Abstract

This study aims to determine the moderating effect of environmental turbulence on the relationship among firm performance, entrepreneurial orientation, entrepreneurial management, and social capital. Along with survey on Indonesia SMEs, the finding shows that social capital plays pivotal role on firm performance. This study also provides evident that that environmental turbulence dampens the positive impact of social capital on firm performance. Under low environmental turbulence, social capital has positive impact on firm performance. However, social capital brings negative impact on firm performance during high environmental turbulence. This provides more fundamental issues on intersection between resource based view (RBV) and contingency theory (CT).

 

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