Social Capital as a Panacea for the Competitive Advantage of Brewing Firms in South-South Nigeria

Main Article Content

Nosike Joseph Chukwunonso
Arachie Augustine Ebuka
Kekeocha Mary Ezinne
Obi Ngozi Chinyelu


The study examined the nexus between social capital and competitive advantage. Specifically, it examined the relationship between relational capital and flexibility of brewing firms in South-South, Nigeria. The study was fastened on the Behavioral Theory of the Firm (BTF) propounded by Cyert and March (1963). Survey design was used for the study, questionnaire was the data collection tool employed, a population of 1,187 was used, a sample size of 290 was determined using Krejcie and Morgan (1970) sampling technique, Pearson Product Moment Correlation Coefficient analysis was used to analyze the collected data. Findings of the study revealed that the relationship between relational capital and firm flexibility is statistically significant and positive since r=0.85 and p-value > 0.05. Sequel to this, the study concluded that social capital is actually a panacea for the competitive advantage of the studied brewing firms in South-South, Nigeria. Base on this, the researchers recommended that management of the focused brewing firms should strive towards the building of close social ties between the organization and its key stakeholders as it impacts firm flexibility.

Social capital, relational capital, competitive advantage, firm flexibility.

Article Details

How to Cite
Chukwunonso, N. J., Ebuka, A. A., Ezinne, K. M., & Chinyelu, O. N. (2021). Social Capital as a Panacea for the Competitive Advantage of Brewing Firms in South-South Nigeria. Asian Journal of Economics, Business and Accounting, 21(4), 1-8.
Data Article


Bassam A. The role of social capital in enhancing competitive advantage. International Journal of Business and Management Invention. 2017;6(4):66-78.

Guinness Nigeria Plc. The world of Guinness, Lagos: Guinness Nigeria Plc; 2011.

Chima O. Nigeria’s untapped informal sector. Retrieved from This Day website; 2016. Available: sector/.
Accessed January 2021.

Agyapong FO, Agyapong A, Poku K. Nexus between social capital and performance of micro and small firms in an emerging economy: The mediating role of innovation. Cogent Business Management. 2017;4:1-20.

Stam W, Arzlanian S, Elfring T. Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators. Journal of Business Venture. 2014;29:152-173.

Acquaah M. Utilization and value of social networking relationships in family and non-family firms in an African transition economy. European Management Journal. 2011;29:347–361.

Cantner U, Stuetzer M. The use and effect of social capital in new venture creation. Solo entrepreneurs versus new venture teams. Journal of Economic Research. 2010;592-600.

Ndofor HA, Priem R. Immigrant entrepreneurs, the ethnic enclave strategy and venture performance. Journal of Management. 2011;37:790-818.

Bradley SW, McMullen JS, Artz K, Simiyu EM. Capital is not enough: Innovation in developing economy. Journal of Management Studies. 2012;49(4):684-717.

Ozigi O. Social capital and financial performance of small and medium scale enterprises. Journal of Advanced Research in Business and Management Studies. 2018;10 (1):18-27.

Lawson B, Tyler B, Cousins PD. Antecedents and consequences of social capital on buyer performance improvement. Journal of Operations Management. 2008;26:446-460.

Krause D, Handfield R, Tyler B. The relationships between supplier development, commitment, social capital accumulation and performance improvement. Journal of Operations Management. 2007;25(2):528-545.

Lin N. Social capital: A theory of social structure and action. Cambridge: Cambridge University Press; 2002.

Putnam R. The prosperous community: Social capital and public life. The American Prospect. 1993;13:25-42.

Nahapiet J, Ghoshal S. Social capital, intellectual capital and the organizational advantage.Academy of Management Review. 1998;23:242-266.

Bobillo A, Hurriaga F, Gaite T. Firm performance and international diversification: The internal and external competitive advantage: International Business Review. 2010;19:607-618.

Wheelen T, Hunger J. Strategic management and Business policy. (12th ed). Prentice Hall, U.S.A; 2010.

Porter ME. Competitive strategy, techniques for analysing industries and competitors. London: Simon & Schuster; 1980.

Gareche M, Hosseini SM, Taheri M. A comprehensive literature review in competitive advantage of businesses. International Journal of Advanced Studies in Humanities and Social Science. 2017;6 (4):312-329.

Moreno E, Lorente J, Rio J. Environmental human resources management and competitive advantage, management of resources. The Journal of Ibero-American Aca Management. 2012;10 (2):125-142.

Conner T. Managing for competitiveness: A proposed model for managerial focus. Strategic Change. 2003;12(4):195-207.

Brown J. Classification of flexible manufacturing systems. The FMS Magazine. 2014;12:124-131.

Sethi AK, Sethi SP. Flexibility in manufacturing: A survey. The International Journal of Flexible Manufacturing Systems. 2010;8:210-221.

Srivastava SK, Bansal S. Measuring and comparing volume flexibility across Indian firms. International Journal of Business Performance Management. 2013;14(1): 38-51.

Aldrich HE. Organizations evolving, (3rd Edn). Cheltenhan, UK: Reuf Martin; 2020.

Akintimehin OO, Eniola AA, Alabi OJ, Eluleya DF, Okere W, Ozordi E. Social capital and its effect on business performance in the Nigeria informal sector.Heliyon. 2019;5:02024, 1-13.

Se-Yeon A, So-Hyung K. What makes firms innovative? The role of social capital in corporate innovation. Sustainability. 2017;9;1564:1-13.