Main Article Content
It is obvious that businesses in Thailand are facing with economic transformation. Thailand 4.0 policy became crucial for innovation-driven economy as to response to fast changing business environment. Social capital orientation is one of vital strategies which create a significant advantage. This study is designed to investigate the effect of social capital orientation on innovation performance via knowledge management capability and entrepreneurial capability which are used as mediating variables for testing their relationships. The data for this study was collected using a cross-sectional quantitative survey. The sample size using Tara Yamane sampling size is 400 small and medium enterprises in Thailand. The data collections are proportion of 6 provincial groups of SMEs and simple random sampling is applied to represent the entire data. The sample consists of managers, senior managers, and chief executive officer. Mail survey questionnaire was used as research instrument. Ordinary Least Square (OLS) multiple regression analysis is applied to test research hypotheses. Research results show that there are four dimensions of social capital orientation, including networking focus, awareness of trust, effective communication, and collaboration creation that have positive effect on knowledge management capability, entrepreneurial capability, and innovation performance. All social capital orientation dimensions can explain assumptions of knowledge management capability at 39.10%, entrepreneurial capability at 40.60% and innovation performance at 38.80%. Moreover, the independent variable such as networking focus is proved to fully support hypotheses. It can conclude that SMEs manager can achieve innovation performance through the developing of social capital orientation. Particularly, networking focus, awareness of trust and effective communication are the important intangible assets for SMEs in Thailand. Thus, the executives should increase networking focus, awareness of trust and effective communication to gain innovation for competitiveness.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
All rights reserved. Apart from citations for the purposes of research, private study, or criticism and review,no part of this publication may be reproduced, stored or transmitted in any other form without prior written permission by the publisher.
Adler, P. S. and Kwon, S. W. (2002). Social capital: prospects for a new concept. Academy of Management Review 27(1): 17-40.
Ahn, S. Y. and Kim, S. H. (2017). What makes firms innovative? The role of social capital in corporate innovation. Sustainability 9(9): 1564.
Armstrong, J. S. and Overton, T. S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing Research 14(3): 396-402.
Badriyah, N. and Noermijati, N. (2015). Social competence, human capital and entrepreneurial success (a study on the owner of fish trading business). Asia-Pacific Management and Business Application 3(3): 182-195.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management 17(1): 99-120.
Barney, J. B. and Hansen, M. H. (1994). Trustworthiness as a source of competitive Advantage. Strategic Management Journal 15(S1): 175-190.
Barney, J. B., Wright, M. and Ketchen, D. J. (2001). The resource-based view of the firm: ten years after 1991. Journal of Management 27(6): 625-641.
Bartsch, V., Ebers, M. and Maurer, I. (2013). Learning in project-based organizations: the role of project teams’ social capital for overcoming barriers to learning. International Journal of Project Management 31(2): 239-251.
Bengesi, K. M. K. and Le Roux, I. (2014a). Strategic entrepreneurial response of small and medium enterprises in developing economies. International Journal of Business and Management 9(2): 190-200.
Bengesi, K. M. K. and Le Roux, I. (2014b). The Influence of dimensions of networking capability in small and medium enterprise performance. International Journal of Business and Social Science 5(2): 189-200.
Carmeli, A. and Azeroual, B. (2009). How relational capital and knowledge combination capability enhance the performance of work units in a high technology industry. Strategic Entrepreneurship Journal 3(1): 85-103.
Chiocchio, F., Grenier, S., O'Neill, T. A., Savaria, K. and Willms, D. J. (2012). The effects of collaboration on performance: a multilevel validation in project teams. International Journal of Project Organisation and Management 4(1): 1-37.
Dičevskaa, S., Nikolovskib, P., Karadjovac, V., Zdravkoskid, I. and Menkinoski, G. (2016). Strategic Alliances and Innovations in the International Business. International Journal of Sciences: Basic and Applied Research 27(1): 57-64.
Dickson, P. H. and Weaver, K. M. (2011). Institutional readiness and small to medium sized enterprise alliance formation. Journal of Small Business Management 49(1): 126-148.
Ejdys, J. (2016). Entrepreneurial orientation vs. innovativeness of small and medium size enterprises. Journal of Engineering, Project, and Production Management 6(1): 13-24.
Eisenhardt, K. M. and Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal 21(10-11): 1105-1121.
Emerson, K., Nabatchi, T. and Balogh, S. (2012). An integrative framework for collaborative governance. Journal of Public Administration Research and Theory 22(1): 1-29.
Ghaleb, O. A. M., Mosleh, M. A. S. and Al-ariki, H. D. E. (2016). The role of social networking in knowledge management process: a review. International Research Journal of Engineering and Technology 3(12): 104-106.
Goldsmith, S. and Eggers, W. D. (2004). Governing by Network, the New Shape of the Public Sector. Washington DC: The Brooking Institution.
