THE IMPACT OF SOCIAL CAPITAL ON MARKET EXPLORATION AND EXPLOITATION WITH MEDIATING ROLE OF INTERNAL COMMUNICATION

Year 2017, , 355 - 363, 30.12.2017

F. Gulruh Gurbuz Mujdelen I. Yener Zeynep Kabadayi Kuscu

https://doi.org/10.17261/Pressacademia.2017.768

Abstract

Purpose – Present
study aims to test the mediating role of internal communication on the
relationship between social capital and market exploration and exploitation,
and to link the impact of market exploration and exploitation to the firm
performance.

Methodology
-  The hypotheses derived from
the literature were tested on a sample of 173 information technology firms in
Turkey. Survey data was gathered through questionnaires which were applied to
the managers of the firms. Relationships among variables were analyzed through
structural equation modeling using Amos 25.0 statistical tool. 

Findings- Internal
communication's full mediating impact on the relationship between social
capital and market exploitation and exploration was supported. In return,
market exploration was found to have a significant impact on firm performance
which was measured by quality, innovation, reputation and customer
satisfaction. 

Conclusion- Social
capital is an antecedent for an effective internal communication and should be
well established in the firms. Internal communication has an impact on both
market exploration and exploitation activities, thus it should be supported and
encouraged within the firms. Market exploration activities should not be
neglected since they may contribute to firms’ performance especially in the
long run.         

Keywords

Social capital, internal communication, market exploration, market exploitation, research paper

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