Abstract

Social capital can be defined as the totality of resources by virtue of possessing social ties. Grounded along the previous research, this research examines the relation between the social capital of woman entrepreneurs and their small companies’ market performance mediated by competitive advantages. A survey of 257 entrepreneurs who is woman in Korea found that structural social capital and cognitive, social capital positively influence both differentiation advantage and cost advantage. The empirical results also indicate that those advantages affect market performance significantly. However, the impacts of relational social capital are not significant.

The main theoretical contribution of this study is that it confirms the importance of social capital for woman entrepreneurs. It also supports the relevance of social capital in producing competitive advantages which lead to a better market performance. This study provides woman entrepreneurs in SMBs with managerial implications. The result show that woman entrepreneurs can create business advantage by creating social ties and promoting social capital.

 

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