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Advisor(s)
Abstract(s)
Purpose – The aim of this paper is to evaluate the human capital and social capital of managers and
the influence of these attributes on the performance of small and medium-sized Portuguese companies.
Design/methodology/approach – The structural modeling approach was applied to a sample of
199 small and medium-sized companies aged between 3 and 15 years, from five different sectors of
activity.
Findings – It was found that human capital affects social capital, and that experience and cognitive
ability influence personal relations and complicity. Organizational performance is strongly influenced
by human capital through the cognitive ability of the manager.
Practical implications – Based on these findings managers can gain a better knowledge about how
to improve the performance of their firms, for example through adjustments in communication
methods or strategic decision capacities.
Originality/value – This work is innovative in the sense that it confirms the influence of human
capital on social capital, and shows that it is cognitive ability that affects organizational performance.
Description
Keywords
Performance Human Capital Social Capital Small to Medium Sized Enterprises Cognitive Ability
Pedagogical Context
Citation
Felício, J. Augusto; Eduardo Couto and Jorge Caiado. (2014). “Human capital, social capital and organizational performance”. Management Decision, Vol. 52 No. 2: pp. 350-364
Publisher
Emerald Group Publishing Limited