Patrick Akanpaaba, Ahmed Agyapong, Henry Kofi Mensah, S. Akomea
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Social capital and firm performance nexus: The role of new product development capability and environmental dynamism in an emerging economy
ABSTRACT This paper seeks to examine the argument that the social capital and market performance link is more pronounced when it is channelled through the new product development capability of the firm. The study further argues that the indirect effect of social capital on market performance, via new product development capability, is conditional upon levels of environmental dynamism. We tested the hypotheses using data from 313 managers and owners of small and medium-sized enterprises (SMEs) in Ghana. We analyzed the data using the conditional PROCESS analysis software, in SPSS 23.0, and structural equation modelling (SEM). We found that new product development capability partially mediates the relationship between social capital and market performance. The study further discovered that the indirect relationship between social capital and market performance is significantly enhanced at higher levels of environmental dynamism. This study's finding will help managers of SMEs understand the need to invest in building their social capital resource and the complementary new product development skills needed to improve firm performance.
期刊介绍:
The beginning of the Twenty First Century has witnessed Africa’s rise and progress as one of the fastest growing and most promising regions of the world. At the same time, serious challenges remain. To sustain and speed up momentum, avoid reversal, and deal effectively with emerging challenges and opportunities, Africa needs better management scholarship, education and practice. The purpose of the Africa Journal of Management (AJOM) is to advance management theory, research, education, practice and service in Africa by promoting the production and dissemination of high quality and relevant manuscripts. AJOM is committed to publishing original, rigorous, scholarly empirical and theoretical research papers, which demonstrate clear understanding of the management literature and draw on Africa’s local indigenous knowledge, wisdom and current realities. As the first scholarly journal of the Africa Academy of Management (AFAM), AJOM gives voice to all those who are committed to advancing management scholarship, education and practice in or about Africa, for the benefit of all of Africa. AJOM welcomes manuscripts that develop, test, replicate or validate management theories, tools and methods with Africa as the starting point. The journal is open to a wide range of quality, evidence-based methodological approaches and methods that “link” “Western” management theories with Africa’s indigenous knowledge systems, methods and practice. We are particularly interested in manuscripts which address Africa’s most important development needs, challenges and opportunities as well as the big management questions of the day. We are interested in research papers which address issues of ethical conduct in different African settings.