THE ROLE OF SOCIAL CAPITAL IN MSIs PERFORMANCE IN A DEVELOPING COUNTRY WITH SECONDARY DATA: EVIDENCE FROM INDONESIA

Author: Tulus Tambunan

ABSTRACT

This study examines the role of social capital (SC) on micro and small industries (MSIs)’ performance at the macro level using secondary data. Three indicators used to assess the role of SC of MSI owners/entrepreneurs are the number of clusters, the number of MSIs that are members of cooperatives, and the number of MSIs that have partnerships.  By using export as a performance measure, the scatter diagram findings may suggest that the three SC indicators do have a positive effect on exporting MSIs. However, this research has several weaknesses. One of them is that there is no information on whether those who are members of the cooperative or those with partnerships or MSIs in the cluster are exporting.

Keywords: SC, MSIs, MSMEs, Clusters, Cooperatives, Partnership

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