.The Mediating Role of Social Capital in Success of Urban Entrepreneurs (Case of Study: Businesses Supported by Tehran Municipality)

Subject Areas : Urban Sociological Studies

mohammad javad naeiji ¹ ( Assistant professor, Department of Business Administration, shahid Beheshti University of Tehran, Tehran, Iran )
negar allamehzadeh ² ( Department of Business Administration, shahid Beheshti University of Tehran, Tehran, Iran )

Received: 2020-09-17 Accepted : 2020-09-17 Published : 2020-05-21

Keywords: psychological capital, Social capital, Tehran Municipality, urban entrepreneurship, entrepreneurial success,

Abstract :

The literature on urban entrepreneurship tends to emphasize sociological attributes. This approach reveals considerable insight into how and why entrepreneurial activities emerge, yet much unanswered questions remain about psychological characteristics that are found at the individual-level. Given this theoretical gap in urban entrepreneurship literature, the present study has investigated the effects of two intangible assets- psychological and social aspects- on the success of entrepreneurs. Social capital consists of three dimensions including structural, cognitive and relational that are derived from Nahapiet & Ghoshal (1998) and psychological capital is measured by Luthans et al (2007)’s theory. Entrepreneurial success is tested using a measurement presented by Gorgievski et al (2011) and encompassed both the financial and non-financial parameters. This study has been done on the businesses that are supported by Tehran Municipality. Based on cluster sampling, three clusters randomly were selected from 22 districts of Tehran. A structural equation modeling procedure is applied to the examination of the influences of variables and the research model was tested empirically using a sample of 110 respondents. The results showed that both social capital and psychological capital affected entrepreneurial success and also the mediating role of social capital was confirmed. These results suggest that urban policy makers and municipalities should focus on improving entrepreneurs’ psychological capital, particularly the aspects of hope, self-efficacy and optimism. However, the aspect of psychological capital (resiliency) should not be ignored.

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