The Relation Between Social Capital And Innovation Capacity To Business Performance: A Case Study Of Small And Medium Enterprises In Mekong Delta, Viet Nam

Abstract

The objective of this study was to examine the relationship between Social capital and innovation capacity through business performance in small and medium enterprises in the Mekong Delta, Vietnam. This study concentrates on exploring social capital on business performance in the context of of small and medium enterprises in the Mekong Delta, Vietnam. The study was conducted by surveying 350 managers who are members of the Board of Directors who directly run small and medium enterprises in the Mekong Delta, Vietnam collected from November 2021 to May 2022. The authors used confirmatory factor analysis (CFA) to determine the most common observed variables of each factor. Research results indicated that social capital impacted business performance. These findings kindly contribute to theoretical and practical bricks of building determinants of Social Capital and Business Performance in small and medium enterprises in the Mekong Delta, Vietnam. From the above results, the research has suggested managerial implications to further improve the investment in developing Social Capital and Business Performance to achieve high business performance in small and medium enterprises in the Mekong Delta, Vietnam in the future.