Social Capital and Organizational Innovation: The Mediating Effect of Entrepreneurial Orientation

Abstract

The present study aims to investigate the impact of social capital on organizational innovation by studying the mediating factor of entrepreneurial orientation in auto parts manufacturers. The statistical population of the study includes the executive managers of Iranian auto parts companies. The collected data was analyzed using the partial least squares structural equation modeling (PLS-SEM) method. The Smart PLS 2.0 software was applied for analyzing data and path modeling with latent variables. Our findings showed that social capital has a positive, significant impact on organizational innovation and entrepreneurial orientation among the staff. Entrepreneurial orientation of the staff in turn affects organizational innovation, which confirms the mediating effect of entrepreneurial orientation on the relationship between social capital and organizational innovation. The findings of the study can help managers of auto parts companies to improve innovative activities and motivate the staff toward entrepreneurial activities.

Keywords: social capital, organizational innovation, entrepreneurial orientation

JEL Classification: M13, M14, M19, L21, O31