Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 7

predetermined outcomes (Liao & Welsch, 2005; Tsai &Goshal, 1998). Specially, supporters of this theory observed that regular interactions with other actors in the target entity’s network generates perceived common norms, codes, common interpretations and understanding (Tsai & Ghoshal, 1997; Woolcock, 2001). This leads to developing honesty, mutual respect, trust and subsequent non-opportunistic behavior thus placing the target business in the position to boost its capability for value creation, resource conversion and resultant performance. Several attempts have been made to proffer a definition of SC. These capture combinations of the effect, substance and source of social capital (Adler & Kwon, 2002) e.g. “The goodwill available to individuals or groups that is derived from the structure and content of an actor’s social relations” (Acquah, Amoako- Gyampah, & Nyathi, 2014) and “the sum of actual and potential resources embedded within, available through, and derived from the network of relationships possessed by individuals or social units (Nahapiet & Ghoshal, 1998, p. 243). Although there is no formal definition for the word social capital, there are commonalities in the existing reports. Social Capital, therefore, relates to the social structures and relationships. It encompasses people knowing each other and building on kindness, trust, respect, and reciprocity. In a recent study, Appiah-Gyimah (2018) defined social capital as the cumulative potential and actual resources present, derived, and embedded from the mesh of the relationships owned by a social unit or an individual. c) Conceptual Framework of the Study The independent variables used are the five dimensions of entrepreneurial orientation: innovativeness, risk-taking, competitive aggressiveness, autonomy, and Proactiveness (Lumpkin & Dess, 1996). Business performance represents the dependent variables, as shown below. The variables moderating the relationship between entrepreneurial orientation dimensions and organizational performance are social capital and capability development. Also, there are control variables such as market competition, market uncertainty, technological uncertainty and environmental dynamism. d) The relationship between Entrepreneurial Orientation and Business Performance Entrepreneurial orientation is defined as the behaviors, structures, and processes of an organization characterized by risk-taking, being proactive, and innovativeness, autonomy and competitive aggressiveness. It is a crucial concept applied by business leaders in creating strategies to venture into novel things and take up opportunities (Bonillo, 2017; Lumpkin and Dess 1996). It is also useful for the nation’s business propensity for small-scale business owners to be couched and educated to successfully grow their business and contribute to the nation’s economic well-being. The study sought to test the following hypothesis (dependent vs independent variables); H 1 : Entrepreneurial Orientation can positively affect business performance e) The relationship between the Social Capital of an entrepreneur and Business performance Entrepreneurs in SMEs are key decision makers, especially in developing economies. Their responsibility includes overcoming resources constraints, which limits the successful execution of the The Moderating Factor of Social Capital and Capability Development as Entrepreneurial Orientation Enablers for SMEs Business Performance in Nigeria 43 Global Journal of Management and Business Research Volume XXII Issue VII Version I Year 2022 ( ) A © 2022 Global Journals