Within the context of a mixed methods design involving two related studies, this thesis investigates social capital, knowledge acquisition, and firm value-creation as sources of business performance in two cohorts of Malaysian SMEs. Study 1 tests an hypothesized model of network relationships on a cohort of 208 Malaysian SMEs. Study 2 concerns three in-depth case studies, extending findings emanating from Study 1. Underpinned by social capital theory, the knowledge- and resource based view of the firm, and the organizational capability view, the present thesis proposes an integrative conceptual framework that encompasses social capital, knowledge acquisition, firm value-creation, and business performance. The most important empirical findings derived from Study 1 involve the significant causal relationships between social capital, knowledge acquisition, firm value-creation, and business performance, demonstrating that social capital theory, the knowledge- and resource-based view of the firm, and the organizational capability view are appropriate platforms for grounding investigations of business performance. In terms of Study 2, a cross-case analysis shows that each component of network relationships is integral for achieving business performance. Understanding how network structures promote intra- and inter-organizational knowledge transfer as well as value-creation processes help to enhance our understanding of organizational capabilities. Findings reveal that strategies regarding network relationships held by business managers, relating to external market contacts (i.e., customers, suppliers) and industry players (competitors), are significant sources of social capital. Identifying and managing network relationship sources (i.e., internal versus external networks) are important, in order to organize and strategize intangible embedded resources (e.g., knowledge) for deployment of network relationship benefits as firm social capital. Overall, this thesis provides complementary views, where respective theories (i.e., social capital, organizational capability) inform different but interrelated aspects of organizational strategy geared to achieving business performance, through organizational management practices involving relationships between various organizational forms and arrangements of network relationships.
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