Capital Matter Research Articles

The performance of researchers in multidisciplinary research groups: does social capital matter?

The aim of this article is to discuss the relationship between disciplinary diversity (multidisciplinarity) and the performance of researchers, exploring the moderating role of social capital. The article contributes to the literature explaining the internal processes of multidisciplinary research units and how they affect the scientific performance of researchers. Furthermore, the article explores the potential moderating role of social capital and how relational dynamics can mitigate the potential problems associated with multidisciplinarity. To test the hypotheses proposed, we performed a quantitative study based on a sample of 155 researchers in the field of academic management. Multiple regression analysis was used in the empirical analysis. The findings suggest that a positive relationship between researchers’ performance and multidisciplinarity exists (an inverted U-shaped relationship). Estimations also show that internal social capital moderates this curvilinear relationship, making it possible to achieve higher research performance at higher levels of multidisciplinarity.

Financial globalisation and the labour share in developing countries: The type of capital matters

AbstractIn this paper, we investigate how de facto financial globalisation has influenced the labour share in developing countries. Our main argument is the need to distinguish between different types of capital in this context as they differ in their effect on the host countries' production process and vary concerning their bargaining power vis‐à‐vis labour. Our econometric analysis of the impact of foreign direct versus portfolio investment in a sample of about 40 developing and transition countries after 1992 supports this claim. Using different panel data techniques to address potential endogeneity problems, we find that foreign direct investment has a positive effect on the labour share in developing countries, while the impact of portfolio investment is significantly smaller and potentially negative. Our results also highlight that de facto foreign investment cannot explain the decline of the labour share in developing countries over the investigated period.

Social Capital’s Role in Humanitarian Crises

AbstractThe growing scale and persistence of humanitarian crises constitute a critical problem for nation-states, aid organizations and crisis-affected people. Many humanitarian responders continue to focus on material aid, providing essential supplies and services during these crises, while other actors restore physical infrastructures. We believe aid efforts are overlooking the pivotal nature of horizontal and vertical ties within and between communities. Using qualitative and quantitative data from Uganda and Nigeria, we show how social capital matters even during the most severe crises. Our interviews and regression analyses of survey data show that deeper reservoirs of bridging social capital associate significantly with the preparedness of individuals displaced by violence in Nigeria, and that bonding and linking social capital correlates with greater resilience for people stressed by food insecurity in Uganda’s Karamoja region. Some concrete policy recommendations emerge for aid agencies and decision-makers that can invest in rebuilding social infrastructure in affected populations.

External and internal capabilities and organizational performance: Does intellectual capital matter?

While prior research examines how firms’ specific capabilities achieve organizational performance, few studies take a holistic perspective. In this study, we adopt a holistic model to examine how different capabilities actually account for organizational performance. We also consider how intellectual capital mediates the relationships between organizational capabilities and performance. We conducted a questionnaire survey involving 167 managers in the Taiwan Transportation Vehicle.Manufacturers Association (TVMA). Using the structural equation modelling (SEM) based on partial least squares (PLS), we find that market knowledge, relationship and innovative capabilities, have positive effects on intellectual capital, while customer knowledge capabilities have no significant effects. Intellectual capital partially mediates the relationships between organizational capabilities and organizational performance. We contribute to the literature on organizational capabilities, by demonstrating the mediating effects of intellectual capital on the relationships between organizational capability, both in its external and internal dimensions, and organizational performance, as well as suggest to firms aiming to enhance organizational performance, particularly those in the transportation industry.

Reputation Capital of Directorships and Demand for Audit Quality

This study examines whether boards of directors use external auditing to protect their reputation capital. We hypothesize and find that audit quality increases with the level of directors’ reputation capital. More specifically, using ten-year panel data on Finnish listed companies, we find that our measures of reputation capital based on the number of directorships that directors possess and their compensation are positively associated with various proxies for audit quality. We also find that the observed reputation effect on audit fees is stronger in companies with an audit committee, and that reputation capital matters in auditor choice in those companies in particular. In combination, our results add to the literature on the reputation capital of those in charge of corporate governance.

