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Does a Micro-Macro Link Exist Between Managerial Value of Reciprocity, Social Capital and Firm Performance? The Case of SMEs in China

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  • Wei-ping Wu
  • Alicia Leung

Abstract

With the deepening of China's economic reform, SMEs are starting to gain tremendous economic momentum and play an increasingly irreplaceable role in China's century-long bid for economic resurgence. Using a micro-macro link approach, this study investigates the effects of managerial value of reciprocity on both social capital and firm performance in China's rural SMEs. A structural equation modelling method was used to test hypotheses. Data from 177 SMEs in China provide supporting evidence that there exists a micro-macro link from managerial value of reciprocity, to social capital (trust) and to firm performance (both overall performance and competitiveness improvement). Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Wei-ping Wu & Alicia Leung, 2005. "Does a Micro-Macro Link Exist Between Managerial Value of Reciprocity, Social Capital and Firm Performance? The Case of SMEs in China," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 445-463, December.
    • Handle: RePEc:kap:asiapa:v:22:y:2005:i:4:p:445-463
    DOI: 10.1007/s10490-005-4119-7
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    3. Lee, Seung-Hyun & Makhija, Mona & Paik, Yongsun, 2008. "The value of real options investments under abnormal uncertainty: The case of the Korean economic crisis," Journal of World Business, Elsevier, vol. 43(1), pages 16-34, January.

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