Influence of dependence on social capital and operational performance: a study of the textile and clothing industry

Abstract

PurposeThe purpose of this study is to investigate empirically whether the presence of dependence influences the strength and direction of the relationship between social capital and operational performance.Design/methodology/approachThe authors tested two effects, moderator and mediator, of the dependence between social capital and operational performance in the buyer–supplier relationship in the supply chain. The authors use dependence as a dichotomous variable and empirically test the hypotheses using hierarchical linear regression from data collected from 117 industrial companies in Brazil.FindingsThe results show that although dependence does not have a mediating effect on social capital shares in operational performance, it moderates the strength of trust actions in relation to cost, delivery, flexibility and innovativeness of the buyer.Practical implicationsAs for the practical implications, in a buyer–supplier relationship, managers may not be fully capable of decreasing dependence and thus increasing the effect of trust actions on operational performance.Originality/valueFor management practices in the textile and clothing industry, social capital actions contribute to strategic objectives, increasing collaboration between supply chain partners, and for operations, offering more options in managing social ties.