Reputation Capital of Directorships and Audit Quality

This study examines whether boards of directors use external auditing to protect their reputation capital. We hypothesize and find that audit quality increases with the level of directors’ reputation capital. More specifically, using ten-year panel data on Finnish listed companies, we find that our measures of reputation capital based on the number of directorships that directors possess and their compensation are positively associated with various proxies for audit quality. We also find that the observed reputation effect on audit fees is stronger in companies with an audit committee, and that reputation capital matters in auditor choice in those companies in particular. In combination, our results add to the literature on the reputation capital of those in charge of corporate governance.

Does social capital matter more when health status is poor? Labour market attachment among long-term recipients of social assistance in Norway

ABSTRACT Long-term social assistance recipients are a disadvantaged group with loose labour market attachment, and they are therefore in dire need of an ‘alternative route’ into employment. Differing types of social capital (bonding, bridging, and trust) could improve job opportunities, and perhaps especially so for social assistance recipients with poor health. The current paper uses a linked survey-register data material on a cohort of Norwegian long-term social assistance recipients, which holds rich information on both health status and social capital at baseline (2005). Linear probability models are estimated, with differing operationalisations of wage income (2005–2013) as the outcome. Three main empirical findings appear. First, both mental and somatic health status is highly consequential for labour market attachment among social assistance recipients in Norway. Second, rather few social capital indicators are associated with employment probability, with three noticeable exceptions: loneliness, active organisational membership, and social trust all show a statistical relationship with employment. Third, there is some indication that people with ill health profit less from both bridging social capital and social trust, compared to people with good health status. In conclusion, health status matters a lot and social capital matters a little for labour market attachment among long-term social assistance recipients.

“It’s the Person, but Then the Environment, Too”: Black and Latino Males’ Narratives about Their College Successes

This study relies on in-depth interviews with 30 Black and Latino males to explore how they narrate and make meaning from their college experiences at a Hispanic Serving Institution. A good deal of public and educational discourse often supposes these students’ lack of care and concern about their educational outcomes without understanding a larger context for their experiences. In this study, I explore these Black and Latino male students’ transitions to college and their success narratives. First, investigating their transition experiences allows for an opportunity to understand the strategies they deployed upon entering college and how these early experiences matter in their aspirations and sense of self. In their transitions, I find that students primarily relied on strategies and behaviors that are focused almost solely on academic effort while also isolating themselves from the college community and precluding themselves from developing social and cultural capital on campus. Second, analyzing their narratives of success allows for understanding the various networks and resources that students call upon in their college career. My findings show that students rely on a family–community nexus, including their on-campus involvement to support their college efforts. In addition to showing how social and cultural capital matter in Black and Latino males’ college experiences, this study extends our understanding of how students strive for and achieve success in college.

Beyond the local – Exploring the socio-spatial patterns of translocal network capital and its role in household resilience in Northeast Thailand

Livelihood studies have highlighted social support networks as critical sources of social capital and as an important feature of rural households' resilience, however so far, have contributed little the understanding of network capital's socio-spatial patterns. Accordingly, livelihood studies have tended to omit relevant determinants of rural households' resilience, especially in emerging and developing countries, such as Thailand, where rapid agrarian change and migration have resulted in increasing translocal connectedness between rural and urban areas and unevenly distributed livelihood outcomes. This paper aims at closing this gap, by systematically assessing the socio-spatial patterns of rural households' translocal networks in Northeast Thailand. Applying a translocal network approach combining methods of formal social network analysis (SNA) and qualitative network research, we find that translocal network capital matters more for accessing advice than for labor, but particularly for accessing financial support. Although poor households have less translocal network capital at their disposal, they depend more critically on translocal networks than rich households. While poor households rely particularly on migration-related bonding ties to provide financial means for coping with precarious livelihood conditions, rich households can leverage institutional translocal bridging ties to access advice and finance for the transformation towards market-oriented agriculture. These findings suggest that, in Northeast Thailand, translocal network capital contributes less to the poors' than to the richs' resilience. We conclude by calling for a more nuanced consideration of the socio-spatial patterns of network capital and propose applying a translocal network perspective as a fruitful means to this end.

