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The role of social capital in augmenting strategic renewal of SMEs: does entrepreneurial orientation and organizational flexibility really matter?

Samar Hayat Khan (Department of Management Sciences, Hazara University, Mansehra, Pakistan) (Galiyat Development Authority, Ministry of Tourism Khyber Pakhtunkhwa, Abbottabad, Pakistan)
Abdul Majid (Department of Management Sciences, University of Haripur, Pakistan)
Muhammad Yasir (Department of Management Sciences, Hazara University, Mansehra, Pakistan)
Asad Javed (Department of Management Sciences, Hazara University, Mansehra, Pakistan)
Hassan Ahmed Shah (Department of Management Sciences, Khushal Khan Khattak University Karak, Karak, Pakistan)

World Journal of Entrepreneurship, Management and Sustainable Development

ISSN: 2042-5961

Article publication date: 19 February 2021

Issue publication date: 29 April 2021

569

Abstract

Purpose

The objective of this study is to evaluate the key issues that how social capital augments the initiation of strategic renewal through the mediating role of entrepreneurial orientation and the moderating role of organizational flexibility. In the context of Small and Medium Enterprises (SMEs) of developing economies, the study developed and tested the theoretical model of strategic renewal for analyzing its major outputs.

Design/methodology/approach

This study utilized cross-sectional design and employ quantitative approach. The data were collected from the owner, managers and executive directors of pharmaceutical SMEs of Pakistan. The study used statistical analysis of correlation and regression for the analysis of data.

Findings

The study discovered that entrepreneurial orientation mediates the positive relationship of social capital and strategic renewal. Moreover, high organizational flexibility strengthens the association between social capital and strategic renewal of SMEs.

Originality/value

This research contributes to the body of knowledge by providing empirical evidence that how to thrive the mechanism of strategic renewal. The study further provides understanding of the effects of organizational social capital, entrepreneurial orientation and organizational flexibility on strategic renewal.

Keywords

Citation

Khan, S.H., Majid, A., Yasir, M., Javed, A. and Shah, H.A. (2021), "The role of social capital in augmenting strategic renewal of SMEs: does entrepreneurial orientation and organizational flexibility really matter?", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 17 No. 2, pp. 227-245. https://doi.org/10.1108/WJEMSD-04-2020-0029

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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