Exploring the impact of social capital on business performance: The role of dynamic capabilities, open innovation and government support

Abstract

This study examines the relationships between social capital (encompassing structural, cognitive, and relational dimensions), dynamic capabilities, open innovation (both inbound and outbound), government support, and business performance in Vietnam. Using a quantitative approach, data were collected from 289 respondents and analyzed using Partial Least Squares Structural Equation Modeling . The findings show that social capital positively influences both dynamic capabilities and open innovation. While dynamic capabilities have a significant impact on business performance, open innovation enhances government support but does not directly affect business performance. Additionally, dynamic capabilities mediate the relationship between social capital and business performance, and government support partially mediates the relationship between open innovation and business performance. These results underscore the importance of government support and dynamic capabilities in leveraging social capital for enhanced business performance, while also highlighting the need for further investigation into the direct impacts of open innovation on performance.

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