Patrick A. Saparito is an Assistant Professor in the Department of Management at Saint Joseph’s University, Philadelphia, PA, USA.
Bureaucratic Systems' Facilitating and Hindering Influence on Social Capital
Article first published online: 22 MAR 2013
© 2013 Baylor University
Entrepreneurship Theory and Practice
Special Issue: Social Capital and Entrepreneurship
Volume 37, Issue 3, pages 625–639, May 2013
How to Cite
Saparito, P. A. and Coombs, J. E. (2013), Bureaucratic Systems' Facilitating and Hindering Influence on Social Capital. Entrepreneurship Theory and Practice, 37: 625–639. doi: 10.1111/etap.12028
The authors thank Duane Ireland and Luis Gomez-Mejia for their helpful comments on earlier drafts of this manuscript.
- Issue published online: 16 APR 2013
- Article first published online: 22 MAR 2013
This study demonstrates how banks' bureaucratic systems (i.e., formalization, management continuity, customer orientation) are associated with social capital's relational and cognitive dimensions. We collected survey data from a matched sample of 884 small- and medium-sized enterprises (SME) executives and 217 bank managers across 22 banks to test hypothesized relationships. Our results showed that formalization is negatively associated with both dimensions of social capital, while management continuity and customer orientation are positively associated with them. These results are a first step in answering calls in the literature to study bureaucratic systems' influence on social capital. Theoretical and future research implications are discussed.