Social Capital and Innovative Performance in Developing Countries The Case of Ugandan Entrepreneurs
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Date
2009
Journal Title
Journal ISSN
Volume Title
Publisher
Georgia Institute of Technology
Abstract
This paper examines the relationships between the characteristics of
networks of small scale entrepreneurs and their innovative
performance in a developing country context. It is based on a survey
of entrepreneurs held in Uganda in May 2008. Networks represent
social capital that can contribute to economic success and innovative
performance. But sometimes networks can also act as obstacles to
innovation. In the literature there are two opposing strands. The line
of research initiated by Coleman points to the advantages of being
embedded in tightly knit networks, which provide trust, support and
access to innovation. Burt emphasizes the disadvantages and
constraints of closed and dense networks, where many relationships
are redundant and actors are isolated from the outside world. This
paper applies these theories in a developing country setting, where
they have so far not been studied. It provides an empirical synthesis
between the Burt and the Coleman perspective. The relationship
between network constraints and innovative performance is found to
be curvilinear. Increasing density and constraint initially has positive
effects on innovative performance, but beyond an optimum negative
effects start to prevail. Network size and human capital have positive
effects on innovative performance.
Description
Keywords
Social Capital, Developing Countries, Ugandan Entrepreneurs
Citation
Rooks, G., Dolech, D., Szirmai, A., & Serwanga, A. (2009, October). Social capital and innovative performance in developing countries: The case of Ugandan entrepreneurs. Georgia Institute of Technology.