The Role of Social Capital in the Activities of Internationalized Food Processing SMEs. Confrontation of Theoretical Findings with Empirical Ones

Abstract

The main objective of this paper is to identify the role of intangible factors in the process of enterprise internationalization. In particular, in the era of turbo-capitalism, the informal institution of social capital becomes of global significance and covers both social norms and values such as trust, loyalty and reliability. These resources can significantly reduce the uncertainty and distrust in the activities of business entities. In addition, they constitute the foundation of business networks, including in particular those of an informal nature, which (in the case when a company does not possess sufficient resources and skills) can become an important method to gain new knowledge about unknown foreign markets. The partnership within networks also allows for the reduction of transaction costs. Thus, it can forego gaining competitive advantage in the international arena. Therefore, the article raises three fundamental questions about the role of social capital in the internationalized business. The answers to these questions are based on the results of empirical research conducted in the years 2011-2012 among food processing SMEs in selected districts of Greater Poland.