THE SOCIAL CAPITAL, CORPORATE RESILIENCE AND COMPETITIVENESS DURING PANDEMIC: INDONESIA’S MARINE TRANSPORTATION SERVICES COMPANIES CASE STUDY
-
DOI:
https://doi.org/10.56127/ijme.v2i2.607Keywords:
social capital, business resilience, competitivenessAbstract
Corporate resilience and competitiveness during a pandemic are largely determined by how the company manages its resource capital. This study examined how corporate resilience and competitiveness of marine transportation service companies that rely on social capital with a review point of view from the theory of dynamic capabilities and the resource base-view theory. Using an online method survey with a sample of 446 marine transportation service companies throughout Indonesia. The data were analyzed using multivariate analysis with GSCA application (generalized structured component analysis) and multigroup analysis to examine company age and company size as variable control. The results showed that social capital was associated with corporate resilience and competitiveness as well. The result also showed that corporate resilience was not associated with competitiveness. Meanwhile, in terms of company size, it was associated with a small company. On the contrary, competitiveness was associated with corporate resilience. This study contributes a new empirical finding to the dynamic capability theory and resource base view-based (RBV) competitiveness theory. This study also contributes to the practical implication that social capital in the form of the strength of relations with external is useful for competitiveness and in maintaining the sustainability of the company.
References
Abeysekara, N., Wang, H., & Kuruppuarachchi, D. 2019. Effect of supply-chain resilience on firm performance and competitive advantage: A study of the Sri Lankan apparel industry. Business Process Management Journal.
Argote, L., & Ingram, P. 2000. Knowledge transfer: A basis for competitive advantage in firms. Organizational behavior and human decision processes, 82(1), 150-169.
Barney, J. 1991. Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.
Cappiello, G., Giordani, F., & Visentin, M. 2020. Social capital and its effect on networked firm innovation and competitiveness. Industrial Marketing Management, 89, 422-430.
Carmen, E., Fazey, I., Ross, H., Bedinger, M., Smith, F. M., Prager, K., ... & Morrison, D. 2022. Building community resilience in a context of climate change: The role of social capital. Ambio, 1-17.
Carmona-Lavado, A., Cuevas-Rodríguez, G., & Cabello-Medina, C. 2010. Social and organizational capital: Building the context for innovation. Industrial marketing management, 39(4), 681-690.
Chin, N., Thuan, N. 2020. The indirect effect of social capital on performance through resilience capability-The case of State-Capital Enterprises in Vietnam (SCE). HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE-ECONOMICS AND BUSINESS ADMINISTRATION, 10(1), 52-61.
Chukwunonso, N. J., Ebuka, A. A., Ezinne, K. M., & Chinyelu, O. N. 2021. Social Capital as a Panacea for the Competitive Advantage of Brewing Firms in South-South Nigeria.
Coleman, J. S. (1988). Social capital in the creation of human capital. American journal of sociology, 94, S95-S120.
Fathi, M., Yousefi, N., Vatanpour, H., & Peiravian, F. 2021. The Effect of Organizational Resilience and Strategic Foresight on Firm Performance: Competitive Advantage as Mediating Variable. Iranian Journal of Pharmaceutical Research: IJPR, 20(4), 497.
Jia, X., Chowdhury, M., Prayag, G., & Chowdhury, M. M. H. 2020. The role of social capital on proactive and reactive resilience of organizations post-disaster. International Journal of Disaster Risk Reduction, 48, 101614.
Kathiravan, C., Bhagavatham, P., Palanisamy, V., & Rajasekar, A. 2019. Influence of entrepreneurial creativity on competitive adnvantage in automobile engineering and technologies industries. International Journal of Advanced Science and Technology, 27(1), 166-172.
Larrañeta, B., Zahra, S. A., & González, J. L. G. 2012. Enriching strategic variety in new ventures through external knowledge. Journal of Business Venturing, 27(4), 401-413.
Markovic, S., Koporcic, N., Arslanagic-Kalajdzic, M., Kadic-Maglajlic, S., Bagherzadeh, M., & Islam, N. 2021. Business-to-business open innovation: COVID-19 lessons for small and medium-sized enterprises from emerging markets. Technological Forecasting and Social Change, 170, 120883.
McManus, S., Seville, E., Vargo, J., & Brunsdon, D. 2008. Facilitated process for improving organizational resilience. Natural hazards review, 9(2), 81-90.
Mondragón, I. G., Trejo, A. R., & Alquicira, A. M. 2022. Is organizational resilience a competitive advantage?. Mercados y Negocios: Revista de Investigación yy Análisis, (46), 57-82.
Nahapiet, J.,Ghoshal, S. 1998. Social capital, intellectual capital, and the organizational advantage. Academy of management review, 23(2), 242-266.
Ozanne, L. K., Chowdhury, M., Prayag, G., & Mollenkopf, D. A. 2022. SMEs navigating COVID-19: The influence of social capital and dynamic capabilities on organizational resilience. Industrial Marketing Management, 104, 116-135.
Polyviou, M., Croxton, K. L., & Knemeyer, A. M. 2019. Resilience of medium-sized firms to supply chain disruptions: the role of internal social capital. International Journal of Operations & Production Management.
Porter, M. E. 1985. Technology and competitive advantage. Journal of business strategy.
Prasetyo, P. E., Setyadharma, A., & Kistanti, N. R. 2020. Social Capital: The main determinant of MSME entrepreneurship competitiveness. International Journal of Scientific & Technology Research, 9(3), 6627-6637.
Putnam, R. D. 2015. Bowling alone: America’s declining social capital. In The city reader (pp. 188-196). Routledge.
Qamariah, I., & Muchtar, Y. C. 2019. Analyzing business performance of small and medium enterprises (SMEs) based on human capital, social capital and competitive advantage. Ecoforum Journal, 8(2).
Riolli, L., Savicki, V. 2003. Information system organizational resilience. Omega, 31(3), 227-233.
Robb, D. 2000. Building resilient organizations resilient organizations actively build and integrate performance and adaptive skills. OD practitioner, 32(3), 27-32.
Samson, A. T., Umar, D. M. 2020. An examination of the relationship between entrepreneurial creativity and firm performance. Journal of International Business and Management, 3(2), 1-18.
Sharma, S., Sharma, S. K. 2020. Probing the links between team resilience, competitive advantage, and organizational effectiveness: Evidence from information technology industry. Business Perspectives and Research, 8(2), 289-307.
Solimun, A., Fernandes, A.A. R., & Nurjannah. 2017. Metode Statistika Multivariat Pemodelan Persamaan Struktural (SEM) Pendekatan WarPLS. Universitas Brawijaya Press
Teece, D. J., Pisano, G., & Shuen, A. 1997. Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Torres, A. P., Marshall, M. I., & Sydnor, S. 2019. Does social capital pay off? The case of small business resilience after Hurricane Katrina. Journal of Contingencies and Crisis Management, 27(2), 168-181.
Tsai, W., Ghoshal, S. 1998. Social capital and value creation: The role of intrafirm networks. Academy of management Journal, 41(4), 464-476.
Välikangas, L., Romme, A. G. L. 2012. Building resilience capabilities at “Big Brown Box, Inc.”. Strategy & Leadership.
Whitehorn, G. 2010. Building organisational resilience in the public sector. In Comcover Insurance and Risk Management Conference (Vol. 21).
Widiyati, D., Hasanah, N. 2022. The Influence of Social Capital, Collaborative Competence and Entrepreneurial Behavior to Sustainable Competitive Advantage. Journal of Industrial Engineering & Management Research, 3(1), 99-106.
