Entrepreneurs’ Social Capital, Choice Of Competitive Strategy And Business Performance

Since the concept of "social capital" was introduced into the academic research,it showed the strong explanatory power has got more and more attention from theresearchers. In recent years, the enterprise performance from the perspective of socialcapital and interpretation are playing an increasingly important role. The relationshipbetween entrepreneurs’ social capital and enterprise performance has been concernedin sociology, economics and management, etc. It is worth mentioning thatentrepreneurs’ social capital influences on enterprise performance and entrepreneursplays a key role in the enterprise strategy and strategic implementation. Entrepreneursnot only choose competitive strategy according to the enterprise’s internal resources,external environment, but also according to the influence of entrepreneur’s socialcapital. Based on this background, we believe that the "entrepreneurs get variousopportunities and other information resources from the development of entrepreneurs’social capital and it decided to choose what kind of competitive strategy in order toimprove enterprise performance" this study will have very far-reaching significance tothe enterprise.In this paper, by reviewing the literature of entrepreneurs’ social capital research,the entrepreneurs’ social capital is divided into the entrepreneur’s institutional socialcapital and the entrepreneur’s marketability social capital; The choice of competitionstrategy in this paper, according to Michael porter’s classification method is dividedinto low-cost strategy and differentiation strategy. This paper mainly analyzes howentrepreneurs’ social capital two dimension through the match with the choice of twokinds of competitive strategy, which affect the performance of the enterprise. Thispaper’s main conclusion is: the differentiation strategy is the entrepreneur institutionalsocial capital intermediary bridge, improve enterprise performance marketability ofsocial capital, through the mediation of low-cost strategy effect improve enterpriseperformance. That entrepreneurs are more likely to have institutional social capitalfrom the government, scientific research institutions to acquire knowledge,information and other advantage resources and choose the differentiation strategy, andpromote the development of enterprise performance; Have more marketabilityentrepreneur social capital can by suppliers such as good relationship with our customers to reduce the cost of a product to choose low cost strategy, achieve thesuccess of the enterprise.This article analysis entrepreneurs’ social capital and enterprise performancethrough the competition strategy, a mediation variables. the internal relations of therelevant conclusions for entrepreneurs to maintain and expand and optimize the socialcapital provides valuable reference guide, it promote the improvement of enterpriseperformance provide beneficial theoretical basis for entrepreneurs choose competitionstrategy, the enterprise not only through the analysis of the external environment,internal conditions to develop the enterprise competition strategy, but also through theanalysis of the entrepreneurs’ social capital, choose the appropriate competitivestrategy to improve corporate performance. It could make the institutional,marketability social entrepreneurs improve to the enterprise performance.