A STUDY ON THE RELATIONSHIP BETWEEN CHINESE PRIVATE ENTREPRENEURIAL SOCIAL CAPITAL AND ENTERPRISE PROFITABILITY BASED ON THE MODERATING EFFECT OF TECHNOLOGICAL ENVIRONMENT TURBULENCE

Abstract

China's private enterprises have made significant contributions to economic and social development, primarily manifested in promoting urban employment, driving technological innovation, generating GDP, and paying taxes. However, the development of China's private enterprises are facing numerous challenges and obstacles, chiefly characterised by insufficient market demand, difficulties in accessing affordable financing, and impediments to transformation and upgrading. Throughout the development process of private enterprises, entrepreneurs have played a pivotal role, and the social capital they build and possess constitutes a crucial factor in advancing enterprise profitability. This study employs empirical data derived from a questionnaire survey of private entrepreneurs in Jiangsu Province, China, to examine the relationship between entrepreneurial social capital and enterprise profitability. Empirical findings reveal that entrepreneurial social capital exerts a positive impact on enterprise profitability. Further study indicates that market, institutional, and technological social capital all have positive impact on enterprise probability. Concurrently, the study identifies that technological environment turbulence moderates the relationship between entrepreneurial social capital and enterprise profitability. Specifically, technological environment turbulence significantly moderates the impact of market and technological social capital on enterprise profitability, whereas its moderating effect on the influence of institutional social capital is not significant. Upon these findings, the paper proposes corresponding policy recommendations from the perspectives of both private entrepreneurs and policymakers.