THE MEDIATING ROLE OF SOCIAL CAPITAL IN THE RELATIONSHIP BETWEEN ENTREPRENEURIAL STRATEGY AND FIRM PERFORMANCE: EVIDENCE FROM DEVELOPING COUNTRY

Abstract In today's era of globalization and intense competition, the survival of recently established companies presents a significant challenge. Numerous studies have attempted to identify the critical factors for these nascent entrepreneurial ventures, yet the findings remain fragmented. This investigation concentrates on assessing the impact of Entrepreneurial Strategy (ES) and Social Capital (SC) on the performance of new entrepreneurial enterprises. Data was collected from 181 registered firms situated in Jordan's burgeoning market through a structured questionnaire. The outcomes validate the proposed hypotheses, revealing a positive correlation between ES, SC, and firm performance (FP). Particularly noteworthy is the robust positive relationship observed between ES and SC with FP via SC. In the Jordanian context, organizations demonstrate a propensity to leverage SC to enhance FP, albeit with relatively less emphasis on the linkage between ES, SC, and FP. It is recommended that Jordanian enterprises integrate interpersonal connections into their strategic frameworks. The research advocates for owners and managers of new ventures to cultivate effective ES and broaden their networks with external entities (such as other firms, governmental bodies, and financial institutions) to access valuable resources, thereby enhancing performance. The study also underscores the importance of policymakers and relevant authorities in fostering and supporting new ventures as contributors to economic development. Additionally, practical implications and suggestions are deliberated upon.