Abstract
At the background of China's traditional culture and economic transformation, the effect of entrepreneurial social capital(ESC)on corporate performance has been an important topic attracting attention from both academic and practical fields. This paper examines the relationship between ESC and corporate performance, considering the function of absorptive capacity (AC) in the process. We decompose ESC into external and internal dimensions, empirically test the reconstructed model using structural equation modeling analysis. Results indicate that: there is a significantly positive impact of external ESC on AC and corporate performance with AC as the intermediary variable; there is no significantly positive impact of internal ESC on corporate performance and AC. Thus, In order to improve corporate performance, external ESC should be increased with the objective of acquiring and exploiting knowledge.
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