Grigorescu, A., Maria-Magdalena, L. and Al Zink, F. (2014). Communication-central vector in knowledge management. Management Strategies Journal 26(4): 538-548.
Hair, J. F., Black, B. B., Anderson, R. and Tatham, R. L. (2010). Multivariate Data Analysis. New Jersey: Pearson Education.
Hijazi, H. A. and Salamah, H. (2014). Impact of social capital on knowledge sharing at the public sector in Jordan. Information and Knowledge Management 4(1): 20-30.
Hoffman, J., Hoelscher, M. L. and Sherif, K. (2005). Social capital, knowledge management and sustained superior performance. Journal of Knowledge Management 9(3): 93-100.
Hung, C. L., Kuo, S. J. and Dong, T. P. (2013). The relationship between team communication, structure, and academic R and D performance: empirical evidence of the national telecommunication program in Taiwan. R and D Management 43(2): 121-135.
Husain, Z. (2013). Effective communication brings successful organizational change. The Business and Management Review 3(2): 43-50.
Jirawuttinunt, S. and Janepuengporn, K. (2012). Intellectual capital orientation and sustainable performance of medical service business: an empirical study of private hospitals in Thailand. International Journal of Strategic Management 12(3): 25-40.
Jirawuttinunt, S. and Jhundraindra P. (2018). The effect of human capital capabilities on entrepreneurial capabilities and the performance of Thailand's small and Medium enterprises. Humanities, Arts and Social Sciences Studies 18(2): 535-556.
Jones, A. L., Warner, B. and Kiser, P. M. (2010). The “New Kid” on the University Block: Been Wondering What People Mean When They Say “Social Entrepreneurship”? [Online URL: www.scup.org/phe.html] accessed on March 15, 2019.
Khoshnodifar, Z., Ghonji, M., Mazloumzadeh, S.M. and Abdollahi, V. (2016). Effect of communication channels on success rate of entrepreneurial SMEs in the agricultural sector (a case study). Journal of the Saudi Society of Agricultural Sciences 15(1): 83-90.
Kodila-Tedika, O. and Agbor, J. (2016). Does trust matter for entrepreneurship: evidence from a cross-section of countries. Economies 4(4): 1-17.
Lassen, A. H., Laugen, B. T. and Middel, R. (2008). Collaborative entrepreneurship: on the influence of internal and external collaboration on corporate entrepreneurial innovation. Paper presented at the 9th international CINET conference: radical challenges in innovation management: Continuous Innovation Network, Aalborg University, Denmark. September 7-9.
Lechner, C., Dowling, M. and Welpe, I. (2006). Firm networks and firm development: the role of the relational mix. Journal of Business Venturing 21(4): 514-540.
Lee, J. S. and Hsieh, C. J. (2010). A research in relating entrepreneurship, marketing capability, innovative capability and sustained competitive advantage. Journal of Business and Economics Research 8(9): 109-119.
Lira, L. (2016). The effect of collaboration on performance in public management: evidence from community policing. University of Kansas. [Online URL: https://kuscholarworks.ku.edu/handle/1808/22470] accessed on January 6, 2020.
Louhiala-Salminen, L. and Kankaanranta, A. (2011). Professional communication in a global business context: the notion of global communicative competence. IEEE Transactions on Professional Communication 54(3): 244-262.
Lumpkin, G. T. and Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: the moderating role of environment and industry life cycle. Journal of Business Venturing 16(3): 429-451.
Miles, E. W., Patrick, S. L. and King, W. C. (1996). Job level as systematic variable in predicting the relationship between supervisory communication and job satisfaction. Journal of Occupational and Organisational Psychology 69(3): 277-289.
Nahapiet, J. and Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage, Academy of Management Review 23(2): 242-266.
Nonaka, I. and R. Toyama (2003). The knowledge-creating theory revisited: knowledge creation as a synthesizing process. Knowledge Management Research and Practice 1(1): 2-10.
Nunnally, J. C. and Bernstein, I. H. (1994). Psychometric Theory. New York: McGraw-Hill.
O’Leary, R. and Vij, N. (2012). Collaborative public management: where have we been and where are we going? The American Review of Public Administration 42(5): 507-522.
Office of Small and Medium Enterprises Promotion. (2017). Executive Summary White Paper on Small and Medium Enterprises 2017. [Online URL: http://www.industry.go.th/psd/index.php/2016-05-02-05-17-59/item/view/4061_06092e25c38dc85a170c6bde4a26ddfe] accessed on March 17, 2019.
Oly Ndubisi, N. and Iftikhar, K. (2012). Relationship between entrepreneurship, innovation and performance: comparing small and medium‐size enterprises. Journal of Research in Marketing and Entrepreneurship 14 (2): 214-236.
