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The impact of social capital on mass customisation and product innovation capabilities

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  • Min Zhang
  • Fiona Lettice
  • Xiande Zhao

Abstract

Social capital with customers has three dimensions: structural, relational and cognitive capital. We propose a research model on the joint effects of the three dimensions of social capital on mass customisation capability (MCC) and product innovation capability (PIC). The hypotheses are empirically tested using structural equation modelling and data collected from 276 manufacturing firms in China. The results show that the three dimensions of social capital contribute to MCC and PIC development through different mechanisms. In particular, cognitive capital has a significant impact on MCC; relational capital significantly influences PIC; and structural capital indirectly associates with both MCC and PIC. We also find that structural capital enhances both relational and cognitive capital. MCC improves PIC and fully mediates cognitive capital’s effect on PIC. The findings extend current understanding about the complex interrelationships among structural, relational and cognitive capital and how to develop MCC and PIC by investing in social capital.

Suggested Citation

  • Min Zhang & Fiona Lettice & Xiande Zhao, 2015. "The impact of social capital on mass customisation and product innovation capabilities," International Journal of Production Research, Taylor & Francis Journals, vol. 53(17), pages 5251-5264, September.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:17:p:5251-5264
    DOI: 10.1080/00207543.2015.1015753
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    Citations

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    Cited by:

    1. Se-Yeon Ahn & So-Hyung Kim, 2017. "What Makes Firms Innovative? The Role of Social Capital in Corporate Innovation," Sustainability, MDPI, vol. 9(9), pages 1-13, September.
    2. Qi, Yinan & Mao, Zhigang & Zhang, Min & Guo, Hangfei, 2020. "Manufacturing practices and servitization: The role of mass customization and product innovation capabilities," International Journal of Production Economics, Elsevier, vol. 228(C).
    3. Frank Wiengarten & Prakash J. Singh & Brian Fynes & Ali Nazarpour, 2017. "Impact of mass customization on cost and flexiblity performances: the role of social capital," Operations Management Research, Springer, vol. 10(3), pages 137-147, December.
    4. Natalia Szozda & Artur Świerczek, 2022. "Upstream and downstream dyad governance within the network structures: Creating supply chain governance for the customized products," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 873-898, June.
    5. Tu LYU & Xiangfeng JI, 2020. "A Meta-Analysis on the Impact of Social Capital on Firm Performance in China’s Transition Economy," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    6. George Onofrei & Hung M. Nguyen & Min Zhang & Brian Fynes, 2020. "Building supply chain relational capital: The impact of supplier and customer leveraging on innovation performance," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3422-3434, December.
    7. Bhamra, Ran & Hicks, Christian & Small, Adrian & García-Villarreal, Enrique, 2022. "Value, product delivery strategies and operational performance in the medical technology industry," International Journal of Production Economics, Elsevier, vol. 245(C).
    8. Nisha Paul Kulangara & Markus Biehl & Edmund L. Prater, 2022. "Environmentally sustainable development initiatives in upstream strategic outsourcing relationships: Examining the role of innovative capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3014-3027, November.
    9. Ruiz-Ortega, María J. & García-Villaverde, Pedro M. & Parra-Requena, Gloria, 2018. "How structural embeddedness leads to pioneering orientation," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 186-198.
    10. Zhang, Min & Guo, Hangfei & Huo, Baofeng & Zhao, Xiande & Huang, Jianbo, 2019. "Linking supply chain quality integration with mass customization and product modularity," International Journal of Production Economics, Elsevier, vol. 207(C), pages 227-235.

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