Research On The Effect Of Entrepreneur’s Social Capital And Technological Innovation Ability Onsmall And Medium-sized Enterprises Performance

In the process of rapid economic development in our country, Small and medium-sized enterprises(SMEs) plays an increasingly important role.The growth rate and quality of SMEs’ innovation has significantly affected the economic development of China. SMEs liking bamboo shoots have a vigorous development, and comparing with large enterprises SMEs have a huge energy. Although SMEs have made a great innovative achievements of growth,there are still lack high performance on the innovation outcome,and the innovation ability is still very weak.In the face of economic transformation, China’s SMEs are also facing shortage of talent, and increasing the risk of innovation.The financial channel is not very smooth and facing with other challenges.China’s small and medium enterprises should be awareness and do some actions, which is critical to the success of economic transition.The entrepreneur is the main decision-making of enterprise strategy, it is a key node between enterprise and social environment, entrepreneurs’ social capital plays an irreplaceable role in the process of enterprises operation, especially for SMEs, entrepreneurs can obtain external resources by social capital and can influence SMEs’ performance. Because entrepreneurs’ social capital can obtain the resources which needed by resource allocation conversion, thus can promote the firm performance at the same time.While there are some social burden, its negative effect can not be ignored. Entrepreneurs’ social capital have its own preference and complexity, the research on entrepreneurs’ social capital effect on technology innovation and firm performance is still in the initial stage, the decision mechanism and the motivation behind the behavior has not been elucidated.The key problem of this research is that we will study systematically entrepreneurs’ social capital and find out what’s the influence on the technological innovation ability and firm performance.This paper first introduces the relevant theory, and defines the related concepts: entrepreneurs’ social capital, technical innovation ability and small and medium-sized enterprise performance. From the perspective of resource and institution view, we analysis the theory of the entrepreneurs’ social capital on the SMEs’ performance.After that we collect China small and medium-sized board listing Corporation data 2007-2012 as our sample, and using the random effects model, the generalized method of moment estimation,and stochastic frontier method to conduct an empirical study on the theoretical hypothesis.We use three dimensions of entrepreneurs’ social capital,which consist of political connection, business association network, and technology association network,then analysis how to influence technological innovation ability and small and medium-sized enterprise performance.In China economic transitional period,we further explore the relationship between Entrepreneurs’ Social Capital and the technology innovation ability on the small and medium sized enterprises performance.We breakthrough the enterprise technology innovation from the perspective of social capital, and enrich the theory of enterprise technology innovation.From the two aspects of regional characteristics and the marketing process,we analysis the moderating role on social capital and firm performance, we expect that SMEs can better use social capital,and guide SMEs effectively to use social resources in practice,then really improve their own innovation ability.The results can not only provide a theoretical basis and methods for promoting the development of small and medium-sized enterprises, but also have some enlightenment for the government function,which can promote government to transform their public service functions, and formulate the corresponding policies for the relevant government departments,and facilitate small and medium-sized enterprises developing.