The impact of social capital on mass customisation and product innovation capabilities

Social capital with customers has three dimensions: structural, relational and cognitive capital. We propose a research model on the joint effects of the three dimensions of social capital on mass customisation capability (MCC) and product innovation capability (PIC). The hypotheses are empirically tested using structural equation modelling and data collected from 276 manufacturing firms in China. The results show that the three dimensions of social capital contribute to MCC and PIC development through different mechanisms. In particular, cognitive capital has a significant impact on MCC; relational capital significantly influences PIC; and structural capital indirectly associates with both MCC and PIC. We also find that structural capital enhances both relational and cognitive capital. MCC improves PIC and fully mediates cognitive capital’s effect on PIC. The findings extend current understanding about the complex interrelationships among structural, relational and cognitive capital and how to develop MCC and PIC by investing in social capital.

[1]  Kristopher J Preacher,et al.  Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models , 2008, Behavior research methods.

[2]  Roger G. Schroeder,et al.  The effect of quality management on mass customization capability , 2010 .

[3]  F. Piller,et al.  Cracking the Code of Mass Customization , 2009 .

[4]  Andrew C. Inkpen,et al.  Social Capital, Networks, and Knowledge Transfer , 2005 .

[5]  Roger G. Schroeder,et al.  The relationships among functional integration, mass customisation, and firm performance , 2012 .

[6]  Baofeng Huo,et al.  The impact of dependence and trust on supply chain integration , 2013 .

[7]  J. H. Davis,et al.  An Integrative Model Of Organizational Trust , 1995 .

[8]  M. Zhang,et al.  The effects of trust and coercive power on supplier integration , 2009 .

[9]  Frank T. Piller,et al.  Mass Customization: Reflections on the State of the Concept , 2004 .

[10]  Beverly B. Tyler,et al.  Antecedents and consequences of social capital on buyer performance improvement , 2008 .

[11]  Yi Liu,et al.  Organisational learning, product quality and performance: the moderating effect of social ties in Chinese cross-border outsourcing , 2011 .

[12]  Min Zhang,et al.  The Impact of Supply Chain Integration on Mass Customization Capability: An Extended Resource-Based View , 2012, IEEE Transactions on Engineering Management.

[13]  J. H. Davis,et al.  An integrative model of organizational trust, Academy of Management Review, : . , 1995 .

[14]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[15]  Min Zhang,et al.  The effects of organizational flatness, coordination, and product modularity on mass customization capability , 2014 .

[16]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[17]  Daniel R. Krause,et al.  Social capital configuration, legal bonds and performance in buyer–supplier relationships , 2011 .

[18]  Roger G. Schroeder,et al.  Linking learning and effective process implementation to mass customization capability , 2008 .

[19]  R. Handfield,et al.  Creating supply chain relational capital: The impact of formal and informal socialization processes , 2006 .

[20]  Roger G. Schroeder,et al.  Linking Work Design to Mass Customization: A Sociotechnical Systems Perspective , 2006, Decis. Sci..

[21]  Min Zhang,et al.  The impact of trust and contract on innovation performance: The moderating role of environmental uncertainty , 2011 .

[22]  Cipriano Forza,et al.  Organisation design strategies for mass customisation: an information-processing-view perspective , 2012 .

[23]  Zhang Min,et al.  Postponement strategy from a supply chain perspective: cases from China , 2007 .

[24]  Fabrizio Salvador,et al.  From Mass Production to Mass Customization: Hindrance Factors, Structural Inertia, and Transition Hazard , 2008 .

[25]  Stephen Evans,et al.  Buyer-supplier partnerships during product design and development in the global automotive sector: Who invests, in what and when? , 2010 .

[26]  Satish Nambisan,et al.  DESIGNING VIRTUAL CUSTOMER ENVIRONMENTS FOR NEW PRODUCT DEVELOPMENT : TOWARD A THEORY , 2005 .

[27]  T. S. Ragu-Nathan,et al.  The impact of time-based manufacturing practices on mass customization and value to customer , 2001 .

[28]  Aleda V. Roth,et al.  Decision Sciences Research in China: A Critical Review and Research Agenda - Foundations and Overview , 2006, Decis. Sci..

[29]  S. Zahra,et al.  Absorptive Capacity: A Review, Reconceptualization, and Extension , 2002 .

[30]  S. Ghoshal,et al.  Social Capital and Value Creation: The Role of Intrafirm Networks , 1998 .

[31]  Justin W. Webb,et al.  A multi‐theoretic perspective on trust and power in strategic supply chains , 2007 .

[32]  Shankar Ganesan.  Determinants of Long-Term Orientation in Buyer-Seller Relationships , 1994 .

[33]  Giovani J.C. da Silveira,et al.  Mass customization: Literature review and research directions , 2001 .

[34]  Thomas Y. Choi,et al.  The dark side of buyer–supplier relationships: A social capital perspective⋆ , 2011 .

[35]  Jiali Lv.  Run of the Red Queen: Government, Innovation, Globalization, and Economic Growth in China , 2012 .

[36]  P. Adler,et al.  Social Capital: Prospects for a New Concept , 2002 .

[37]  T. S. Ragu-Nathan,et al.  Unpacking IT use and integration for mass customisation: a service-dominant logic view , 2013 .

[38]  Morten T. Hansen,et al.  Knowledge Transfer in Intraorganizational Networks : Effects of Network Position and Absorptive Capacity on Business Unit Innovation and Performance , 2007 .

[39]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[40]  Rupert L. Matthews,et al.  Social capital, a theory for operations management: a systematic review of the evidence , 2012 .

[41]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[42]  Uma Kumar,et al.  Relationship between quality management practices and innovation , 2012 .

[43]  K. Zhou,et al.  Exchange hazards, relational reliability, and contracts in China: The contingent role of legal enforceability , 2010 .

[44]  James R. Brown,et al.  Power and relationship commitment: their impact on marketing channel member performance , 1995 .

[45]  Qiang Tu,et al.  Measuring Modularity-Based Manufacturing Practices and Their Impact on Mass Customization Capability: A Customer-Driven Perspective , 2004, Decis. Sci..

[46]  S. Ghoshal,et al.  Social Capital, Intellectual Capital, and the Organizational Advantage , 1998 .

[47]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[48]  Kim B. Clark,et al.  Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of , 1990 .

[49]  P. Bentler,et al.  Cutoff criteria for fit indexes in covariance structure analysis : Conventional criteria versus new alternatives , 1999 .

[50]  F. Damanpour.  An Integration of Research Findings of Effects of Firm Size and Market Competition on Product and Process Innovations , 2010 .

[51]  Doris H. Kincade,et al.  Concurrent engineering for product development in mass customization for the apparel industry , 2007 .

[52]  Ramon Casadesus-Masanell,et al.  Open Versus Closed Innovation: A Model of Discovery and Divergence , 2010 .