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Article
Publication date: 9 October 2017

Geeta H. Patel

The purpose of this paper is to trace the history and legacy of Islamic finance (IF) in Sri Lanka in the context of the emergence of life finance. It tracks the social life of…

Abstract

Purpose

The purpose of this paper is to trace the history and legacy of Islamic finance (IF) in Sri Lanka in the context of the emergence of life finance. It tracks the social life of finance through a genealogy of trust and capital.

Design/methodology/approach

The methodology used is qualitative. It is an extended case study using conversations, company documents and newspaper archival research.

Findings

Trust, transparency and ethics must be understood locally to have salience. The implicit effect of locally understood ideas of trust that have been built into the movement of capital (via ethical branding and transparency in IF, education and social awareness) can reconfigure relationships between communities in a country that has been ravaged by war.

Research limitations/implications

There have been few studies on IF in Sri Lanka; this study will enrich those offerings. However, they must be understood in relation to the emergence of life finance.

Practical implications

This study presents a new viewpoint on the relationship between finance and social well-being and new categories through which to understand finance.

Social implications

The implicit effect of locally understood ideas of trust which have been built into movements of capital (via ethical branding and transparency in IF, education, socially aware) can reconfigure relationships between communities in a country that has been ravaged by war.

Originality/value

There have been few studies on Islamic Finance in Sri Lanka; this study will enrich those offerings. But they must be understood in relation to the emergence of life-finance in South Asia.

Details

Society and Business Review, vol. 12 no. 3
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 18 May 2020

Sladjana Cabrilo, Sven Dahms, Eugene Burgos Mutuc and Janita Marlin

The purpose of this study is to explore the moderating role of information technology (IT) practices in the increase of organizational capacity for generating innovation…

Abstract

Purpose

The purpose of this study is to explore the moderating role of information technology (IT) practices in the increase of organizational capacity for generating innovation performance from its relational (internal and external) capital and trust capital.

Design/methodology/approach

Survey data has been collected from 102 publicly listed enterprises in Taiwan and is analysed by using symmetric structural equation modelling–partial least squares (SEM–PLS) and asymmetric fuzzy set qualitative comparative analysis (fsQCA) techniques.

Findings

The findings derived from SEM–PLS show that internal relationships and trust embedded in firms' relationships play a significant role in the innovation performance of Taiwanese enterprises, and reveal a more closed approach to innovation. The results also confirm the important role of IT advancement in amplifying the effect of internal and external relationships and trust formation on innovation performance. One more interesting note, the integration of fsQCA demonstrates several configurations that lead to superior innovation performance.

Research limitations/implications

The study was limited to Taiwanese companies with at least 200 employees. It might well be that the economically significant small business sector has distinct relationships with stakeholders, trust building strategies and IT practices, and that innovation performance depends on other macroeconomic effects. This study combines symmetric (SEM–PLS) and asymmetric (fsQCA) techniques to improve our understanding of the complementarities between relational and trust capital, and IT practices, and identify configurations that could yield organizational benefits for innovation outcomes.

Practical implications

This study provides new knowledge about IT utilization in the workplace which practitioners may use to capitalize on internal and external networks and enhance innovation performance.

Originality/value

Exploring together intellectual capital (IC) components and IT practices, this study merges IC and knowledge management (KM) streams of literature and adds to the prominent discussion on how IC and technology-based KM together contribute to superior innovation performance. In introducing the notion of equifinality, and testing our hypothesis by applying fsQCA, we also provide new ground for methodological discussions in the field of innovation performance.

Details

Journal of Intellectual Capital, vol. 21 no. 5
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 30 June 2021

Deepak Chamola, Ajoy Kumar Dey, Arunaditya Sahay and Rahul Singh

The paper contributes to the long-standing interest in studying the relationship of social capital and trust. It examines the relationship between social capital and trust in a…

Abstract

Purpose

The paper contributes to the long-standing interest in studying the relationship of social capital and trust. It examines the relationship between social capital and trust in a producer company and the role of perceived benefits as a mediating variable.

