A mediation model between dimensions of social capital

Our paper contributes to the growing research by examining the interrelations between the dimensions of capital and their effects on the international market share of multinational companies in the global contractors industry. Previous works on social capital have failed to study the interrelationships between its dimensions or have proposed models with direct relationships. The current study proposes a multiple mediating model and tests the mediation. In particular, we posit that the relational and resource dimensions play a mediating role in the structural dimension-international market share relationship. A variance-based structural equation modeling (Partial Least Squares) has been applied to a sample made up of 225 global contractors. Our analysis lends support to the importance of the central positions of a firm and their influence on international market share. Moreover, mediation hypotheses posit how the relational and resource dimensions play a critical mediating role in the structural dimension – international market share relationship. Analysis of the data suggest that the dimensions of social capital are interrelated in such a way that the relational and resource dimensions: (a) fully mediate the effect of centrality (structural dimension) on the international share market and (b) exert significant influence on the international market share of each company.

► Strategic management of inter-organizational relationships is essential for firms.
► We study the different effects of social capital dimensions on international market share.
► Our study specifically tests a three-path mediation model.
► Relational and resource dimensions fully mediate the effect of structural dimension on international social capital.
► The resource dimension represents the best predictor of the international market share.