Social Capital on Firm Performance: The Role of Knowledge Sharing Behavior As Mediation

Abstract

Purpose: The goal of this research is to investigate how social capital, knowledge sharing behavior, and firm performance are related. Not only that, this study also revealed the behavior of sharing knowledge in mediating the relationship between social capital and firm performance. Several previous researches have explained that social capital can be one of the main factors in improving company performance. Business actors use social capital to build social networks, norms and beliefs that provide space to act together in achieving business goals.   Method/design/approach: This research was conducted in East Java. In accordance with the purpose of this research, it is aimed at SMEs who have business operations in the East Java region. The respondent criteria used include those recorded by the Department of Industry and Trade in East Java who started the business one year and are still active today. Purposive sampling was used, and as many as 137 samples were obtained. Data collection using questionnaires distributed online, with data analysis tools used SEM-PLS.   Results and conclusion: The study found a relationship between social capital, knowledge sharing behavior, and firm performance. Knowledge-sharing behavior helps to bridge the gap among both social capital and firm performance. The significance of social capital and knowledge sharing behavior in improving business or firm performance is widely acknowledge.   Research implications: Based on these findings, the role of MSME actors is to provide information and knowledge that is very necessary in running and developing a business.   Originality/value: This study found that knowledge-sharing behavior can mediate the relationship between social capital and firm performance. Knowledge sharing behavior can help increase the impact of social capital on firm performance, by improving relationships and connectivity between staff, groups and organizations.