Empirical Study Of Private Entrepreneurs Social Capital And Business Innovation

Private enterprises are fresh troops of national economy in China. They grow fast and make great contributions to the social development. How to accelerate the development of private enterprises has become an important problem in Chinese society. Along with the continuous development of economic and knowledge globalization, the competition between enterprises is increasingly drastic and competitiveness increasingly depends on the level of enterprises'innovation capacity. From the perspective of sociology, the key of enterprises'technological innovation lies in acquiring and exploiting knowledge through external and internal social capital. Due to small scale and few employees, entrepreneurs'personal abilities and resources are particularly important to the innovation of their enterprises. Therefore, it's of value to find out how private entrepreneurs'social capital improves innovation of their enterprises.First, this paper reviews the relevant existing theoretical and empirical research results, including technological innovation theory, managerial innovation theory, social capital theory and studies on the relationship between entrepreneurs'social capital and enterprises'innovation. Based on summing up the key findings of existing studies and limitation of research methods, the paper puts forward a concept model of the relationship between private entrepreneurs'social capital and enterprises'innovation, then studies the relationship between four key factors of entrepreneurs'social capital and enterprises'technical innovation performance and managerial innovation.Secondly, using the 2006 survey of Chinese private enterprises, this study attests those hypotheses through several methods such as factor analysis and multiple regression analysis. The final results show there is significant positive correlation between private entrepreneurs'social capital and enterprises'technical innovation performance and managerial innovation, that is to say private entrepreneurs'educational achievement, relation of guilds, political pursuit and social investment can raise the level of innovation. From the standard regression coefficient we find that among these four factors educational achievement has the most impact on enterprises' technical innovation performance and managerial innovation, showing that social capital coming from the private entrepreneurs'own quality is the most important factor which influences enterprises'technical innovation performance and managerial innovation to a bigger extent.Finally, the paper summarizes theoretical contributions of this study, and puts forward some corresponding recommendations for China's private enterprises and private entrepreneurs. Therefore, the conclusions of this paper are of a certain reference value. They are theoretical basis for China's private entrepreneurs to nurture and develop social capital and enhance their enterprises'innovation.