Social Network,dynamic Capabilities And SME Growth

Small and Medium-sized Enterprises(SMEs)play a key role in the economic development of various countries.They play an increasingly important role in utilize redundant resources,optimize economic structures,create employment opportunities,reduce poverty rates and maintain social stability.With the trend of global economic integration becoming more and more obvious,technological innovation constantly changing,global information resource sharing becomes possible,customers' values and consumption behavior have changed greatly,SMEs and the large enterprises coexist and embedded in various organizational networks,and the increasingly fierce competition among enterprises,cause SMEs are facing unprecedented opportunities and challenges in their growth process.In Vietnam,SMEs also play an important role.In recent years,the number of SMEs has been increasing and developing rapidly,which has promoted local and national economic growth.While the Vietnamese government has greatly improved the environment of domestic business,it has also introduced a series of policies to support and encourage the development and growth of enterprises which has brought great opportunities for the rapid development of SMEs in Vietnam.However,all these have yet to form a complete market economy system and a complete industrial chain system.Also,due to the lack of capital,technology,human resources,management experiences and other resources and capabilities,many SMEs in Vietnam are facing many developmental problems.At the same time,many Vietnamese SMEs are facing the risks of market elimination shortly after their establishment due to the turbulent global economic environment,increasing market competition and weak competitiveness of the SMEs.The ability to overcome the problems of insufficient resources and limited capacity in order to improve the ability to adapt to complex economic environment,to enhance and maintain the competitiveness of enterprises,and to promote the sustained and healthy growth of enterprises have become an important issue for Vietnamese SMEs to consider.First,this paper uses the “Mapping knowledge domain method” to analyze the related research on SMEs' growth both at home and abroad.It visualizes the content of the key content and research processes in this field,and carries out content division and cluster analysis of the related research.In addition,based on the Interpretative Structural Modeling(ISM),this paper deconstructs and analyses the influencing factors of SMEs' growth,and discusses the social network system that enterprises construct,and the dynamic capabilities of enterprises such as adaptation,learning,absorption and innovation,which played an important role and influence in the growth and development of SMEs.Based on this,this paper attempts to incorporate different types of social networks into the same indicator,and to construct a relationship model of "social networksdynamic capabilities-growth of SMEs",considering the mediating effect of dynamic capabilities on the growth of SMEs.On this basis,this research puts forward the hypothesis that various types of social networks will have a positive impact on the growth of SMEs.The dynamic capabilities of enterprise played an intermediary role in the process on how to effectively obtain resources from different social networks and how to convert these resources into the use of enterprise growth needs to enhance their dynamic capabilities of adaptation,learning,absorption and innovation.Finally,through the questionnaire and empirical analysis of many SMEs in Vietnam,the structural equation model is used to test the research hypothesis.In addition,according to the conclusions of the study,this paper also puts forward policy suggestions and development strategies to enhance the dynamic capabilities of SMEs in Vietnam from the aspects of enterprises,government,management institutions,banks,scientific research institutions and other social network subjects.The conclusions of this study are as follows:Firstly,the growth of SMEs is affected by many factors inside and outside the enterprise,which show diversity and hierarchy.Among them,the social network of enterprises and the ability of enterprises to adapt,learn and innovate in technology are the deepest and important factors in the influencing factor system of SMEs.These two factors together with the level of financial management of enterprises have become the fundamental influencing factors for the growth of enterprises.Social network enables enterprises to obtain external information,resources and social support.Dynamic capability is a series of repeated practices of enterprises.Enterprises ultimately reconstruct internal and external resources and establish new operational capabilities by improving their ability to adapt to the environment,learn,absorb and innovate.Second,the four types of social networks have a positive impact on the growth of SMEs in Vietnam,but the impact of various types of networks on the growth of enterprises in the post-entrepreneurship stage is stronger than that in the initial stage.Among them,the impact of Institutional network on the growth of enterprises is not significant in the initial stage.Institutional network has a direct impact on non-financial indicators,but has no direct impact on financial indicators.The impact of Technology Network is significant on non-financial indicators,but not on financial indicators.Commercial Network has a positive impact on both financial and non-financial indicators,and this impact is more significant than other networks.Information Network has a positive impact on both financial and non-financial indicators.Third,the impact of four types of social networks on the dynamic capabilities of SMEs in Vietnam is different.Institutional network has a positive impact on the ability of environmental adaptation and innovation capabilities,but it has no significant impact on learning absorption;technological network has no significant impact on the three dimensions of dynamic capability;Commercial Network has a positive impact on the ability of environmental adaptation,learning absorption and innovation capabilities;while information network has both learning absorption and innovation capabilities.There is a positive impact,but the impact on environmental adaptability is not significant.Fourth,dynamic capabilities have a positive impact on the growth of SMEs in Vietnam,which play a mediating role between social networks and enterprise growth.Among them,Institutional network influences financial indicators through the complete intermediary effect of environmental adaptability and innovation ability.Commercial Networks influence financial indicators through some mediating effects of environmental adaptability,learning absorption and innovation.And the information network should influence financial indicators through some intermediary effects of learning absorption ability and innovation ability.By dividing the types of enterprise social network(namely Institutional network,Technology Network,Commercial Network and Information Network)and dynamic abilities(which includes Environmental adaptabilities,Learning and absorption abilities and Innovation)into different categories,this study not only enriches the research contents of enterprise social network and dynamic ability,but also focuses on the case application of Vietnamese SMEs,which to some extent makes up for the shortcomings of past researches such as lack of content focus and content refinement.In addition,based on Mapping knowledge domain method,Interpretative Structural Model and Structural Equation Model,this study analyzed the research progress of SMEs' growth,the influencing factors system of SMEs' growth,and the internal relationship of important factors,and then formed a multi-measurement tool for SMEs' growth.Furthermore,this paper establishes the relationship model and research hypothesis of enterprise social network,dynamic capabilities and SMEs' growth,which not only deepens and expands the social network theory,but also provides theoretical and practical guidance for SMEs in Vietnam's transition economy to adapt to the dramatic changes in the environment,seek for the lacking resources,cultivate dynamic capabilities,and enhance technological innovation.These help to improve the relationship between enterprises and government departments,financial institutions,research institutes,trade associations and other institutions.