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

Abstract

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.