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Empirical Research on Corporate Social Capital, Environmental Hostility Impact on the Business Performance

Author: WangXiao
Tutor: ChenChuanMing; LiuHaiJian
School: Nanjing University
Course: Business management
Keywords: Social Capital Corporate Social Capital SME (Small and MediumEnterprises) Environmental Hostility Firm Performance
CLC: F272
Type: Master's thesis
Year: 2012
Downloads: 145
Quote: 0
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Abstract


Because of the global financial crisis began in the second half of2008, the large number of domestic small and medium enterprises face extremely unfavorable business environment. Due to the inherent disadvantages compared to large enterprises in terms of financing, labor and market competition, SMEs must face more external environment hostility. European debt crisis of2011intensified the trend.Starting from the hot issue of the survival and development of SMEs, this thesis try to apply the social capital theory and the environmental uncertainty theory to analyze the challenges and threats faced by SMEs, and to seek ways to overcome the adverse external environment impact.This article first systematically reviews the literature of social capital theory and environmental uncertainty theory, and on this basis, the theoretical model and research hypotheses are derived combined with strategic management theory. This article holds that corporate social capital include the longitudinal relations capital, horizontal relations capital and social relations capital, we assume that these three social capital has a positive impact on firm performance. In addition, this paper proposes the moderating effect of environmental hostility on the relationship between corporate social capital and firm performance.This article accessed to research data through a questionnaire survey of115manufacturing SMEs. In the questionnaire design process, in order to ensure the reliability and validity of each variable scale, this study adopted the valid scale proved by the domestic and foreign scholars.In this study, we adopt linear regression method to verify and analyze the proposed assumptions. The final results show that corporate social capital to be supported with the assumption of a positive effect on firm performance. Besides, the assumption of the moderating effect of environmental hostility on the relationship between corporate social capital and firm performance is supported, which also proves the rationality of the theoretical model proposed in this study. The model not only has practical significance on how to deal with the challenges of environmental hostility, but also provides a useful reference for follow-up study.

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