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Universitas Bung Hatta
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Vol.
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July 2024 ISSN : 1907-6576 .
ISSN : 2615-5370 .
The Role of Social Capital in Innovation and Performance: Evidence From Women Owned SMEs in a Matrilineal Society Donard GamesA*.
Resky Putri Ananda2.
Dessy Kurnia Sari3.
Asmi Abbas4.
Sanda Patrisia Komalasari5.
Bader Albatati6
1,2,3,4
Department of Management.
Universitas Andalas.
Indonesia Department of Management.
Universitas Andalas.
Indonesia College of Advertisement.
University of Business & Technology.
Saudi Arabia Abstract Women-owned small and medium-sized enterprises (SME.
may have difficulties in establishing networks and business partnership.
This is in particular because they may have limitations in building social interaction, which in turn enhances their entrepreneurial activities and business performance.
However, this may differ in matrilineal such as Minangkabau, where women have privileges, including in business They are inherited ancestral properties such as land and houses that can be seen as valuable assets in starting and developing businesses.
Therefore, it is interesting to know whether women-owned SMEs in Minangkabau can benefit from social capital, more specifically, bridging social capital.
This type of social capital signifies social interaction with weak ties or new people from new places.
This paper aims to examine the relationships between social capital, innovation, and performance in the context of womenowned SMEs in Minangkabau.
We employed a quantitative approach using smartPLS 4.
Data were analyzed from 100 women-owned SMEs in Padang, the capital of West Sumatra.
It was found that bridging social capital is significantly and positively related to innovation and performance.
Additionally, innovation mediated the relationship between bridging social capital and women-owned SME Accordingly, promoting bridging social capital and innovation to women-owned SMEs is an effective way to enhance business performance.
This may confirm that women-owned SMEs need to expand their social interaction with new people and from new places.
In this case, they can benefit from digital technology facilitating this and increase their degree of innovation.
Keywords: social capital.
women owned SMEs.
matrilineal society Received:March 18th, 2024 Revised: July 11th, 2024 *Corresponding author: donardgames@eb.
Introduction Women entrepreneurship in matrilineal societies can be influenced by the unique social, cultural, and economic dynamics that exist within such communities.
Matrilineal societies are characterized by descent and inheritance being traced through the female line, and these societies can be found in various parts of the world, including as suggested by Blackwood .
Minangkabau which is as suggested by considered as the largest matrilineal system in the world.
Accepted: July, 15th , 2024 Minangkabau society, indigenous to the West Sumatra region of Indonesia, is known for its unique matrilineal kinship system and cultural practices (Bahauddin, 2.
In Minangkabau society, women play significant roles in the family, economy, and community, which can have implications for women entrepreneurship.
Social capital focuses on the networks and social connections that individuals and communities have, which can be valuable resources for achieving various goals, including economic and Management Department.
Faculty of Economics and Business.
Universitas Bung Hatta
Jurnal
Manajemen
Universitas Bung Hatta
ISSN
: 2615-537
Vol.
No.
July 2024 entrepreneurial success (Lyu et al.
, 2.
The concept of social capital can be explored in the context of a matrilineal system.
Minangkabau society, indigenous to the West Sumatra region of Indonesia, is known for its unique matrilineal kinship system and cultural practices.
Minangkabau society, women often play significant roles in the family, economy, and community, which can have implications for women entrepreneurship (Games et al.
, 2.
Minangkabau women have historically been involved in various economic activities, including trade, agriculture, and handicrafts.
This tradition of economic involvement has paved the way for women to engage in entrepreneurship.
Women entrepreneurs can benefit from social networks and support from their families and communities.
These networks can offer advice, resources, and assistance in starting and growing businesses.
Women entrepreneurs in Minangkabau society may identify market opportunities that align with local cultural practices or products.
This cultural authenticity can be a competitive advantage in both local and global markets.
In brief.
Minangkabau society's unique cultural and economic dynamics, including its matrilineal kinship system and traditional roles, can both empower and pose challenges to women business owners.
The notion of social capital can be explored in the context of a matrilineal system, where descent and inheritance are traced through the female line.
Matrilineal societies emphasize community and mutual support.
Women within these communities may have access to broader social networks that can offer assistance, mentorship, and connections in the business world.
These connections can facilitate entrepreneurship and access to markets.
In matrilineal societies, women may have established roles in the local These roles can lead to the development of social capital as women interact with others in their economic activities, building relationships and trust that can be leveraged in entrepreneurial Cultural norms in matrilineal societies ISSN : 1907-6576 .
