Human Capital and Social Capital as Determining Factors of The Msmes Surviving Ability

Authors

  • Abdul Azis Safii Sekolah Tinggi Ilmu Ekonomi Cendekia Bojonegoro
  • Susilowati Rahayu Sekolah Tinggi Ilmu Ekonomi Cendekia Bojonegoro

Abstract

This study aims to analyze human capital and social capital factors that can help Batik Bojonegoro MSME to survive. Data were collected from 247 MSMEs of Bojonegoro Typical Batik producers. 105 MSMEs are still operating, while the remaining 142 MSMEs are no longer producing Jonegoroan Batik. The data were obtained through a survey on 2020. With the probit model estimation, the analysis shows that the level of education, business experience, family, number of colleagues, and family business networks has a positive influence on the ability to survive the Bojonegoro batik MSMEs. The research also found that the level of education strengthens the influence of the number of colleagues, and family business networks on the survival of MSMEs.

Downloads

Download data is not yet available.

References

Batjargal, B. (2007). Internet Entrepreneurship: Social Capital, Human Capital, and Performance of Internet Ventures in China. Research Policy, 36(5), 605–618.

Batjargal, B. (2003). Social capital and entrepreneurial performance in Russia: A longitudinal study. Organization Studies, 24(4), 535–556. https://doi.org/10.1177/0170840603024004002

Becker, G. S. (1993). Human Capital. Chicago Press.

Coleman, J. (1988). Social Capital in The Creation of Human Capital. American Journal of Sociology, 95(1), 95–120.

Davidsson, P., & Honig, B. (2003). The Role of Social and Human Capital Among Nascent Entrepreneurs. Journal of Business Venturing, 18(3), 301–331.

Dewi, A., & Nasution, S. H. (2013). Peranan Kredit Usaha Rakyat (KUR) bagi Pengembangan UMKM di Kota Medan. Jurnal Ekonomi Dan Keuangan, 3(1), 105–116.

Dimov, D. (2017). Towards a Qualitative Understanding of Human Capital in Entrepreneurship Research. International Journal of Entrepreneurial Behaviour and Research, 23(2), 210–227. https://doi.org/10.1108/IJEBR-01-2016-0016

Dyer, J., & Singh, H. (1998). The Relational View: Cooperative Strategies and Sources of Interorganizational Competitive Advantage. Academy of Management Review, 23(4), 660–679.

Ferdinand, A. (2005). Keunggulan, Modal Sosial Dan Pemasaran, Bersaing: Wajah Sosial Strategi. Badan Penerbit Universitas Diponegoro.

Frese, M., & Gielnik, M. M. (2014). The Psychology of Entrepreneurship. Annual Review of Organizational Psychology and Organizational Behavior, 1, 413–438.

Fukuyama, F. (2001). Social Capital, Civil Society, and Development. Third Wolrd Quarterly, 22(1), 7–20.

Jin, C. H. (2015). The Moderating Effect of Social Capital and Cosmopolitanism on Marketing Capabilities: A Comparison of Chinese and Korean Companies. Chinese Management Studies, 9(3), 441–466.

Liu, G., Pang, L., & Kong, D. (2017). Effects of Human Capital on The Relationship Between Export and Firm Innovation. Chinese Management Studies, 11(2), 322–345.

Ma, Z., Zhu, J., Meng, Y., & Teng, Y. (2019). The impact of overseas human capital and social ties on Chinese returnee entrepreneurs’ venture performance. International Journal of Entrepreneurial Behaviour and Research, 25(1), 67–83. https://doi.org/10.1108/IJEBR-07-2017-0246

Mubarik, S., Devadason, E. S., & Chandran, V. (2016). Theoretical framework to analyze human capital – Performance relationship. International Journal of Economic Perspectives, 10(4), 157–165.