Paliszkiewicz, J., Gołuchowski, J. and Koohang, A. (2015). Leadership, trust, and knowledge management in relation to organizational performance: developing an instrument. Online Journal of Applied Knowledge Management 3(2): 19-35.
Parvaneh, R. (2017). The relationship between strategic knowledge management and organizational innovation (case study: Bushehr’s Medical Sciences University and Health Care Center). International Review of Management and Marketing 7(3): 150-155.
Patma, T. S., Djajanto, L. and Mauludin, H. (2017). The Relationship between knowledge management capabilities and product innovation and its impact on marketing performance. Paper presented at the 2nd international conference on accounting, management, and economics (ICAME-2017). Makassar. October 10.
Pittaway, L., Robertson, M., Munir, K., Denyer, D. and Neely, A. (2004). Networking and innovation: a systematic review of the evidence. International Journal of Management Reviews 5/6(3and4): 137-168.
Pratono, A. H. and Mahmood R. (2014). Social capital and firm performance: moderating effect of environmental turbulence. Asian Social Science 10(19): 59-68.
Puffer, S., McCarthy, D. and Boisot, M. (2010). Entrepreneurship in Russia and China: the impact of formal institutional voids. Entrepreneurship Theory and Practice 34(3): 441-467.
Putnam, R. (2001). Social capital: measurement and consequences. Canadian Journal of Policy Research 2(1): 41-52.
Rastgoo, P. (2017). The impact of organizational culture on creativity: the mediating role of knowledge management (case study: medical sciences and health services university in Bushehr). International Review of Management and Marketing 7(4): 83-90.
Renzl, B. (2008) Trust in management and knowledge sharing: the mediating effects of fear and knowledge documentation. Omega 36(2): 206-220.
Rodríguez-Gutiérrez, M. J., Moreno, P. and Tejada, P. (2015). Entrepreneurial orientation and performance of SMEs in the services industry. Journal of Organizational Change Management 28(2): 194-212.
Rufai, I. A. (2014). The impact of communication technologies on the performance of SMEs in a developing economy: Nigeria as a Case Study. The Electronic Journal of Information Systems in Developing Countries 65(1): 1-22.
Salih, A., Salameh, H., Hijazi, H. I. and Zaid, M. A. (2015). The Role of knowledge management in developing the characteristics of entrepreneurial organization entrepreneur styles as moderator variables (applied study in the Jordanian pharmaceutical manufacturing sector). International Journal of Small Business and Entrepreneurship Research 3(7): 1-16.
Savoiu, G. (2016). Enterprise, Entrepreneur and Entrepreneurship: The Main Semantic Chain in Contemporary Economics. [Online URL: oaji.net/articles/2014/941-403074429.pdf.] accessed on December 26, 2016.
Setyawati, S. M., Shariff, M. N. M. and Saud, M.B. (2011). Effects of learning, networking and innovation adoption on successful entrepreneurs in central Java, Indonesia. International Journal of Business and Social Science 2(5): 145-156.
Shi, H. X., Shepherd, D. M. and Schmidts, T. (2015). Social capital in entrepreneurial family businesses: the role of trust. International Journal of Entrepreneurial Behaviour and Research 21(6): 814-8841.
Shonubi, A. O. and Akintaro, A. A. (2016). The impact of effective communication on organizational performance. The International Journal of Social Sciences and Humanities Invention 3(3): 1904-1914.
Siau, K. and Shen, Z. (2003). Building consumer trust in mobile commerce. Communications of the ACM 46(4): 91-93.
Soraperra, I., Weisel, O., Zultan, R., Kochavi, S., Leib, M., Shalev, H. and Shalvi, S, (2017). The bad consequences of teamwork. Economics Letters 160(1): 12-15.
Stuart, T. E., and Sorenson, O. (2007). Strategic networks and entrepreneurial ventures. Strategic Entrepreneurship Journal 1(3-4): 211-227.
Sundaramurthy, C. (2008). Sustaining trust within family businesses. Family Business Review 21(1): 89-102.
Swan, J., Newell, S., Scarbrough, H. and Hislop, D. (1999). Knowledge management and innovation: networks and networking. Journal of Knowledge Management 3(4): 262-275.
Taleghani, M. (2011). Knowledge management and organizational entrepreneurship: organization of education in Guilan province. International Journal of Information and Education Technology 1(5): 389-391.
Titang, F. (2013). The Impact of Internal Communication on Employee Performance in an Organization. [Online URL: https:/ssrn.com/abstract=286567] accessed on November 15, 2019.
Tripopsakul, S. (2016). The study of entrepreneurial opportunities seeking in entrepreneurial process: the evidence from GEM data. NIDA Business Journal 19(1): 45-64.
Ulibarri, N. (2015). Collaboration in federal hydropower licensing: impacts on process, outputs, and outcomes. Public Performance and Management Review 38(4): 578-606.