EFFORTS TO BUILD SOCIAL CAPITAL IN IMPROVING MARKETING PRODUCT MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs).

  • Post graduate student at Agriculture Science Study Program, Universitas Andalas, Indonesia / AgriculturePolytechnic of Payakumbuh, Lima Puluh Kota 26271 West Sumatera, Indonesia.
  • Agribusiness Department, Faculty of Agriculture, Universitas Andalas, Indonesia.
  • Economics Department, Faculty of Economics, Universitas Andalas , Indonesia
  • Agribusiness Department, Faculty of Agriculture, Universitas Andalas, Indonesia.
Crossref Cited-by Linking logo

  • Abstract
  • Keywords
  • References
  • How to Cite This Article
  • Corresponding Author

Social capital is a social relationship that can provide tangible benefits to the development of the organization, therefore it can be further understood as a resource. Social capital is seen as being able to increase the productive activities of business marketing. One proof of social capital is needed in marketing, especially in establishing business networks and cooperation for marketing, and therefore needs to be built to be well maintained. The purpose of this study is to analyze the use of social capital and efforts to build social capital in public companies in marketing products. This research uses a quantitative descriptive approach. Data obtained through in-depth interviews and direct observation. This study was conducted on 98 respondents of micro small and medium enterprises engaged specifically in local food processing. The results showed that MSMEs entrepreneurs in Payakumbuh, Indonesia had utilized social capital for product marketing activities such as trust, norms, networks, this was also encouraged by efforts to build social capital so that it continued to exist among business actors so that it could be utilized for marketing. The existence of social capital can encourage the solution of marketing problems through the improvement of business networks. Social capital that is built well by MSMEs can be a means to increase marketing.

  1. Abdullah, M.A., &Hoetoro, A. (2011). Social entrepreneurship as an instrument to empowering small and medium enterprises an islamic perspective. J. Manag. Bus. Res.1(1): 35-46.
  2. Casidy,R., Nyadzayo, M., &Mohan,M.? (2019). Service innovation and adoption in industrial markets: An SME perspective. Industrial Marketing Management? In Press. Available Online 24 june.
  3. Dowling, M., O?Gorman,C.,? Puncheva, P., &Vanwalleghem,V. (2019). Trust and SME attitudes towards equity financing across Europe. Journal of World Business,? 54 : 101003.
  4. Fatoki, O.O. (2011). The impact of Human, Sosial and Fnancial Capital on the Performance of Small Medium Entreprises in South Africa. J soc, sci. 29(3): 193-204.
  5. Felzensztein, C., Brodt, E., &Gimmon,? E. (2014). Do strategic marketing and social capital really matter in regional clusters? Lessons from an emerging economy of Latin America. Journal of Business Research, 67(4): 498-507.
  6. Fernandes, S., Belo, A., &Castela, G. (2016). Social networkenterprisebehaviorsandpatternsinSMEs:Lessons fromaPortugueselocal communitycenteredaroundthetourism Technology and society, 44:15-22. Doi.org/10.1016/j.techsoc.2015.11.004
  7. Gilmore, A., Carson, D., & Rocks, S. (2006). Networking in SMEs: Evaluating its contribution to marketing activity. International Business Review, 15 : 278?293
  8. Hern?ndez-Carri?n, ,Camarero-Izquierdo,? C., ,&Guti?rrez-Cill?n, J . (.2019). The internal mechanism of entrepreneur?s social capital : A multi-network analysis.. BRQ Business Research Quarterly. In Pres.
  9. Herman, E. (2012). SMEs and their Effect on theRomanian Employment. Procedia Economic and Finance. 3 , 290-297. Doi.10. 1016/s2212-5671(12)00154-2
  10. Ibrahim, H.S., Amanah, D.S., Gani, dan Purnaningsih, N. (2013). Analisis keberlanjutan usaha Pengrajin Ekoonmi Kreatif Kerajinan Sutera di Provinsi Sulawesi Selatan. Jurnal Teknologi Industri Pertanian 23(3) : 2010-2019.
  11. Ioanid, A., &Deselnicu,C. (2018).The impact of social networks on SMEs' innovation potential. Procedia manufacturing, 22 : 936-941.
  12. Iturrioz, C., Aragon, C., &Narvaiza, L. (2015). How to foster shared innovation within SMEs networks: Social capital and the role of intermediaries. Manage. J. 33:104 -115.
  13. Lin, F., & Lin, Y. (2016).. The effect of network relationship on the performance of SMEs. Journal of Business Research . 69 (5) : 1780-1784.
  14. Narooz, R., & Child, J. (2017).Networking responses to different levels of institutional void: A comparison of internationalizing SMEs in Egypt and the UK.International Business Review, 26 (4) : 683-696.
  15. Ollila, P. (2006). Principle of Institusional Economics with Aplication to Cooperative Entreprise. Working papers. No.56. Departemens of economics. Helsinki University.
  16. Rehm, S., &Goel, L. (2017). Using information systems to achieve complementarity in SME innovation networks. Information & Management, 54 : 438?451.
  17. Sadiku-Dushi, N., Dana, L., &Ramadani, (2019). Entrepreneurial marketing dimensions and SMEs performance. Journal of Business Research 100:86?99.
  18. Sarma, M., Dewi, F.R &Siregar, E.H.. (2014). Small and household? footwear industry Development toward? Business sustainability and facing the China-ASEAN free Trade Agreement. Manajemen IKM, 9(1): 67-75.
  19. Send, S., & Cowley, J. (2013). The relevancy of stake holder theory and social capital theory in the contect of CSR In SMEs, An Australian perspective. Bus. Ethnic. 118: 413-427.
  20. Sudi, A., &Atay, E. (2014). GlobalInnovationandKnowledgeManagementPractice in Small and MediumEnterprises (SMEs) in TurkeyandtheBalkans. Procedia. Social and behavioral science. 150: 1260-1266. Doi: 10.1016/j.sbspro.2014.09.142.
  21. Sutopo, I. (2011). ProduktivitasdanKetahananBisnisIndustri Kecil ( studiempirisindustri batik tulistrusmikecamatanpleredkabupatencirebon. Dinamikakeuangandanperbankan 3(1): 102-112.
  22. Yasir, M., Majid, A., Ahmad, I., &Tabassum, N. (2011). Structuring Intelectual Capital As An Element of virtual Organization in the SME Cluster. International Conference on Advanced management Science IPEDR 19 IA CSIT Press, Singapore. 175-181.
 

Elviati, Yonariza, Endrizal Ridwan and Hasnah (2019); EFFORTS TO BUILD SOCIAL CAPITAL IN IMPROVING MARKETING PRODUCT MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)., Int. J. of Adv. Res., 7 (08), 344-352, ISSN 2320-5407. DOI URL: https://dx.doi.org/10.21474/IJAR01/9511

Elviati
Post graduate student at Agriculture Science Study Program, Universitas Andalas, Indonesia/ Agriculture Polytechnic of Payakumbuh

DOI:

Article DOI: 10.21474/IJAR01/9511      
DOI URL: https://dx.doi.org/10.21474/IJAR01/9511

Download Full Paper

Download PDF No. of Downloads: 14 | No. of Views: 66