The effect of the supply chain social capital

Abstract

PurposeThe aim of this paper is to demonstrate that supply chain social capital has an effect on supply chain integration, which in turn has a significant on firm performance, and then supply chain integration mediates the relationship between supply chain social capital and firm performance.Design/methodology/approachThe authors validated their model and tested the hypotheses using the partial least squares (PLS) structural equation model (SEM).FindingsEmpirical results reveal that the three dimensions of supply chain social capital – structural, relational, and cognitive – had significant effects, directly or indirectly, on supply chain integration and performance, and supply chain integration played a mediating role in the relationships between structural capital and firm performance, between relational capital and firm performance, and between cognitive capital and firm performance.Research limitations/implicationsSince the survey data were collected at various industries in Korea, it is difficult to gain social network benefits for a specific industry through worldwide. Therefore, to obtain more meaningful results, the authors would collect the data for special product family in the special industry. But the study suggests that supply chain integration among supply chain partners can be improved by building up social capital, firm performance can be enhanced by improving supply chain integration, and consequently, supply chain integration should serve to enhance firm's profitability.Originality/valueThe main contribution of this paper investigates whether supply chain integration mediates the relationship between supply chain social capital and firm performance in the supply chain using the PLS and Baron and Kenny's approach.