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Can social capital explain business performance in Denmark?
Citation
Wang, C and Steiner, B, Can social capital explain business performance in Denmark?, Empirical Economics pp. 1-24. ISSN 0377-7332 (2019) [Refereed Article]
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Copyright Statement
Copyright 2019 Springer-Verlag GmbH Germany, part of Springer Nature. This is a pre-print of an article published in Empirical Economics. The final authenticated version is available online at: https://doi.org/10.1007/s00181-019-01731-3
DOI: doi:10.1007/s00181-019-01731-3
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 (Putnam and Olson groups).
Item Details
| Item Type: | Refereed Article |
|---|---|
| Keywords: | social capital, firm performance, Denmark, border regions |
| Research Division: | Commerce, Management, Tourism and Services |
| Research Group: | Marketing |
| Research Field: | Marketing Research Methodology |
| Objective Division: | Economic Framework |
| Objective Group: | Management and Productivity |
| Objective Field: | Marketing |
| UTAS Author: | Wang, C (Dr Cong Wang) |
| ID Code: | 132420 |
| Year Published: | 2019 |
| Deposited By: | TSBE |
| Deposited On: | 2019-05-07 |
| Last Modified: | 2019-09-12 |
| Downloads: | 2 View Download Statistics |
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