This research was supported financially by Spanish Ministry of Education and Science research project number ECO2008-04708/ECON. Thanks to Editor and anonymous JSBM referees for their helpful suggestions.
Social Networks: Effects of Social Capital on Firm Innovation
Article first published online: 24 MAR 2010
© 2010 International Council for Small Business
Journal of Small Business Management
Volume 48, Issue 2, pages 258–279, April 2010
How to Cite
Molina-Morales, F. X. and Martínez-Fernández, M. T. (2010), Social Networks: Effects of Social Capital on Firm Innovation. Journal of Small Business Management, 48: 258–279. doi: 10.1111/j.1540-627X.2010.00294.x
Francesc Xavier Molina-Morales is an associate professor at the Universitat Jaume I in Castellon, Spain.
María Teresa Martínez-Fernández is an associate professor at the Universitat Jaume I in Castellon, Spain.
- Issue published online: 24 MAR 2010
- Article first published online: 24 MAR 2010
This paper aims to introduce some specific insights regarding social networks and the geographical proximity of firms in order to investigate factors involved in the innovation of firms. In particular, this study reviews ideas from the industrial district literature by analyzing the role played by the dimensions of social capital, that is, social interactions, trust, shared vision and involvement of local institutions, in the process and product innovation of firms inside the district. This paper draws on an analysis comparing district members and nonmembers based on a sample of 220 manufacturing firms in the Valencia Region (Spain). Findings suggest a positive association between district affiliation, social capital and involvement of local institutions and innovation that can offer relevant prescriptions for policy makers and individual entrepreneurs.