Nafziger, E. W., & Terrell, D. (1996). Entrepreneurial Human Capital and the Long-Run Survival of Firms in India. World Development, 24(4), 689–696. https://doi.org/10.1016/0305-750X(95)00161-5

Obeng, B. A. (2019). Strategic Networking and Small Firm Growth in An Emerging Economy. Journal of Small Business and Enterprise Development, 26(1), 43–66. https://doi.org/10.1108/JSBED-01-2018-0035

Safii, A. A., & Rahayu, S. (2020). The Role Of Social Capital And Owner Cosmopolitanism On Marketing Performance of Jonegoroan Batik MSMEs. Proceeding 1st International Conference on Business & Social Sciences (ICOBUSS), 1–10.

Sana Ullah, S. U., Wasim Arif, B., & Tariq Majeed, M. (2019). The Determinants of Firm Survival among Small Cluster Firms. The Lahore Journal of Economics, 24(1), 131–145. https://doi.org/10.35536/lje.2019.v24.i1.a6

Santarelli, E., & Tran, H. T. (2013). The interplay of human and social capital in shaping entrepreneurial performance: The case of Vietnam. Small Business Economics, 40(2), 435–458. https://doi.org/10.1007/s11187-012-9427-y

Schmitz, H., & Nadvi, K. (1999). Clustering and Industrialization: Introductio. World Development, 27(9), 1503–1514.

Shah, Z. A., & Ahmad, M. (2019). Entrepreneurial Orientation and Performance of Small and Medium-Sized Enterprises. Competitiveness Review: An International Business Journal.

Shane, Scott, & Venkataraman. (2000). The Promise of Entrepreneurship as a Field of Research. Academy of Management Review, 25(1), 217–226.

Simpson, M., Padmore, J., & Newman, N. (2012). Towards a New Model of Success and Performance in SMEs. International Journal of Entrepreneurial Behavior and Research, 20(6), 1373–1392.

Ucbasaran, D., Westhead, P., Wright, M., & Flores, M. (2010). The Nature of Entrepreneurial Experience, Business Failure and Comparative Optimism. Journal of Business Venturing, 25(6), 541–555. https://doi.org/10.1016/j.jbusvent.2009.04.001

Unger, J. M., Rauch, A., Frese, M., & Rosenbuch, N. (2011). Human Capital and Entrepreneurial Success: a Meta-Analytical Review. Journal of Business Venturing, 26(3), 341–358.

Valencia, V. S. (2016). Small Firm Survival: An Australian Perspective. Advances in Management & Applied Economics, 6(5), 1792–7552.

Wang, R., Rafiq, M., Li, X., & Zheng, X. (2014). Entrepreneurial Preparedness: An Exploratory Case Study of Chinese Private Enterprises. International Journal of Entrepreneurial Behavior & Research, 20(4), 351–274.

Yulistiyono, H. (2015). Implementasi Program Gerdu Taskin Terhadap Pemberdayaan Lembaga Keuangan Mikrodi Jawa Timur ( Studi Kasus Kabupaten Bojonegoro dan Tuban ). Media Trend, 10(2), 196–216.

Zainol, N. R., Mamun, A. Al, Ahmad, G., & Simpong, D. B. (2018). Human capital and entrepreneurial competencies towards performance of informal microenterprises in Kelantan, Malaysia. Economics and Sociology, 11(4), 31–50. https://doi.org/10.14254/2071-789X.2018/11-4/2

Zainol, Noor Raihani, Al Mamun, A., Ahmad, G. Bin, & Simpong, D. B. (2018). Human Capital and Entrepreneurial Competencies Towards Performance of Informal Microenterprises in Kelantan, Malaysia. Economics and Sociology, 11(4), 31–50. https://doi.org/10.14254/2071-789X.2018/11-4/2

Downloads

Published

2021-06-30

How to Cite

Safii, A. A., & Rahayu, S. (2021). Human Capital and Social Capital as Determining Factors of The Msmes Surviving Ability. Jurnal Ilmu Manajemen Advantage, 5(1), 1–19. Retrieved from http://ejournal.itbwigalumajang.ac.id/index.php/adv/article/view/659

Issue

Section

Articles