The Impact Of Corporate Social Capital On Innovative Performance

From the perspective of sociology, the key for firms' technological innovation lies in acquiring and exploiting knowledge through external and internal social capital. Thus, it is of value to find out how corporate social capital improves innovative performance. Based on the past literature review in the field of social capital, a conceptual model is developed to deduce the relationship among corporate social capital, absorptive capacity and innovative performance. Considering the role of absorptive capacity, the relationship is totally analyzed between the structural, relational, cognitive dimension of corporate social capital and innovative performance by collecting data of firms in China.In this work, the questionnaire was used for collecting data. Totally 268 questionnaires were sent out while 142 valid ones were got back. The ratio of valid questionnaire is 53%. During the procedure of data processing, some methods such as confirmatory factor analysis (CFA), multiple linear regression and structural equation modeling (SEM) were used to verify hypotheses in the model. Through theoretical exploration and quantitative analysis, some important conclusions are as follows:(1) With absorptive capacity not considered, the structural, relational, cognitive dimension of corporate social capital are all significantly positive to innovative performance. The intensifying of the relationship between firms and customers, suppliers and other firms is important for improving corporate social capital.(2) Based on the analysis of SEM. the model is acceptable involving the level of the structural, relational, cognitive dimension with positive effects on innovative performance by improving absorptive capacity. The mediation effects of absorptive capacity are confirmed in the path and effects analysis.(3) By the effects analysis in SEM. it is verified that corporate social capital plays positive role on improving absorptive capacity and innovative performance through the structural and relational dimension with positive effects on the cognitive dimension.(4) By CFA on the data, the measurement model of corporate social capitalis tested on the basis of exploratory factor analysis. Corporate social capital is measured from the structural, relational, cognitive dimension, with each dimension measured from external and internal of the firms. External social capital is measured from the relationship between firms and customers, suppliers and other firms; between firms and research institutes, universities and technological agency; between firms and government, banks and guilds. Internal social capital is measured from the relationship between the departments of manufacture and R&D, manufacture and marketing, R&D and marketing.