Social capital as competitive resource - a driver towards sustained competitive advantage among manufacturing MSMEs in emerging markets
Abstract
The strength of an emerging economy are the Micro, Small and Medium Enterprises as they paramount the economy to a greater extent. Since, MSMEs plays a greater role in the creation of wealth in advanced countries, there shall be justification on the less contribution of the same in developing economy. India as a developing economy should foster their industrial productivity and manufacturing MSMEs have a major role. It is being argued that the micro and small firms are exposed to sickness to a larger extent due to resource scarcity (Mehta & Rajan, 2017). The present study analyses social capital as a resource from structural social capital dimensions of MSMEs with respect to Government organizations and commercial banks for strengthening social capital of manufacturing MSMEs. The study is conducted based on 90 manufacturing MSMEs in Kerala.
References
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17 (1), 99–120.
Bates, T. (1990). Entrepreneur Human Capital Inputs and Small Business Longevity. The Review of Economics and Statistics, 72 (4), 551-559.
Beck, T., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30 (11), 2931–2943.
‘Björn, J. (2004). Exploring Outsourcing Decisions using the Resource-based view of the firm. In BIR 2004 - 3rd International Conference on Perspectives in Business Informatics Research (pp. 1-16). Jönköping: Lund University. Retrieved from https://portal.research.lu.se/portal/files/6017616/1488424.pdf.
Carraresi, L., Mamaqi, X., Albisu, L. M., & Banterle, A. (2012). Strategic Capabilities and Performance: An Application of Resource-Based View in Italian Food SMEs. Pp. 186-209 in U. Rickert & G. Schiefer (Eds.), System Dynamics and Innovation in Food Networks, Boon, DE: Universität Bonn-ILB Press.
Claridge, T. (2018). Dimensions of Social Capital - structural, cognitive, and relational. Social Capital Research, 1-4. Retrieved from https://d1fs2th61pidml.cloudfront.net/wp-content/uploads/2018/01/Dimensions-of-Social-Capital.pdf?x49412.
Conner, K.R., & Prahalad, C.K. (1996). A Resource-Based Theory of the Firm: Knowledge Versus Opportunism. Organization Science, 7 (5), 477–501.
de la Torre, A., Martínez Pería, M.S., & Schmukler, S.L. (2010). Bank involvement with SMEs: Beyond relationship lending. Journal of Banking & Finance, 34 (9), 2280–2293.
De, D. (2001). ‘Fostering Entrepreneurship in Europe.’ Pp. 107-128 in Entrepreneurship policy for the Future. A. Lundstrom & L. Stevenson, Stockholm, SE: Swedish Foundation for Small Business Research.
Dollinger, M. (1999). Entrepreneurship (2nd ed., pp. 1-562). U.S.A.: Prentice Hall. Retrieved from https://campus.globalnxt.edu.my/FileRepository/Community/3079/148440/doc/Textbook.pdf.
Government of India (2011). Annual report of Ministry of Micro, Small and Medium Enterprises 2010–11. Ministry of Micro, Small and Medium Enterprises, New Delhi, India. Retrieved from http://msme.gov.in/MSME-Annual-Report2010-11-English.pdf.
Grant, R. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3), 114-135. doi: 10.2307/41166664.
Greene, P.G., Brush, C.G., & Brown, T.E. (1997). Resources in Small Firms: An Exploratory Study. Journal of Small Business Strategy, 8 (2), 25–40.
Kerala State Planning Board. (2018). ECONOMIC REVIEW 2017 (pp. 1-412). Thiruvananthapuram: Government of Kerala. Retrieved from http://spb.kerala.gov.in/ER2017/web_e/index.php.
Mehta, Y., & Rajan, A.J. (2017). Manufacturing Sectors in India: Outlook and Challenges. Procedia Engineering, 174, 90–104.
Ministry of MSME. (2017). Annual report 2017-18. Retrieved from Government of India website: (https://msme.gov.in/sites/default/files/Annualrprt.pdf)
Mukherji, R. (2009). The State, Economic Growth, and Development in India. India Review, 8(1), 81–106.
Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23 (2), 242–266.
Ngatno, Apriatni, E.P., & Widayanto (2016). Human Capital, Entrepreneurial Capital and SME’s Performance of traditional herbal industries in Central Java, Indonesia: The Mediating Effect of Competitive Advantage. Archives of Business Research, 4 (4), 9-25.
Peter, E.O., & Inegbenebor, A. (2009). Capacity of SMEs in Nigeria to Access Institutional Equity Finance. Research Journal of Business Management, 3 (1), 1–5.
Reynolds, P., Bygrave, W., Autio, E., Cox, L., & Hay, M. (2002). Global Entrepreneurship Monitor 2002 Executive Report (pp. 1-44). London: Ewing Marion Kauffman Foundation. Retrieved from http://file:///C:/Users/User/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/1313076587GEM_2002_Global_Report.pdf.
Schultz, T.W. (1971). Investment in human capital : the role of education and of research. London, UK: The Free Press.
Shihadeh, F., Naradda Gamage, S., & Hannoon, A. (2019). The causal relationship between SME sustainability and banks’ risk. Economic Research-Ekonomska Istraživanja, 32(1), 2743-2760. doi: 10.1080/1331677x.2019.1655465.
Simbi, R. (2004). National Economic Consultative Forum. Report on the Policy Implementation Workshop For SMEs 25-27 October 2004. (Masters thesis). University of Nairobi. Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/97142/Simbi%20Raymond_Multi-agent%20Based%20Risk%20Management%20Platform%20for%20Small%20and%20Micro-enterprise%20Businesses%20in%20Kenya.pdf?sequence=1&isAllowed=y
Singh, J. (2013). Analysis of Trends in the Manufacturing Growth in Last Five years (2006-07 to 2011-12) (pp. 1-59). New Delhi: Ministry of Commerce & Industry.
UNCTAD. (2001). Improving the Competitiveness of SMEs in Developing Countries, 1–149. Retrieved from: https://unctad.org/en/Docs/itetebmisc3_en.pdf
Verheul, I., Wennekers, S., Audretsch, D., & Thurik, T. (2001). An Eclectic Theory of Entrepreneurship: Policies, Institutions and Culture (pp. 1-48). Amsterdam and Rotterdam: Tinbergen Institute. Retrieved from http://hdl.handle.net/10419/85867.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5 (2), 171-180.
The Author wishes to submit the Work to SJM for publication. To enable SJM to publish the Work and to give effect to the parties’ intention set forth herein, they have agreed to cede the first right to publication and republication in the SJM Journal.
Cession
The Author hereby cedes to SJM, who accepts the cession, to the copyright in and to the paper.
The purpose of the cession is to enable SJM to publish the Work, as first publisher world-wide, and for republication in the SJM Journal, and to grant the right to others to publish the Work world-wide, for so long as such copyright subsists;
SJM shall be entitled to edit the work before publication, as it deems fit, subject to the Authors approval
The Author warrants to SJM that:
- the Author is the owner of the copyright in the Work, whether as author or as reassigned from the Author’s employee and that the Author is entitled to cede the copyright to SJM;
- the paper (or any of its part) is not submitted or accepted for publication in any other Journal;
- the Work is an original work created by the Author;
- the Author has not transferred, ceded, or assigned the copyright, or any part thereof, to any third party; or granted any third party a licence or other right to the copyright, which may affect or detract from the rights granted to SJM in terms of this agreement.
The Author hereby indemnifies the SJM as a body and its individual members, to the fullest extent permitted in law, against all or any claims which may arise consequent to the warranties set forth.
No monetary consideration shall be payable by SJM to the Author for the cession, but SJM shall clearly identify the Author as having produced the Work and ensure that due recognition is given to the Author in any publication of the Work.
Should SJM, in its sole discretion, elect not to publish the Work within 1 year after the date of this agreement, the cession shall lapse and be of no further effect. In such event the copyright shall revert to the Author and SJM shall not publish the Work, or any part thereof, without the Author’s prior written consent.