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Open AccessArticle

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

by 1 and 2,*
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.
Sustainability 2017, 9(9), 1564; https://doi.org/10.3390/su9091564
Received: 7 August 2017 / Revised: 24 August 2017 / Accepted: 31 August 2017 / Published: 3 September 2017
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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MDPI and ACS Style

Ahn, S.-Y.; Kim, S.-H. What Makes Firms Innovative? The Role of Social Capital in Corporate Innovation. Sustainability 2017, 9, 1564. https://doi.org/10.3390/su9091564

AMA Style

Ahn S-Y, Kim S-H. What Makes Firms Innovative? The Role of Social Capital in Corporate Innovation. Sustainability. 2017; 9(9):1564. https://doi.org/10.3390/su9091564

Chicago/Turabian Style

Ahn, Se-Yeon; Kim, So-Hyung. 2017. "What Makes Firms Innovative? The Role of Social Capital in Corporate Innovation" Sustainability 9, no. 9: 1564. https://doi.org/10.3390/su9091564

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