From because high-performing entrepreneurs are members of

From a five-year research programme based on
a questionnaire survey targeted a total about 600 entrepreneurs from different
ethnic groups established in metropolitan; Montreal, Toronto, and Vancouver in
Canada. Perreault, Brenner, Menzies, Filion, & Ramangalahy (2007) have
discovered a significant relationship between the social capital and business
performance of the people lived in these areas. Social capital was measured
using social, commercial or professional membership in co-ethnic groups that
the measurements refer to percentages supposing the respondents in illegal or
secret associations are working in good faith. For business performance,
organizational data was considered, mainly the size of the business reflected
through a number of employees working in the organization, The number of years
in the business and the business turnover of the financial qualification of
firms. The main purpose of this research was to identify the relationship
between business performance and social capital for ethnic entrepreneurs, in
their various forms. They tested the concept and the hypothesis using four ethnicities
Group, Chinese, Italian, Sikh, and Jewish, lived in Montreal, Toronto,
Vancouver cities in Canada. Business performance negatively associated with
employee’s percentage which states that though there’s a higher reliance on
co-ethnic organizations lower performance was reflected. On the other hand,
membership of organizations has a positive effect on the performance of ethnic
businesses, because high-performing entrepreneurs are members of co-ethnicity,
which proves that membership in co-ethnic organizations is more networking on
their part reflecting as a more consistent proxy for networking. However, they
were able to estimate the membership of high and low performing businesses from
the selected social capital variables, saying that social capital positively
contributes to institutional performance. Even though it is difficult to decide
empirically whether the use of social capital hinders performance, or whether
poor performance central to the use of social capital their empirical results
are able to validate commonly held views about social capital and business

In examining the relation among social
capital of entrepreneurs participating in horizontal networks and their company
performance, Oliveira (2013) has been conducted a survey using 218 business people from 34 horizontal business networks in
Brazil. To achieve the proposed objectives, a quantitative study specifically
at first a key information survey was conducted on eight selected horizontal
network experts through an online and printed questionnaire. Variable ‘social capital’ was instigated in
three dimensions. In the form of structural, relational and cognitive.The structural dimension was measured by asking
the entrepreneurs how they interacted within a horizontal network, they were
asked about the diversity of those contacts, which were asked about knowledge
and information.Under
the questions about the relational and cognitive dimensions of social capital,
entrepreneurs were asked to talk specifically about those contacts listed in
the structural dimension questions, which were basically on their integrity,
ability, reciprocity, the proximity of social relations and how similar their
objectives and vision were. In this study, according to the finance, customers,
education and innovation and internal processes, performance has been analyzed.
Study underlying three major hypotheses on entrepreneur’s structural, relational
and cognitive capital accordance with their business performance, where under
structural dimension both quality and the diversity of the contacts been analyzing
with the performance. All the suggested
hypotheses to test between the dimensions of social capital with the companies’ performances were accepted. The
positive influence of an entrepreneur’s number of contacts on the business
performance confirm results from other studies
held in different contexts, the results confirm a stronger impact of the structural
dimension, relational dimension, and cognitive
capital on corporate performance. Empirical research showed positive
relationships between entrepreneurs’ social capital and their levels of access
to information. Data analysis confirmed the connection between the company’s
performance and the number of contacts of an entrepreneur in the network, the range
of relationships, the quality of relations, and the connection between
cognitive equality among the contacts. It was also verified that entrepreneurs
participating in horizontal networks could reach higher levels of relevant
information for their businesses due to the social capital developed within the

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On analyzing the impact of social capital networks within immigrant family business owners to the improvement of their businesses Tata & Prasad (2015) has been successful in doing a study investigating 170 immigrant family business owners in Midwest USA. They have pointed out social capital is a multidimensional concept contain both structural and relational embeddedness, which help in finding their independent variables to represent social capital on the study. On the other hand, they identified the influence of network benefits as a mediating factor in social capital that influences the business performance. As mentions previously they analyze two main attributes under social capital, structural and relational capital, first on network benefits then on performance with the network influence, so they considered mainly immigrant communities and their network benefits under independent variable. The dependent variable which is business performance mainly reflected operationalize measures. The study employ family businesses literary as an influential control variable recognizing many important features connected with respondent’s business. According to their results relational social capital showed a higher impact on business performance by influencing network benefits as well with higher access to resources and information, structural capital also results a considerable impact on network benefits and access to information but not to access information. However, the relationship between both was positive and significant asserting the substantial effect of social capital on business performance while gaining higher level of net profits. The results also show that the network profit had mediated effects on the relationship between social capital and trade performance.

Bouzdine & Lorgnier (2004) have published
an article arguing on many researches views the influence of social capital on business
networks while proposing the importance of knowledge sharing as a factor of
social capital largely effect on achieving higher performances in business as
well in organizations. The
effectiveness of business is examined as a result of sharing knowledge through
the social capital model in a network. In relation to closing and structural holes’
approaches, social capital been analyzed, which are not much the opposite, but
are related to the network’s two levels; the entire network and the sub-network.
This study suggests this theory is one of the the most acceptable theoretical model to interpret implicit phenomenon of
business achievement. According to Bouzdine & Lorgnier (2004), when social relations are strong and innumerable,
more faith, reciprocity, information flow, collective action, happiness and, by
the way, more money will generate in businesses. In this study they guarantee
the importance of effective knowledge sharing, and its effective network by
itself and also they
suggest the impact of knowledge sharing as a component of social capital in different
viewpoints. That it has an attractive, retaining talent suggesting that
talented people will find out the meaning of their work and jobs, develop community
and identify with the company, also people with rich social capital will be
paid more, with better rewards. Other than that they reflect because they are
rich with information they cannot be cheated, while focusing on information
sharing as the major element of knowledge sharing which directly leads
businesses for its success.


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