THE IMPACT OF SOCIAL CAPITAL ON OPEN INNOVATION: THE TUNISIAN SMEs CASE

Abstract

Given that few studies have focused on the relationship between social capital, open innovation and firm performance, particularly in small- and medium-sized enterprises (SMEs), we decided to extend this line of research. Thus, we tried to focus on social capital as a key element of informal cultural norms and to study its impact on open innovation in these firms and consequently on their performance. Through a review of the literature, we were able to develop the existing relationships between these three concepts and design our theoretical model. In accordance with a positivist posture, we adopted a hypothetical-deductive approach and a quantitative empirical validation method. In order to test our conceptual model and to analyse the results of the study carried out with 67 Tunisian SMEs of the mechanical and metallurgical industries, we used the Structural Equations Method and the Neural Networks Method. The results of this research indicate that social capital significantly influences open innovation which in turn positively influences the performance of SMEs. Specifically, this study contributes to resource theory and social capital theory by first confirming that intangible resources and capabilities, associated with social capital and open innovation are valuable to SME performance. In addition to the theoretical implications, the results of this study also provide important guidance to practitioners regarding strategic direction, in that SMEs should deliberately use their limited administrative capabilities and intangible resources to support business performance. As SMEs play an important role in building, maintaining, and evolving innovation ecosystems and contribute significantly to a country’s economic growth, our research can offer significant policy implications for Tunisian SMEs to improve their innovation performance through OI strategies.