The Myth of Social Capital in Development of Small and Medium Enterprises: A Case Study of Handloom Industry at Peshawar Valley

DR. MUJIB UR RAHMAN, ABDUR RAHMAN, Shah Raza Khan
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Abstract

The purpose of this study is to analyze the role of social capital in development of small and medium enterprises in Peshawar Valley. Relational capital such as business relational capital and social relational capital is used as tools of social capital. Firm performance is measured using attributes like profitability and future viability. A cross sectional, descriptive and analytical research design is adopted using a representative sample of 169 manufacturing weavers. Data is collected using a self-administered questionnaire. The findings reveal a significant and positive relationship between relational capitals, firm performance. It is recommended that investment in social capital improves firm performance with a positive impact on wellbeing of overall community. Therefore, managers should intensify initiatives to encourage greater understanding and acceptance on relational capital elements, employ a viable relational capital composition that includes building strong social relational ties with the community and government and pay attention to customers and employees in order to identify their needs and provide them with optimal values. This is likely to increase firm performance and development the small and medium enterprises.
中小企业发展中的社会资本神话——以白沙瓦河谷手机业为例
本研究的目的是分析社会资本在白沙瓦河谷中小企业发展中的作用。企业关系资本、社会关系资本等关系资本是社会资本的工具。企业绩效是用盈利能力和未来生存能力等属性来衡量的。采用横断面、描述性和分析性的研究设计,选取了169个制造业织造者的代表性样本。数据是通过自我管理的问卷收集的。研究结果表明,关系资本与企业绩效之间存在显著的正相关关系。建议社会资本投资提高企业绩效,并对整个社区的福祉产生积极影响。因此,管理者应加强主动性,鼓励对关系资本要素的更大理解和接受,采用可行的关系资本构成,包括与社区和政府建立牢固的社会关系,并关注客户和员工,以确定他们的需求并为他们提供最佳价值。这有可能提高企业绩效和中小企业的发展。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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