Does social capital matter in climate change adaptation? A lesson from agricultural sector in Yogyakarta, Indonesia

Climate change increases the vulnerability of agricultural sector due to the increasing threat from pest attacks. Mitigation of a threat that results from climate change requires adaptation strategies. This study investigates farmers’ willingness to participate in the process of climate change adaptation in Yogyakarta, Indonesia; particularly in facing the increasing risk of pest attacks. Using a logistic regression model, we tested the impacts of social capital on farmers’ willingness to participate. The results showed that 70% of farmers were willing to contribute financially to the adaptation process. This participation was positively correlated with high social capital, which consists of high level of trust, community engagement, and personal relations with people in other villages. This study contributes to the literature by highlighting the potential roles of social capital in the process of climate change adaptation in agricultural sector.

Social Capital and Residential Decision Making Among Rural and Nonrural College Graduates

Due to the low demand for highly educated workers in rural areas, high‐achieving rural students have been portrayed as having to pick between staying close to home and facing limited economic opportunities or leaving to pursue higher education and socioeconomic advancement. But what of those who want both—college degree and return to rural living? Comparing the experiences of rural graduates who returned to rural locales with those who out‐migrated and nonrural graduates across one predominantly rural state, this study explores how social capital matters in the residential decision‐making process. Proximity to work and family were the primary factors determining adult residence. Sense of place—but not attachment to a specific community—also mattered, especially for rural graduates. Family, school, and community social capital were more likely to play a role in career development for rural students, as career aspirations during adolescence followed by career‐driven college choices created pathways for rural return. Findings underscore the importance of analyzing rural return from a regional lens, as respondents reframed lifestyle elements researchers tend to portray as mutually exclusive—rural lifestyle, proximity to family, and professional career—as compatible by employing broad and flexible definitions of proximity and place.

Does intellectual capital matter in performance management system-organizational performance relationship? Experience of higher education institutions in Indonesia

PurposeThe purpose of this paper is to investigate whether performance management system (PMS) has a positive effect on organizational performance. Furthermore, it also investigates whether intellectual capital (IC) mediates PMS-organizational performance relationship.Design/methodology/approachThis study is designed as a quantitative research employing a partial least squares structural equation modeling (PLS-SEM). Using an online survey, data are collected from the HEIs managers under the Ministry of Research, Technology and Higher Education, the Government of Indonesia (MRTH-GOI). This research uses a mediation model approach to test the indirect effect of IC.FindingsThe results reveal that PMS has a positive direct effect on organizational performance of the HEIs in Indonesia. Further analysis proves that IC partially mediates PMS-organizational relationship.Research limitations/implicationsThis research is context-specific for Indonesia and caution should be used when generalizing it to other countries. It implies that the better the organizational performance of the HEIs, the better the quality of life in the society. PMS and IC play a crucial role in the era of knowledge economy.Practical implicationsThe HEIs managers should design and implement a reliable PMS. They also should properly manage the IC (human capital, structural capital, relational capital) so that they can enhance organizational performance in areas of teaching, research and community service as the core business of the HEIs.Social implicationsAs the global education competition has become a serious issue in each HEI in Indonesia, the results of this study contribute to providing an approach on how to achieve a better organizational performance which brings more benefits to the society. The HEIs display a strategic role in improving the quality of life of society. The knowledge economy requires society to enhance the quality of education at all levels. This research model and results provide empirical evidence of the importance of IC which mediates the relationship between PMS and organizational performance. When the HEIs in Indonesia implement this model of managing IC, the society will get more benefits in terms of the improvements in the quality of education, teaching, research and community service from the HEIs. The better the HEIs performance, the better the quality of life of the society in the era of knowledge economy.Originality/valueThis research brings together issues that are usually examined separately in previous studies. It employs a mediation research model to explore the central role of IC in PMS- organizational performance relationship which is rarely researched. This is also the first study exploring the three constructs of PMS, IC and organizational performance in the Indonesian HEIs research setting.

