Building Core Competence in Transitional Economy through Internal Social Capital and Knowledge-based Perspectives

摘要

This study combines social capital theory and knowledge-based perspectives to develop a general model of building core competence. We analyze the model using a structural equation model approach, and 208 manufacturing and service firms in China are selected as the samples of this study. The results conclude that: (1) internal social capital positively affects knowledge energy; (2) internal social capital within the firm is a function of its core competence; (3) the level of knowledge energy will significantly impact on core competence; (4) knowledge energy plays a partial mediating role between internal social capital and core competence. The results suggest that significant benefits can be achieved for the firm's knowledge base and core competence by fostering firm- internal social capital.