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The Study of the Social Capital of Cluster-composing Enterprises

Author: LiuJingPing
Tutor: ChenChiPing
School: Xiangtan University
Course: Industrial Economics
Keywords: social capital corporate social capital corporate competitive advantage industrial cluster
CLC: F270
Type: Master's thesis
Year: 2009
Downloads: 111
Quote: 0
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Social Capital is the most influential theoretical concept derived from the New Economic Sociology. It integrates the system factor, the value judgment and the cultural influence to the economic analysis frame. The widespread applications of social capital make many factors that unconsidered but affected the economic development enter people’s vision. It has developed the economic research category greatly. Social capital has three main sources: trust, rules and social networks. In the era of economic globalization, industry clusters, as regional forces, play a more and more important role to participate in international economic competition.There becomes a new trend that enterprises get development and expansion through clustering to participate in the local and world economical competition. In fact, the fundamental reason of the concentration of enterprises in certain areas lies in the fact that the concentration into industry clusters could gain a competitive edge.Taking the micro-view of industry cluster——enterprise, with the adoption of theories related to social capital and industry cluster, enterprise social capital in industry cluster has been clarified, and the features together with the formation process of the social capital in cluster-composing enterprises have been analyzed in the thesis. Based on the above discussion, the influences of enterprise social capital on the competitive advantage of cluster-composing enterprise have been illustrated. The competitive advantages of cluster-composing enterprises manifest in the following three ways: cost advantage, innovation advantage and crisis-dealing advantage. Through the latent punishment mechanism, enterprise social capital could effectively decrease the possibility of credit-breaking for an enterprise and then does well to the saving of enterprise transaction fees. Enterprise social capital could broaden the communication channels of information and resources and thus overcome the stickiness of knowledge, then the latent knowledge of enterprise could be activated and technical innovation could be promoted. The two sources of enterprise social capital, namely, trust and social network could be beneficial to the prevention and treatment for an enterprise. Moreover, Enterprise social capital could help an enterprise enhance its crisis-management competence. Through analysis, the competitive advantage of a cluster-composing enterprise is determined by its social capital to some extent. Therefore, cultivating effective social capital for enterprises is a necessary part to consolidate, maintain and enhance the competitive advantage. Subsequently, with the current situation of social capital in cluster-composing enterprises in China, the fundamental reasons for the deficiency of social capital fostering in cluster-composing enterprises in China have been explored and according countermeasures have been proposed.Research on the social capital of cluster-composing enterprises can not only provided theory support to formation and the development of the local industrial cluster and enriched social capital system from the different angle, but also gave the government and the related supervisory department suggestions on policy making.

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CLC: > Economic > Economic planning and management > Enterprise economy > Economic theory and methods
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