Design/methodology/approach

A multistage sampling was done to collect data from 395 farmer members from five producer companies spread over three states of India. Through exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) latent constructs were mapped, and composite reliability and construct validity were established. PROCESS macro of Statistical Product and Service Solutions (SPSS) was used to probe relationship between social capital and member's trust and mediation effect of perceived benefit.

Findings

The authors’ research findings establish that the social capital has a positive and significant relationship with members' trust in a producer company and perceived benefit mediates this relationship.

Research limitations/implications

The paper contributes to reduce complexity of social capital theory by differentiating sources and benefits of social capital. It opens up the avenues of testing theoretically valid mediation effects of many other constructs.

Originality/value

The role of member's perceived benefits as a mediator between social capital and members' trust is a new knowledge to the literature of social capital.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 12 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 9 January 2017

Mahyudin Ahmad and Stephen G. Hall

The purpose of this paper is to attest whether generalized trust variable is the best proxy for social capital in explaining the latter’s effect on economic growth in a panel…

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Abstract

Purpose

The purpose of this paper is to attest whether generalized trust variable is the best proxy for social capital in explaining the latter’s effect on economic growth in a panel setting. Via a specially formulated theoretical framework, the authors also test whether the growth-effect of social capital is direct or indirect, and if it is indirect, can property rights be the link between social capital and growth.

Design/methodology/approach

The authors begin with testing the robustness of generalized trust variable in explaining the effect of social capital on growth and property rights. The authors then propose a number of trust-alternative variables that are shown to contain an element of trust based on theoretical arguments drawn from previous studies, to proxy for social capital and re-estimate its effect on growth and property rights. In this study, the authors use panel estimation technique, hitherto has been limited in social capital studies, which are capable of reducing omitted variable bias and time-invariant heterogeneity compared to the commonly used cross-sectional estimation.

Findings

First, the authors find that generalized trust data obtained by the World Value Survey (WVS) are unable to yield sufficiently robust results in panel estimation due to missing observations problem. Using the proposed trust-alternative variables, the estimation results improve significantly and the authors are able to show that social capital is a deep determinant of growth and it is affecting growth via property rights channel. The findings also give supporting evidence to the primacy of informal rules and constraints as proposed by North (2005) over the political prominence theory by Acemoglu et al. (2005).

Research limitations/implications

Generalized trust data obtained from the WVS, frequently used in majority of social capital studies to measure social capital, yield highly non-robust results in panel estimation due to missing observations problem. Future studies in social capital intending to use panel estimation therefore need to find trust-alternative variables to proxy for social capital, and this paper has proposed four such variables.

Originality/value

The use of panel estimation technique extends the evidence of social capital significance to economic growth and property rights, since the previous social capital studies rely heavily on cross-sectional estimation technique. Due to the availability of annual observations of the trust-alternative variables, this paper is able to find better results as compared to estimation using generalized trust data.

Details

International Journal of Social Economics, vol. 44 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 20 May 2022

Muliadi Muliadi, Mas'ud Muhammadiah, Kasma F. Amin, Kaharuddin Kaharuddin, Junaidi Junaidi, Berlin Insan Pratiwi and Fitriani Fitriani

This study aims to investigate how social capital (e.g. cognitive and relational) influences students’ trust (e.g. cognitive and affective) as mediator variables, affecting…

Abstract

Purpose

This study aims to investigate how social capital (e.g. cognitive and relational) influences students’ trust (e.g. cognitive and affective) as mediator variables, affecting students’ information sharing activity on Facebook.

Design/methodology/approach

The sample consists of 398 valid participants obtained through an online survey and using structural equation modeling (SEM) to test the research hypotheses.

Findings

The empirical results indicate that social capital has significant and positive effects on students’ trust (e.g. cognitive and affective-based trust), also mediator variables. Furthermore, the mediator variables partially mediate social capital and information sharing based on the concept of cognition-affection-behavior (CAB).

Research limitations/implications

This study was limited to Indonesian students. Therefore, future study is needed to analyze across cultures and regions. It can help practitioners, regulators and researchers to observe the dynamic behavior on the impact of social capital on social media users’ activities.

