Effects of ICT-enabled social capital on inter-organizational relationships and performance: empirical evidence from an emerging economy

ABSTRACT Social capital is an influential concept in understanding why and how some firms do better in inter-organizational relationships (IORs). It is an important factor in developing relationships of trust, making the basis for better collaboration among individuals, groups, and organizations. This paper presents findings from an empirical study of the effect of multiple dimensions of Social Capital and the moderating role of Information and Communication Technologies (ICT) on inter-bank strategic collaboration in Sri Lanka, a developing context. The theoretical model is validated using partial least squares-based structural equation modeling based on survey and secondary data. The findings suggest that there is a strong positive combined effect of social capital and ICT toward inter-firm strategic alliances. The results contribute to both social capital theory and theories of ICT for development. It will also contribute to a more holistic perspective that incorporates social, technical, and organizational aspects for building effective strategies.

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