International Social Capital Research Articles

International friendship cities, spatial spillover effect and urban export growth: Evidence from China

AbstractUsing a spatial econometric model, this study investigates the impact of international friendship cities on urban exports in China at the city level. The results demonstrate a significant spatial spillover effect of international friendship cities on China's urban exports, benefiting not only the local area but also the neighbouring cities. Mechanism tests indicate that international friendship cities foster export growth in both local and adjacent cities by accumulating international social capital. Additionally, we identify a spatial spillover interval (within 700 km) and a siphonic interval (beyond 800 km) in the effect of international friendship cities on the urban exports of surrounding cities. This study sheds light on the role of international friendship cities in driving urban export growth in China.

The role of local colleagues in establishing international scientific collaboration: Social capital in emerging science systems

Abstract International collaborations are important for developing science systems. Using a dataset of South African university scientists, we ask whether social capital relevant to international collaboration held by one scientist spills over to local colleagues. Distinguishing between different ways of acquiring foreign ties, we find that 20% of our cases resemble the most-studied form of international collaborations, via the unique ties of an individual with specific characteristics, e.g., foreign research training. In all other cases, both personal and local peers’ international social capital is relevant for foreign tie formation. Underlining the systemic functioning of science, international social capital is activated through scientific collaboration among local scientists. The mediating effect of local scientific collaboration is present across all scientific fields and holds for scientists trained locally or abroad. Our findings thus imply that local collaboration is a relevant mechanism to strengthen international collaboration and the formation of international social capital.

The role of global dynamic managerial capability in the pursuit of international strategy and superior performance

We develop the construct of global dynamic managerial capability (GDMC) and identify its underlying sources: (1) international human capital, (2) international social capital, and (3) international managerial cognitions. Consistent with dynamic capabilities view and upper echelons theory, we suggest that GDMC leads to global asset orchestration, which in turn, results in superior company performance in a two-stage process. First, GDMC leads companies to adopt global strategies that spread the risk of internationalizations across different entry modes and geographic regions. Second, the (re)configuration of global assets positively influences subsequent firm performance and thus mediates the relationship between GDMC and performance. Recognizing the triad of factors that form global dynamic managerial capability is crucial when selecting future managers of multinational corporations. Hence, firms with increasing international exposure – both domestically via foreign competition and internationally via foreign market presence – may seek to compose their upper echelons with a suitable combination of international human and social capital as well as internationally diverse cognitions in the pursuit of sustained competitive advantage.

International Mobility and Social Capital in the Academic Field

The relationship between the international mobility of academic researchers and social capital is complex. On the one hand, the literature suggests that social capital facilitates the international mobility of academics which, in turn, promotes the accumulation of international social capital, enhances research productivity, and advances careers. On the other hand, international mobility can isolate researchers from the national social capital in their origin countries. In this paper, I present the results of 42 interviews in Canada and Germany to examine how academics in both countries have experienced the connection between international mobility and social capital. In addition to revealing the complexity of this connection, the results show that social capital facilitates international mobility and that mobility sometimes creates social capital. However, mobility can also lead to the loss of national social capital that negatively affects early-career researchers in particular.

Developing international social capital: The role of communities of practice and clustering

One criteria regarding where to invest in foreign markets is linked to the international social capital (ISC) that exists on the place, which enables the access to local knowledge and other location-specific advantages. There are alternative ways to create and make use of that ISC that are still unexplored by International Business literature. In this paper, we study the geographic communities of practice (CoP) that are formed by FDI firms from the same country-of-origin (the so-called country-of-origin clusters). For that purpose, the paper adopts a qualitative methodological approach through an inductive case study of expatriates from 13 Spanish subsidiaries co-located in China. Our findings suggest that there are particular mechanisms based on the informal connections and repeated interactions facilitated by a common language and non-competitive relationships that create an ISC in the CoP. Moreover, our analysis shows there is a heterogeneity in the way these mechanisms are developed and used by the member firms, and this is due to organizational and individual factors, as well as leadership dynamics. Our work contributes to Internationalization and Network theories by identifying unexplored mechanisms through which the ISC is developed at the host country level. Besides, it helps identifying competences (i.e. clustering competences) that help expatriate managers to be successful in their international assignments.

The Belt and Road Initiative in China's Emerging Grand Strategy of Connective Leadership

AbstractAs Chinese leaders endeavor to maintain the international environment aligned with their strategic aim of realizing the “dream of national rejuvenation,” the remarkable increase in China's capabilities, coupled with uncertainty in the global economy and the ambivalent attitude of the USA toward the international order, poses fresh challenges to Beijing's foreign policy. The present paper argues that a lexicographic preference for the mitigation of the risk of pushback against China's core interests underpins the Belt and Road Initiative. Pursuing a strategy of credible reassurance commensurate to the shift in the distribution of power in China's neighborhood and globally, President Xi Jinping's administration has been cultivating a form of connective leadership that commits China to the encapsulation of the Belt and Road Initiative for transregional connectivity into its own national development strategy, generating an octroyé, non‐hegemonic, type of international social capital, and integrating the existing order without corroborating the position of its founder.