Practical implications

Education stakeholders (e.g. lecturers and teachers) can identify the students’ goal and rational concerns to improve their social capital and trust to share information. The government as a regulator needs to support students’ activities on social media to provide updated information regarding economic and social conditions during and after the COVID-19 pandemic.

Originality/value

This study contributes to the literature on virtual communities. Specifically, it considers how social capital influences trust, which subsequently affects information sharing based on the CAB context among Indonesian student’ Facebook users.

Details

VINE Journal of Information and Knowledge Management Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5891

Keywords

Article
Publication date: 23 August 2021

Marsus Suti and Harmita Sari

This paper aims to investigate how social capital (e.g. structural, cognitive and relational) influences trust (e.g. cognitive-/affective-based trust), which includes influencing…

Abstract

Purpose

This paper aims to investigate how social capital (e.g. structural, cognitive and relational) influences trust (e.g. cognitive-/affective-based trust), which includes influencing knowledge-sharing behavior for Indonesian Facebook users in the context of social networking sites.

Design/methodology/approach

Indonesian students were recruited for an online survey study. Structural equation modeling was used to test the research hypotheses.

Findings

Social capital has a crucial role in increasing cognitive-based trust and affective-based trust. Furthermore, affective-based trust is a partial mediator between social capital and knowledge-sharing behavior, whereas cognitive-based trust is a full mediator between social capital and knowledge-sharing behavior.

Research limitations/implications

This study is limited to Indonesian Facebook users. Future research needs to examine specific conditions, situational contexts and sub-cultures that may influence social capital, trust and knowledge-sharing behaviors of Facebook users in other parts of the world.

Practical implications

The education stakeholders can identify the user objectives and rational concerns to improve their social capital and trust and support their valuable and unique experiences to share knowledge.

Originality/value

This study contributes to the literature on virtual communities. Specifically, it considers how social capital influences trust, which subsequently affects knowledge-sharing behavior based on the uses and gratifications theory among Facebook users.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 53 no. 6
Type: Research Article
ISSN: 2059-5891

Keywords

Article
Publication date: 17 August 2020

Mai Thi Thanh Thai, Ekaterina Turkina and Amon Simba

Through utilizing social capital as an overarching concept, the purpose of this article is to investigate cross-country rates of business formation in the formal vs informal…

Abstract

Purpose

Through utilizing social capital as an overarching concept, the purpose of this article is to investigate cross-country rates of business formation in the formal vs informal sectors. Plus, empirically assess the impact of social capital constructs on the national rates of entrepreneurship.

Design/methodology/approach

Adopting a regression-oriented methodology, partial least squares (PLS), the study used a sample comprising 50 nations. National rates of registered and nonregistered business creation were utilized as endogenous variables. To determine the indigenous variables, constructs of social capital were measured which is consistent with the World Value Survey (WWS).

Findings

The results of this study show that in the formal and the informal sectors, social networking enables business creation with varying levels of impact. It establishes that institutional trust has a negative effect on informal business creation and a positive effect on business registration; interpersonal trust drives entrepreneurship in the informal sector but has less impact on business registration; norms of trustworthiness are related to business registration than informal business creation.

Practical implications

The findings of this research have theoretical and practical implications. They stimulate academic debate on the application of social capital constructs at the national level. The indications that social capital promotes business formation in both the informal and formal sectors can influence entrepreneurship policy development in many countries.

Originality/value

The originality of the results of this study lies in how it conceptualizes social capital as having direct impact on business creation in the informal vs formal sector. Thus, the findings elevated the conceptualization of social capital to the national level thereby enhancing knowledge on the entrepreneurship process as well as developmental economics.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 26 no. 8
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 15 March 2013

Lyndon Murphy

The purpose of this paper is to explore the relationship between social capital and the directors' duty to promote the success of the company and to foster business relationships…

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Abstract

Purpose

The purpose of this paper is to explore the relationship between social capital and the directors' duty to promote the success of the company and to foster business relationships, which is a comparatively under‐researched issue.

Design/methodology/approach

The approach taken focuses on the concept of social capital, its various forms and influence on business performance. Ultimately, the paper explores ways in which directors' duties as stated in s.172 (1) of the Companies Act 2006 may affect the building and maintenance of forms of social capital.

