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The Role of Social Capital on Firm Growth: The Case of Small Enterprises in Sri Lanka

The Role of Social Capital on Firm Growth: The Case of Small Enterprises in Sri Lanka

Volume 2 Number 1, Spring 2011 pp. 54-71(18)
Research Article
2011/3/1
Nishantha, B.
The purpose of this study is to assess the impact of social capital in the form of networks on the growth of small enterprises. Survey data was collected from a sample of 97 small manufacturing enterprises in Sri Lanka. The data was analyzed through principle component factor analysis and multiple linear regression models. It was found that organizational networks and supportive networks are important for enterprise growth. In particular, for organizational networking and network maintenance, sharing resources with small enterprises and supportive networks with financial institutions are associated with the significant and positive growth of small enterprises.
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