THE RELATIONSHIP BETWEEN SOCIAL CAPITAL, DYNAMIC CAPABILITIES AND INNOVATION PERFORANCE: A CASE STUDY OF MICRO-, SMALL AND MEDIUM-SIZED FOREIGN TRADE ENTERPRISES IN HUNAN, CHINA

Abstract

This study aims to investigate the relationship between social capital (SC), dynamic capabilities (DC) and innovation performance (IP) of foreign trade MSMEs, and also explores the role of social capital and dynamic capabilities in improving the innovation performance of foreign trade MSMEs. The sample is 418 foreign trade MSMEs in Hunan, China. Purposive and convenience sampling methods were used to collect data in the form of questionnaires. The data were analyzed with the help of Smart-Partial Least Squares (PLS) version 3.3.2, combined with confirmatory factor analysis and PLS structural equation modeling. The results show that SC directly affects the IP of foreign trade enterprises. The study also shows that dynamic capabilities (DC) have a partial mediating effect between SC and IP of foreign trade enterprises. Compared with the effect of SC on IP, the effect of DC on IP is also very significant. This study expands the research field of social capital, improves people's understanding of innovation performance from the perspective of foreign trade enterprises, further clarifies the mediating role of enterprise dynamic capabilities between social capital and innovation performance, and helps to enrich the theory and framework of social capital. The results of this study may help scholars and managers make full use of social capital to improve the innovation performance of small and medium-sized foreign trade enterprises.