International and market-specific social capital effects on international opportunity exploitation in the internationalization process

We develop theory stating that international and market-specific social capital are two distinct forms of social capital which both increase international opportunity exploitation. We also argue that market-specific social capital mediates international social capital. Our theoretical developments are based on internationalization process theory and social network theory. Using data on 239 internationalizing SMEs, our results confirm that the effect of international social capital on opportunity exploitation is only mediated via market-specific social capital. Hence, we identify an internationalization process for social capital development in international business opportunity exploitation. Our contribution adds in several ways to existing international business research.

The impact of international service on the development of volunteers’ intercultural relations

Approximately one million people from the United States perform international volunteer service each year, representing a significant flow of ideas, people, resources, and aid across international borders. This quasi-experimental study assesses the longitudinal impact of international volunteer service on volunteers’ intercultural relations, international social capital, and concern about international affairs. Using linear mixed regression models that control for a counterfactual comparison group of individuals that did not travel abroad, international volunteers are more likely to report significant increases in international social capital and international concern two to three years after returning from service. Results indicate that intercultural relations may also continue to increase years after returning from service. International service may be a useful approach to helping people gain skills and networks that are needed in an increasingly global society.

Building International Social Capital at the Startup Chile Accelerator

Startup Chile (SUP), a business accelerator launched with much international fanfare by the Chilean government in 2010, is seen as a key reason that Santiago is now ranked among the world’s top startup cities. One of SUP’s primary goals is to link Chile’s innovation ecosystem to the world and to influence the culture of local business through contact with world-class international entrepreneurs. In this paper, we use one lens to examine its success at achieving these aims. For this preliminary work, we conducted field interviews with SUP entrepreneurs and staff. Specifically we conducted one or more interviews with thirteen SUP firms from across the 2010-2013 generations. We introduce our framework for analysis, which we label “the Cherimoya graph.” Our focus in data collection is on three link categories: 1) connections between foreign and Chilean entrepreneurs (where both were accepted to SUP); 2) connections between SUP entrepreneurs and the broader Chilean ecosystem (and by implication the transfer of social ties to the larger Chilean business community); and 3) connections between Chilean entrepreneurs within SUP and foreigners outside of SUP. We found that SUP has created numerous structures to foster networks and that some are succeeding. However, network creation was uneven and most noticeably, the Chilean and foreign SUP entrepreneurs did not forge as many links as expected. Additional research with additional interviews and social network analysis methods will follow shortly.

International Service and the Perceived Impacts on Volunteers

Although international volunteer service is growing in prevalence worldwide, there is little rigorous research about its impacts. This quasi-experimental study assesses the perceived impacts of international service on international volunteers. We focus on four internationally oriented outcome categories: international awareness, intercultural relations, international social capital, and international career intentions. International service provides exposure and immersion to develop these perspectives, relationships, and intentions. Using generalized linear mixed regression modeling, international volunteers ( n = 145) are statistically more likely to report increases between the baseline (1 month before service) and postservice time periods (1 week to 1 month after service) in all outcomes except intercultural relations, as compared to a matched comparison group ( n = 145). Age, race, occupational experience, and previous international experience are also associated with various outcomes. Implications include continued cultural growth, potential mutual impacts of international social capital, and future research on the volunteers and host communities.

Attracting cross-border venture capital: the role of a local investor

Examining an increasingly prevalent but under-researched phenomenon, cross-border venture capital investments, it is observed that local venture capitalists typically invest first, followed by foreign venture capitalists in later rounds. A model is developed that explains the role of a domestic venture capital investor in attracting foreign investors and which also accounts for the impact of various circumstances on the importance of this role. In our model based on analysis of nine cross-border venture capital-backed companies, local venture capitalists have several important roles in increasing the venture's cross-border investment readiness including advice to operational management and contributing contacts and local market knowledge. The importance of these roles is mitigated if the entrepreneurial team is highly experienced or if the home market is not important for the venture. The prominence of the local investor has signalling value. Finally, the local investor's international social capital facilitates the formation of cross-border syndicates. Overall, the model developed in the paper contributes to a better understanding of cross-border venture capital and in particular to the division of labour between domestic and foreign venture capitalists in international venture capital syndicates. The paper also contributes to the emerging literature on international social capital.

Managing Australia’s aid‐ and self‐funded international students

In Australia, market‐oriented studies involving overseas students have not kept pace with the regional economic development that has freed prospective students from relying on aid money and contributed towards the commercialisation of international education. A sample of 336 Asian and Pacific Island students from a range of faculties at the University of Wollongong reported their perceptions of prejudice in the local and university communities, their attitudes towards the quality of service provided by the university, and their intentions to recommend Australia on returning home. Compared to aid‐funded students (N = 57), the self‐financing majority were more likely to discern prejudice and inferior service, but ratings on these two factors, for both groups, sharply differentiated those who later intended to recommend Australia from those who did not. Today’s business ethos suggests that techniques from managerial psychology could be applied to improve the quality of delivery of our higher educational services, thereby preventing further erosion of international social capital.