Accounting for strategic management, strategising and power structures in the Jordanian higher education sector

Purpose The purpose of this paper is to present the findings of a field study, investigating accounting, strategising and accounting for strategic management and power structures in the Jordanian higher education (HE) sector on the basis of Bourdieu’s theory of practice. Design/methodology/approach This paper adopts an interpretive stance, seeking to investigate the perceptions of actors in the field, with regard to accounting, strategising and accounting for strategic management in HE. The adopted methodology is adapted grounded theory, as this study assumes a prior theoretical stance of Bourdieu’s theoretical concepts. Data were collected through participant observation in meetings, at the workplace, interviews and documentation. Findings The main findings of this paper reflect how strategising and accounting in practice manifest themselves in the Jordanian HE sector. Bourdieu’s theory of practice sets the meta-theoretical context of the current study, with field setting the scene, and habitus being represented in the strategising mind-set participants adopt. The mind-set determines how strategic management accounting is perceived and dealt with. Strategic management accounting takes place at varying degrees. The power structures that influence and determine strategising and accounting in support thereof are researched on the basis of Bourdieu’s forms of capital. Different forms of capital matter in the HE sector determined by fields’ doxa. Research limitations/implications The researcher is a part of the field, the Jordanian HE sector; thus, their habitus has been exposed to its characteristics and features. Thus, certain internalised structures and experiences needed to be challenged for this analysis, which was not an easy task. Originality/value This study investigates accounting, strategic management and power structures in HE, and it highlights the different power structures, using Bourdieu’s forms of capital, which offers a great insight into how different cultures approach similar issues.

At a Crossroads: Economic Hierarchy and Hardship at the Intersection of Race, Sex, and Nativity

Immigration has been the focus of much contention in the United States in recent years. Indeed, concerns persist with regard to how the foreign-born will adapt and integrate into U.S. society and core institutions, including the economy and labor market. Despite the considerable insights of prior research, however, our understanding of contemporary racial/ethnic stratification remains limited, especially in terms of how race/ethnicity and sex intersect with immigrant status. Using pooled 2012–2016 American Community Survey data, we investigate wage differences and near-poverty status by race/ethnicity, sex, and nativity (among full-time, full-year workers) in five dynamic majority-minority U.S. labor markets and high-volume immigrant destinations (Atlanta, Chicago, Houston, Los Angeles, and New York City). Findings demonstrate that assimilative and human capital attributes matter. Yet our analyses reveal discernible group-level inequalities suggestive of depressed mobility, blocked opportunity, and race/ethnic- and sex-based hierarchy—patterns that highlight the embedded character of assimilation and economic outcomes within contexts of constraint. We find significant inter- and intragroup variation in these regards—particularly for near-poverty. We discuss our findings in light of their empirical and theoretical implications toward understanding minority group incorporation and economic inequality.

Does the ‘Process’ of Process Capital Matter to Performance? Evidence from Kenyan Commercial Banks

Globalization, changing customer expectation and shrinking product life-cycle depict process capital as a source of competitive advantage in modern economies. Consequently, organizations are gradually becoming more process oriented to cope with a dynamic environment. However, the process capital and performance causality is scanty in extant literature. Besides, previous studies overlooked the process aspect of process capital. Thus, the objective of this study was to determine whether the “process” of process capital matters to firm performance. The hypothesis was tested using panel data for the years 2008-2017 extracted from 31 commercial banks in Kenya. The findings showed that process capital had a positive and significant effect on performance (β = 0.275, ρ-value 0.000<0.05). Consistent with the resource based view theory; the study concluded that the process of process capital influences firm performance.

Does Capital Account Liberalization Affect Income Inequality?