ISSN : 2615-5370 .
can promote trust and cooperation among women and within the community (Blackwood, 2.
This trust can be a valuable form of social capital, as it fosters collaboration and support for women Social capital can provide access to resources beyond financial assets, such as knowledge, skills, information, and market connections (Curado & Bontis, 2.
Women in matrilineal systems may benefit from these resources through their social networks.
For these reasons, the present study uses bridging social capital that refers to open networks encompassing people across various social divisions (Putnam.
Therefore, cultivating and nurturing social capital should be a strategic priority for small businesses especially women-led SMEs seeking to foster innovation.
Social capital networks enable small businesses to form collaborations and partnerships with other firms, research institutions, or organizations.
These collaborations can lead to joint innovation efforts, where businesses pool resources, share ideas, and develop new products or services together.
Literature Review There is little research examined the links between social capital, innovation, and performance in the context of women-led SMEs in a matrilineal system such as Minangkabau.
Poon et 's .
study of entrepreneurship in Vietnam pointed out the essential role of bridging capital in increasing high-growth small businesses especially women entrepreneurship.
As suggested by Games et al.
, bridging social capital that indicates capabilities to establish networks with new people and new places, but this research did not specifically focus on women-led SMEs.
Accordingly, comprehensive understanding of the role of bridging social capital in enhancing women entrepreneurship in the context of Minangkabau matrilineal system.
From the explanations above, we postulate some hypotheses as follows:
Management Department.
Faculty of Economics and Business.
Universitas Bung Hatta
Jurnal
Manajemen
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ISSN
: 2615-537
Vol.
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July 2024 H1.
Bridging social capital is positively and significantly related to women-led SME H2.
Women-led SME innovation is positively and significantly related to women-led SME H3.
Women-led SME innovation mediates the relationship between bridging social capital and women-led SME performance.
Methods The present study employed a quantitative approach using smartPLS 4.
Data were analyzed from 100 women-owned SMEs in Padang, the capital of West Sumatra.
We conducted surveys ISSN : 1907-6576 .
ISSN : 2615-5370 .
from October and December 2022.
We approached 150 women SME owners, and a total of 100 usable responses were obtained.
All respondents were sent an online questionnaire explaining the study's The scales used to measure these constructs are well-established and have had good measurement properties in prior research.
In terms of independent variables .
ocial capita.
, we use bridging social capita.
in which the items were adopted from Williams .
In terms of the dependent variable .
, we use items suggested by Bradley et al.
All items can be seen in Table 1.
All the items were measured on a 5-point Likert-type rating scale .
= strongly 5 = strongly agre.
Table 1.
Measures used in this study Construct Items Bridging social capital Interacting with other people makes me want to try new things Source:
I am willing to spend time supporting community activities Williams.
Interacting with other people makes me meet new friends I often interact with new people Differentiation-related The way I make products/services is different from what competitors have done.
The way I distribute my product/service to the market is different from my Source: Bradley et al.
The way I distribute my product/service to the market is different from my My product or service meets a consumer need that has not been met before There are many products or services that I offer, but I can explain them better to attract consumers than my competitors.
In running my business.
I try to find ways to make my product or service less expensive or less expensive than competitors.
SME performance Source:
Noel During the last 1-3 years, the overall performance was better compared to West, 2009.
Shoham During the last 1-3 years the business growth performs better than competitors & Lev .
During the last 1-3 years, different goals have been established with good Source: authors .
Management Department.
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July 2024 Results and Discussion ISSN : 1907-6576 .
ISSN : 2615-5370 .
, fashion .
, handicraft .
The vast majority of respondents .
can be classified as millennials or Generation Z.
They are well-educated, as the majority of them .
have graduated from In terms of respondents' backgrounds, majority of women-led SMEs come from SMEs that were established less than five years.
They come from various type of businesses such as food various universities.
Additionally, the links between the variables included in the empirical analysis and the descriptive statistics are shown in Table 2.
Table 3 shows the square root of AVE of all constructs greater than the correlation with other constructs, indicating the establishment of discriminant validity for this study Table 2.
Means, standard deviations and correlation among study variables Variables Mean Min Max Bsc Inn Bridging social SME innovation Performance Source: authors .
Table 3.
Measurement model results Cronbach
AVE
Differentiation-related innovation Performance Variables Bridging social capital Source: authors .
] Table 4.
PLS path results Original Sample (O) T-statistics P-Values H1: Bridging social capital Ie SME H2: SME innovation Ie SME performance 0.
H3: Bridging social capital Ie SME innovation Ie SME performance Source: authors .
