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Sustainability 2017, 9(9), 1564; doi:10.3390/su9091564

What Makes Firms Innovative? The Role of Social Capital in Corporate Innovation

1
Management Research Center, Seoul National University, 1 Kwanak-ro, Kwanak-gu, Seoul 08826, Korea
2
Department of Business, Baekseok University, 76, Munam-ro, Dongam-gu, Chenan-si 31965, Korea
*
Author to whom correspondence should be addressed.
Received: 7 August 2017 / Revised: 24 August 2017 / Accepted: 31 August 2017 / Published: 3 September 2017
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Abstract

This paper offers a social capital explanation for the purported relationship between human capital investment and an organization’s innovation capability. We argue that social capital plays a mediating role in the relationship between the level of individual knowledge of employees and organizations’ innovation capabilities. The mediating mechanism is attributed to the role of social capital in knowledge exchange and combination that help enhance knowledge creation. Using survey data of 319 manufacturing firms in Korea, we conducted structural equation modeling (SEM) analysis to verify the mediating role of social capital in firms’ innovation performance. The results demonstrated that relational and cognitive dimensions of social capital are important mediators in realizing organizational innovation performance. View Full-Text
Keywords: innovation capability; social capital; knowledge creation; human capital investment innovation capability; social capital; knowledge creation; human capital investment
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Ahn, S.-Y.; Kim, S.-H. What Makes Firms Innovative? The Role of Social Capital in Corporate Innovation. Sustainability 2017, 9, 1564.

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