti Sains Malaysia, Malaysia), Hasliza Abdul Halim (Universiti Sains Malaysia, Malaysia)and Syed Abidur Rahman (Universiti Utara Malaysia, Malaysia)
DOI: 10.4018/978-1-5225-2165-5.ch005
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Abstract
The importance of entrepreneurial orientation (EO), resource-based view (RBV), network types of social capital (SC) and small and medium enterprises (SMEs) have become the main focus in the manufacturing environment. The current study investigates 1. The relationship between EO and Manufacturing SMEs performance and 2. The moderating effect of intra- and extra-industry network in EO and manufacturing SMEs performance relationship. Quantitative method was done through survey. The population of this study was industrial SMEs in Tehran and Hamedan. Proportionate stratified random sampling was employed and out of 580 questionnaires sent out, only 150 questionnaires were returned. The result implies that the dimensions of EO positively improved manufacturing SMEs performance. In addition the result shows that the high intra-industry network strongly moderates the relationship between innovativeness and growth-profit ability and also strongly moderates the relationship between risk-taking and growth-profitability. Contributions and limitations of the study are also discussed accordingly.
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