Research On The Impact Of Enterprise Social Capital, Dynamic Capabilities On Firm Growth

Facing the dynamic change of environment, the enterprise to achieve sustainablegrowth is a classic subject of continuing concern in strategic management field.However, the traditional theories of firm growth, e.g. resource-based theory, the corecompetence view, etc., are from the viewpoint of strategic Atomism which cannotfully reflect the real condition of firm growth, and the explanation for firm growth isnot sufficient. This study used the perspective of social capital on firm growthresearch regarding the social networks as a special category of resources. Based onresource-based view and other firm growth theories, this research adopted themethods of logical analysis and empirical analysis, and analyzed the impact of socialcapital and dynamic capabilities on firm growth, by using the theory of social capitaland dynamic capabilities theory to establish the theoretical model of the relationshipamong enterprise social capital, dynamic capabilities and firm growth, through thestatistical analysis of survey data collected from small and medium sizedmanufacturing enterprises and empirical testing the theoretical model by structuralequation modeling.Based on the review of firm growth theories and related research literature, thisresearch found that the firm growth theories, which based on Atomism, believes thatenterprises are independent atomies in impersonal market competing with each otherin order to obtain profits. These theories ignore the enterprise’s social network is aspecial category of resources that can contribute to firm growth. Moreover, thesefirm-growth theories ignore the humanity vital feature of enterprises, which is thesociality demonstrated by enterprises in the social networks. The use of social capitalperspective on the research of this issue is a useful complement to firm growththeories. Simultaneously, some limitations exist in the researches of the impact ofsocial capital on firm growth. Firstly, it is lack of comprehensive studies on firmgrowth and mainly focus on the impact of social capital on technology innovation orbusiness performance so far. Secondly, the concept of social capital, the dimensiondivision and whether social capital is network structure, capability or resource remainto be further defined. Thirdly, the previous researches of the impact of social capital on firm growth are not from every dimension to explore the effects. Fourthly, theresearch objects in the studies of dynamic capabilities are enterprises in theenvironment of rapid change, such as high-tech industry enterprise, and the researchesabout the enterprises in the relative ease of industrial environmental changes are less.Fifthly, the mechanism of the impact of social capital on firm growth need to befurther analyzed yet. Whether enterprise social capital directly impact on firm growthor through mediator to affect it, which still need to be proved.Enterprises are in the specific social networks and corporate social capital isgenerated in social networks. Social capital, which is like the other types of resource,is constantly inherited and accumulated. Because of the process of accumulation,social capital and other type of resources have the heterogenicity, which is difficult toimitate and substitute. It is a shard structural resource rooted in the networks amongindividuals or firms; such resource as the common possession of the members innetwork is exclusive to other firms outside the network. As the special enterpriseresource, social capital has broadened the concept of resource and the endogenousperspective of firm growth theories. Thus, based on ‘resources-capability-firmgrowth’, the analytical framework of firm growth theory, enterprise social capital isincluded in the scope of corporate resources as a special type of it to supplement thisframework. After collating and analyzing the formation and development, levels ofanalysis, classification and measurement of dimensions and implications of socialcapital theory, this research clarified the concept and dimension of social capital. Thisstudy suggested that dynamic capability is a high-level capability which differentfrom the core competence and general operational ability. Dynamic capabilities arethose ones to integrate, reconfigure, gain and release resources, to renew capabilitiesand to achieve optimal mix of resources with dynamic resource matching. Thereforedynamic capabilities are included in this theoretical framework.After established the theory model of ‘social capital-dynamic capabilities-firmgrowth’, this research analyzed mechanism of the impact of enterprise social capital,dynamic capabilities on firm growth, and did the theoretical analysis on the impact ofenterprise social capital on firm growth, the impact of dynamic capabilities on firmgrowth and the impact of enterprise social capital on dynamic capabilities respectively. On this basis, the research hypotheses were proposed, conceptual model was built andquestionnaire was designed. The small and medium-sized manufacturing enterprisesas test object, the validity and credibility of sample data were tested and structuralequation model was built by the software Lisrel8.51and SPSS16.0. Through theevaluation of SEM’s fitness and model modification, this research tested the validityof theoretical model. After the analysis of the data, conclusions were drawn.Through theoretical and empirical research, this dissertation drew the followingconclusions:1. Enterprise social capital has a significant importance on firm growthfrom the enterprise social capital perspective to study firm growth issue.2. Variousdimensions of enterprise social capital affect firm growth in different ways, so thedifferences of utilizing social capital among enterprises determine whether structuraland relational dimension of social capital can help firms to grow.3. Through dynamiccapabilities, enterprise social capital have a positive impact on firm growth anddynamic capabilities have a significant positive impact on firm growth which are highlevel capabilities.4. The cognitive dimension of enterprise social capital has a directpositive impact on firm growth and enterprises should spend more effort oncultivating the shared cognitive paradigm to achieve growth.5. Based on socialcapital perspective，the theoretical framework of ‘enterprise social capital-dynamiccapabilities-firm growth’ has been established, which urge enterprises should jointlydevelop corporate social capital and dynamic capabilities in order to promote firmgrowth.This research carried on the discussion and research about the impact ofenterprise social capital on firm growth and the mediating function of dynamiccapabilities, and conducted a tentative theory innovation from the following threeaspects:1. Based on the perspective of social capital, this research took the variable ofdynamic capabilities as a mediator to analyze the impact of social capital on firmgrowth, which enriched the theory of social capital. Based on the perspective of socialcapital to study firm growth, this research regarded the enterprise social capital as astrategic resource. Starting from the relationship between enterprises and consideringinteraction between enterprises as nodes in the various networks, this study broke through the former researches which focused on enterprise internal resources. Itprovided a new research perspective for the firm growth studies and enriched thesocial capital theories.2. The theoretical model of ‘enterprise social capital-dynamic capabilities-firmgrowth’ was built and tested through systematically analyzed the theories of enterprisesocial capital, dynamic capabilities and firm growth. Taking the Chinese small andmiddle sized manufacturing enterprises as the research object, it illustrated themechanism of enterprise social capital and dynamic capacities’ impact on firm growth.It provided a new theoretical framework for the research of enterprise growth andmodels through the integrated study of three variables, social capital, dynamiccapabilities and firm growth, and using the structural equation model to investigateand verify the influence of each dimension of enterprise social capital and dynamiccapabilities on firm growth.3. This research introduced dynamic capabilities as a mediator variable to firmgrowth model, expanding the scope of application of dynamic capabilities. Previousresearches on dynamic capabilities focused on the industries with rapidly changingenvironment, e.g. the high-tech industry enterprises, and the literature on firm growthresearch which taking dynamic capabilities as mediator was less. The correspondingempirical analysis is scarce. Through SEM to verify the theoretical model, this studyenriched the empirical researches of firm growth to some extent.Through theoretical and empirical analysis, this research from enterprise socialcapital and dynamic capabilities perspective explored the issue of firm growth, whichprovided a reference for enterprises in order to effectively access to strategicresources and consider long-term business sustainable growth to better nurture andaccumulate corporate social capital and play an effective role of dynamic capabilities.