The Impact of Social Capital, Managerial Human Capital and Managerial Knowledge Structure on Firm Performance

Abstract

This article aims to examine the relationships between external and internal social capital, managerial human capital, and managerial knowledge structures, respectively. It also examines the effect of managerial human capital and managerial knowledge structures on firm performance in the telecommunications sector in Jordan. A questionnaire was distributed to 250 managers in the telecommunications sector in Jordan. Utilizing structural equation modeling, it was found that external social capital has a positive significant effect on internal social capital and managerial human capital. Internal social capital has positively and significantly affected managerial knowledge structures. Furthermore, both managerial human capital and managerial knowledge structure had affected firm performance positively. As technology is expanding in this sector, relevant knowledge and information is becoming a source of competitive advantage, thus managers in this sector should build beneficial ties that might enhance human resources' capabilities that benefit the decision-making processes.