Firm-Specific Managerial Experience and the Social Capital–Performance Relationship in a Sub-Saharan African Transition Economy

Abstract

The authors examine the direct and moderating effects of firm-specific managerial experience on the relationship between social capital and performance. Using data from Ghana, the findings show that social capital from bureaucratic officials and community leaders, as well as firm-specific managerial experience, have a positive influence on performance, while social capital from politicians has a negative influence on firm performance. Furthermore, firm-specific managerial experience positively moderates the relationship between (a) social capital from politicians and performance, and (b) social capital from community leaders and performance. Therefore, firm-specific managerial experience attenuates the detrimental effects of social capital from politicians on performance. The findings contribute to knowledge in the social capital and resource-based view literature.