Major problems faced by Small and medium-sized enterprises (SMEs) all over the world is
limited access to business funds, accounting records, human resource management and
managing their SMEs productively. Part of the solution to address the aforementioned
challenges is inherent in social capital. Social capital provides opportunities for entrepreneurs
to use mutual relationships to access financial and other forms of capital without having to
provide collateral securities. Despite the numerous benefits associated with mobilising social
ties, studies at the firm level and its effect on small business outcomes have not increased as
would have been desired. Previous researches have delved into the usage of social
relationships in organizations, but less attention has been paid to its effect on SMEs.
Limited extant studies on the moderating role of emotional intelligence on the relationship
between social capital and firm performance necessitated this study. The main purpose of this
research was to examine the extent to which Emotional Intelligence (EI) moderates the
relationship between social capital and SMEs performance. More specifically, the research
draws on the resource-based view, emotional intelligence and the social capital theory, to
examine the social network relationships that can be harnessed to improve SMEs
Through extensive literature review, a conceptual framework and empirical results from 717
SMEs, the study employs a confirmatory factor analyses along with hierarchical linear
regression to evaluate a proposed model for understanding the relationships among the
constructs, as well as examining the moderating effects.
The results revealed that social capital has a positive and significant relationship with
emotional intelligence. Moreover, the study also showed that emotional intelligence has a
positive and significant relationship with SME performance.
Lastly, the study found that emotional intelligence enhances the relationship between social
capital and SME performance. SME owner/managers are advised to enact policies that
encourage the establishment of meaningful social networks and also help employees
understand their emotions while creating social capital, as both would help improve the
performance of their firms. The theoretical and practical implications of the results are also
discussed in the thesis.
Edu, F (2021). Social Capital And Small And Medium-Sized Enterprises Performance In Ghana: The Moderating Role Of Emotional Intelligence. Afribary.com: Retrieved May 10, 2021, from https://afribary.com/works/social-capital-and-small-and-medium-sized-enterprises-performance-in-ghana-the-moderating-role-of-emotional-intelligence-1
Frontiers, Edu. "Social Capital And Small And Medium-Sized Enterprises Performance In Ghana: The Moderating Role Of Emotional Intelligence" Afribary.com. Afribary.com, 27 Apr. 2021, https://afribary.com/works/social-capital-and-small-and-medium-sized-enterprises-performance-in-ghana-the-moderating-role-of-emotional-intelligence-1 . Accessed 10 May. 2021.
Frontiers, Edu. "Social Capital And Small And Medium-Sized Enterprises Performance In Ghana: The Moderating Role Of Emotional Intelligence". Afribary.com, Afribary.com, 27 Apr. 2021. Web. 10 May. 2021. < https://afribary.com/works/social-capital-and-small-and-medium-sized-enterprises-performance-in-ghana-the-moderating-role-of-emotional-intelligence-1 >.
Frontiers, Edu. "Social Capital And Small And Medium-Sized Enterprises Performance In Ghana: The Moderating Role Of Emotional Intelligence" Afribary.com (2021). Accessed May 10, 2021. https://afribary.com/works/social-capital-and-small-and-medium-sized-enterprises-performance-in-ghana-the-moderating-role-of-emotional-intelligence-1