Findings

It seems that it is likely that by complying with s.172 (1) directors will build forms of social capital, which in turn will enhance the business performance of companies in aspects such as innovative activity, transaction costs, and productivity. Consequently, the building of social capital is likely to promote the success of the company.

Originality/value

It can be stated that s.172 (1) CA 2006, is a potentially paradigmatic move in the way in which company directors undertake their business and view their company's stakeholders (Dignam and Lowry). Davies appears to agree with this view commenting upon the “ideological significance” of the introduction of s.172. It certainly seems that the inclusion of a duty to consider the importance of fostering business relationships implicitly promotes the pursuit of social capital.

Details

International Journal of Law and Management, vol. 55 no. 2
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 17 January 2020

Kang Hu, Rong Hu, Ivan Sun and Yuning Wu

Public cooperation with the police is of great significance in the maintenance of social security and social harmony, but studies investigating the mechanisms of public…

Abstract

Purpose

Public cooperation with the police is of great significance in the maintenance of social security and social harmony, but studies investigating the mechanisms of public cooperation with the police in China are scarce. Using survey data obtained from Xiamen, China, the purpose of this paper is to examine the effects of social capital on willingness to cooperate with the police and their mediating mechanisms.

Design/methodology/approach

Data with 938 respondents were used in this study. Ordinary least squares regression models were used to test the influence of social capital on the willingness of the Chinese public to cooperate with the police and its mediating mechanisms.

Findings

The results show that associational life participation, social trust and neighborhood cohesion can all enhance public willingness to cooperate with the police by cultivating public spirit or trust in government, whereas participation in community collective resistance is negatively correlated with willingness to cooperate with the police. Theoretical explanations are offered to understand different effects of social capital elements on public cooperation with the police, and possible ways to foster such cooperation are discussed.

Originality/value

This paper takes the lead in examining the effects of social capital on willingness to cooperate with the police and their mediating mechanisms in China.

Details

Policing: An International Journal, vol. 43 no. 2
Type: Research Article
ISSN: 1363-951X

Keywords

Article
Publication date: 7 September 2015

Henry X. Shi, Deborah M. Shepherd and Torsten Schmidts

The purpose of this paper is to provide empirical insights to understanding trust as a relational form of social capital, and its effects on entrepreneurial processes, in small…

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Abstract

Purpose

The purpose of this paper is to provide empirical insights to understanding trust as a relational form of social capital, and its effects on entrepreneurial processes, in small- and medium-sized family businesses.

Design/methodology/approach

This paper adopts a qualitative case-study approach, with data from fieldwork interviews, observations, and secondary sources analysed by using interpretative methods.

Findings

Although multiple types of trust exist concurrently in small- and medium-sized Chinese family businesses, it is interpersonal trust on the basis of goodwill and competence that prevails, while contractual trust is weak and marginal. Three patterns of trusting relationships are identified, each of which has both positive and negative effects on entrepreneurship and innovation in family businesses. There is a potential “dark side” of trust, which incurs extra cost and commitment to small- and medium-sized family businesses in their entrepreneurial processes.

Research limitations/implications

Future research with larger sample sizes is suggested to generalise the insights, by using both qualitative and quantitative methods. More empirical work is needed to further clarify the antecedents of trust as a social capital and the potential “dark side” of trust in small- and medium-sized family businesses, particularly across generations.

Practical implications

Family business owner-managers should try to avoid relying on a single type of trust, which may incur extra costs to the entrepreneurial processes. They need to better understand why they trust certain actors in their business and social networks before assigning resources to specific business activities. Policy makers are suggested to recognise the “benefits” of the traditionally family-oriented values and that kinship-based trust is also a relational form of social capital and can produce entrepreneurial outcomes.

Originality/value

The paper critically reviews existing literature on social capital, trust, entrepreneurship, and family business at their point of intersection and identifies gaps and oversights. Drawing on case studies from China, the paper explores different patterns in which trust develops in second-generation small- and medium-sized Chinese family businesses and their varying effects on entrepreneurship.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 21 no. 6
Type: Research Article
ISSN: 1355-2554

Keywords

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