The Effect of Social Capital in Buyer-Supplier Relationship on Supply Chain Exchange Process and Performance: Focused on Korean Manufacture Social Enterprises

TOPIC 9-STAGE 1-MESO Recently, the effective supply chain management studies find its methods to bring an innovation to supply chain from social capital, which enables the resources find the best practice position by... [ view full abstract ]

TOPIC 9-STAGE 1-MESO

Recently, the effective supply chain management studies find its methods to bring an innovation to supply chain from social capital, which enables the resources find the best practice position by exchanging and allocating. Despite the attention, what kind of factors are actually being exchanged or how they are exchanged within buyer-supplier relationships, and how social capital contribute to the exchange is not well understood. And these issues are especially critical to the circumstances of Korean Social Economy, where the newest social enterprises(including co-operatives, have been dynamically emerged in last 5-10 years, with poor resources and community support. Therefore, this study develop a model linking social capital formed between buyer-supplier relationship, to supply chain performance, and their parameters, the exchange process of supply chain. Firstly, this study evaluates how social capital between Buyer-Supplier Relationship in its cognitive, relational, and structural forms contributes to exchange process of supply chain. Secondly, it tests how the exchange process, both relational exchange and resource exchange, contribute to supply chain performance. Further, we applied PLS-SEM methods on the data provided by a survey of 100 social enterprise(including co-operatives, social enterprises, community-based businesses) purchasing managers in Korea. The results show cognitive and structural capital contribute to both exchange process of supply chain, however, relational capital only affects relational exchange. Also, relational exchange contributes to supply chain performance where resource exchange does not. This study extends the supply chain management and inter-organizational social capital literature and suggests important implications for both research and practice.