Can Social Capital Explain Business Performance in Denmark?

Tutkimustuotos: ArtikkelijulkaisuArtikkeliTieteellinenvertaisarvioitu

Kuvaus

Motivated by the limited evidence on the positive link between social capital and firm performance, this paper explores this potential driver of firm performance at the firm rather than macro-level by employing a novel approach: we capture social capital at a community level rather than focus on the narrow aspect of entrepreneurs’ own social network. Using principal component analysis to aggregate various trust, norm and network-related variables to construct social capital variables with more than 150,000 firm-level observations for firm performance variables, this paper identifies an overall positive and significant effect of social capital on firm performance in Denmark. These effects are robust to firm-level social capital measures, different sampling years and alternative measures of firm performance (return on asset, current ratio, solvency ratio and profit margin) and network perspectives (Putnam and Olson).
Alkuperäiskielienglanti
LehtiEmpirical Economics
Sivut1-24
Sivumäärä24
ISSN0377-7332
DOI - pysyväislinkit
TilaJulkaistu - 2019
OKM-julkaisutyyppiA1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä, vertaisarvioitu

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  • 512 Liiketaloustiede

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title = "Can Social Capital Explain Business Performance in Denmark?",
abstract = "Motivated by the limited evidence on the positive link between social capital and firm performance, this paper explores this potential driver of firm performance at the firm rather than macro-level by employing a novel approach: we capture social capital at a community level rather than focus on the narrow aspect of entrepreneurs’ own social network. Using principal component analysis to aggregate various trust, norm and network-related variables to construct social capital variables with more than 150,000 firm-level observations for firm performance variables, this paper identifies an overall positive and significant effect of social capital on firm performance in Denmark. These effects are robust to firm-level social capital measures, different sampling years and alternative measures of firm performance (return on asset, current ratio, solvency ratio and profit margin) and network perspectives (Putnam and Olson).",
keywords = "512 Business and Management, social capital, firm performance, Denmark, Border regions, Rural-urban divide",
author = "Cong Wang and {Steiner, PhD}, {Prof. Bodo}",
year = "2019",
doi = "10.1007/s00181-019-01731-3",
language = "English",
pages = "1--24",
journal = "Empirical Economics",
issn = "0377-7332",
publisher = "PHYSICA-VERLAG GMBH UND CO",

}

Can Social Capital Explain Business Performance in Denmark? / Wang, Cong; Steiner, PhD, Prof. Bodo.

julkaisussa: Empirical Economics, 2019, s. 1-24.

Tutkimustuotos: ArtikkelijulkaisuArtikkeliTieteellinenvertaisarvioitu

TY - JOUR

T1 - Can Social Capital Explain Business Performance in Denmark?

AU - Wang, Cong

AU - Steiner, PhD, Prof. Bodo

PY - 2019

Y1 - 2019

N2 - Motivated by the limited evidence on the positive link between social capital and firm performance, this paper explores this potential driver of firm performance at the firm rather than macro-level by employing a novel approach: we capture social capital at a community level rather than focus on the narrow aspect of entrepreneurs’ own social network. Using principal component analysis to aggregate various trust, norm and network-related variables to construct social capital variables with more than 150,000 firm-level observations for firm performance variables, this paper identifies an overall positive and significant effect of social capital on firm performance in Denmark. These effects are robust to firm-level social capital measures, different sampling years and alternative measures of firm performance (return on asset, current ratio, solvency ratio and profit margin) and network perspectives (Putnam and Olson).

AB - Motivated by the limited evidence on the positive link between social capital and firm performance, this paper explores this potential driver of firm performance at the firm rather than macro-level by employing a novel approach: we capture social capital at a community level rather than focus on the narrow aspect of entrepreneurs’ own social network. Using principal component analysis to aggregate various trust, norm and network-related variables to construct social capital variables with more than 150,000 firm-level observations for firm performance variables, this paper identifies an overall positive and significant effect of social capital on firm performance in Denmark. These effects are robust to firm-level social capital measures, different sampling years and alternative measures of firm performance (return on asset, current ratio, solvency ratio and profit margin) and network perspectives (Putnam and Olson).

KW - 512 Business and Management

KW - social capital

KW - firm performance

KW - Denmark

KW - Border regions

KW - Rural-urban divide

U2 - 10.1007/s00181-019-01731-3

DO - 10.1007/s00181-019-01731-3

M3 - Article

SP - 1

EP - 24

JO - Empirical Economics

JF - Empirical Economics

SN - 0377-7332

ER -