The Structural model To assess the quality of our structural model, we evaluated predictive validity using the coefficient of determination (R.
that shows that the model introduced explains 42 percent of the variance of differentiation-related innovation and 57 percent of the variance of SME performance.
Management Department.
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ISSN
: 2615-537
Vol.
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July 2024 Table 4 shows the path coefficients associated with each of the hypothesized direct effects in our model, along with the respective significance levels (P valu.
Table 4 showed that bridging social capital was found to be positively and significantly ( = 581.
P value < 0.
related to SME performance, hence supporting H1.
Additionally.
SME innovation was found to be positively and significantly ( = 0.
P value < 0.
related to SME performance, therefore supporting H2.
Lastly.
SME innovation was found to be positively and significantly mediated the link between bridging social capital and SME performance ( = 0.
value < 0.
Discussion The role of bridging social capital has been confirmed for both SME innovation and performance in this study.
This means that bridging social capital can contribute positively to womenled SME innovation and performance.
This is in line with previous studies .
Games et al.
, 2023.
Rhaiem & Amara, 2021.
Bradley et al.
, 2.
that emphasized the importance of bridging social capital and innovation.
This is encouraging as Minangkabau women can see their social interaction with new people and new place as a way to enhance innovation and business performance.
In the past.
Minangkabau men are seen as those who are capable of building bridging social capital since they experience merantau .
oluntary migratio.
(Games et al.
, 2.
The present study confirms that Minangkabau women even if they have small enterprises in Minangkabau origin in West Sumatra, they need to establish bridging social capital.
Matrilineal entrepreneurship especially among Minangkabau men who tend to migrate (Games et al.
, 2.
The present study found that Minangkabau women who are seen as limpapeh rumah gadang .
he guardian of big hous.
need to expand their business horizon by benefitting from new people and new places.
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other word, they need to gain trust not only from inner-groups, but also from out-group in order to establish business partnership.
Women-led SMEs in this study are predominantly young women .
ged less than .
This may indicate the emergence of new type of women entrepreneurs in Minangkabau: those who embrace openness to changes to innovate based on collaboration or partnership through bridging social capital.
A study by Games et al.
has confirmed that highgrowth entrepreneurs embrace open-mindedness.
In addition to that, more specifically.
Bulanova et .
suggested that high-growth women entrepreneurs need to include fun and excitement while they are running their businesses.
They may see business activities, including social interaction, as fun activities and enjoy the process of implementing innovation.
Conclusions The present study has found some findings that can enrich entrepreneurship and gender research, especially with regard to social capital and small business innovation.
Regarding theoretical contributions, we emphasized the importance of bridging social capital in enhancing innovation and performance in women-led SMEs in Minangkabau.
Minangkabau matrilineal system indeed has given opportunities for Minangkabau women to conduct entrepreneurial activities even though they may not opt to do so.
The present study confirms that if women want to become successful entrepreneurs, they need to establish networks from out-groups .
ridging social capita.
In the past, perhaps it is sufficient to gain trust from strong ties such as families and friends.
The present study confirms that it would have been better for Minangkabau women entrepreneurs to establish networks through bridging social capital.
In terms of managerial implications.
Minangkabau women can play their role as limpapeh rumah gadang and business owners by benefitting from resources including digital innovation.
Additionally, combining bridging social capital and innovation Management Department.
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ISSN
: 2615-537
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July 2024 can lead to women-led SME performance.
This means that bridging capital and innovation are The present study focused on the bridging social capital, innovation, and performance of Minangkabau women-led SMEs in West Sumatra.
Indonesia.
The present study analyzed the data from relatively small size .
from ranah (West Sumatr.
and most of them come from young generations.
Future studies need to expand their research that include women-led SMEs from Minangkabau in rantau .
utside West Sumatr.
Future research can also compare or explore the social capital .
ridging and bondin.
of other ethnic groups or from gender and generational Additionally, we found that women SME owners can benefit from online social capital as they use online platforms such as social media and websites as ways to enhance business Therefore, future research can investigate the relationships between online social capital, innovation, and SME performance.
Future research can also focus on particular groups of women entrepreneurs, such as entrepreneurs, startups, and minority groups.
From the findings of the present study.
policymakers can assess women entrepreneurs on their specific characteristics, such as the commitment to bridging social capital in the broadest sense.
Those who are showing their preferences to innovate through bridging social capital .
ew people from new place.
are regarded as SMEs with high-growth aspirations.
Policymakers in this case can facilitate business matching, partnership and investment that include References