By adopting an identification strategy of difference-in-difference estimation combined with propensity score matching between liberalized and closed countries, this paper provides robust evidence that opening the capital account is associated with an increase in income inequality in developing countries. Specifically, capital account liberalization, in the long run, is associated with a reduction in the income share of the poorest half by 2.66-3.79 percentage points and an increase in that of the richest 10% by 5.19-8.76 percentage points. Moreover, directions and categories of capital account liberalization matter. The relationship is more pronounced when liberalizing inward and equity capital flows.

Mechanisms of Social Capital in Organizations: How Team Cognition Influences Employee Commitment and Engagement

While previous research has shown that organizational social capital benefits organizations and creates performance gains, most of this work examined this relationship at the macro level based on organizational aggregates. In this article, we study organizational social capital effects at the micro level, that is, its impact on important work-related attitudes of employees within organizations. We argue that individual perceptions of organization-wide social capital matter in determining employee attitudes such as engagement and commitment. We also point to the critical role of team cognition in shaping individual perceptions of social capital in organizations. Using an organizationally representative sample of nearly 1,200 individuals from two local government organizations in North Carolina, we find support for the indirect effect of team cognition on employee work attitudes. The findings suggest that a promising way to increase the social capital of organizations is through interventions at the team level.

Does human capital matter for reduction in energy consumption in India?

Purpose This paper aims to investigate whether improvement in human capital can foster energy conservation by reducing the energy consumption in India using annual data from 1980 to 2014. Further, this study examines the relationship between human capital and various forms of energy consumption such as electricity, coal, natural gas, hydrocarbon gas and petroleum consumption. Design/methodology/approach To attain the objective, the study investigates this relation through the auto-regressive distributed lag model (ARDL) technique to find a long-run and short-run relationship. Second, to check the robustness of the results, the authors use alternative econometric methods such as dynamic ordinary least squares and fully modified dynamic ordinary least squares. Findings The results reveal a negative relationship between human capital and energy consumption, which implies that improvement in human capital lowers the energy consumption and various forms energy consumption, except for petroleum consumption. The results derived from ARDL show that there exists a long-run and short-run association between human capital and energy consumption. The results are consistent across the econometric techniques. Practical implications Because G20 countries including India aim at reducing carbon emission to a certain level, this study provides an insight that by emphasizing on human capital, India can reduce energy consumption, which would foster energy conservation. Originality/value To the best of the authors’ knowledge, this the first study in India which attempts to examine the effect of human capital on energy consumption and its various forms.

Access to Medical Technologies: Do Gender and Social Capital matter?

We explore the relationship between the characteristics of social capital, the speed of access to medical technologies and the role of gender in a private practice context. Our findings from a sample of 98 German private practitioners show that: (a) being a woman has an overall negative impact on the speed of access to medical technologies; (b) private practitioners with strong social network ties obtain quicker access to medical technologies than do those with weak ties; (c) men relying on their weak ties perform better than women who do so. In contrast, we observe that women relying on strong ties outperform their male counterparts in terms of speed of access to medical technologies.

Does social capital matter for supply chain resilience? The role of absorptive capacity and marketing-supply chain management alignment

Marketing in an increasingly tumultuous marketplace requires resilience -the ability to withstand, adapt, and flourish despite turmoil and adverse change- that extends beyond firm boundaries. Although external resources are arguably essential to achieve resilience, little is known how and when firms' social capital derived from interorganizational relationships can lead to supply chain resilience. Therefore, we investigate the role of absorptive capacity and marketing-supply chain management alignment in realizing the potential impact of social capital on supply chain resilience. Using data obtained from dual respondents from 265 Turkish firms, we test the mediating role of absorptive capacity and the moderating role of marketing-supply chain management alignment. Our findings indicate absorptive capacity mediates the relationship between social capital and supply chain resilience, and the links between social capital and absorptive capacity and social capital and supply chain resilience are stronger when marketing-supply chain management alignment is high. We also find that supply chain resilience is positively associated with organizational performance, empirically supporting the proposed value of supply chain resilience for firm strategy. Accordingly, our paper highlights that both absorptive capacity and marketing-supply chain management alignment are necessary to realize the actual value of social capital for supply chain resilience and ensuing performance.