MODEL OF THE MEDIATING ROLE OF OPEN INNOVATION BETWEEN SOCIAL CAPITAL AND SMES PERFORMANCE SUCCESS IN GUANGDONG, CHINA

Abstract

This study presents a comprehensive model examining the mediating role of open innovation in the relationship between social capital and the performance success of Small and Medium-sized Enterprises (SMEs) in Guangdong, China. In the context of an increasingly globalized world and rapid advancements in technology, it is crucial to comprehend the intricate interplay among social capital, open innovation, and the performance of Small and Medium-sized Enterprises (SMEs). Through a structured survey of SMEs in Guangdong, data were collected and analyzed using a structural equation model. The results reveal a significant positive correlation between social capital and SMEs' performance success. Notably, open innovation emerges as a crucial mediator in this relationship, signifying its pivotal role in channeling the influence of social capital towards enhanced SME performance. These findings contribute valuable insights for practitioners and policymakers seeking to optimize the interplay between social capital and open innovation, fostering a conducive environment for SME performance success in Guangdong, China.