Social capital, knowledge sharing and innovation of small- and medium-sized enterprises in a tourism cluster

Purpose This study aims to identify the structural relationship among social capital, knowledge sharing, innovation and performance of small- and medium-sized enterprises (SMEs) in a tourism cluster. Design/methodology/approach A total of 199 valid questionnaires are collected from SMEs in the Bomun tourism cluster in South Korea. A structural equation modeling approach is used to test the research hypotheses. Findings The findings suggest that social capital constructs, including network density of structural capital, relational capital and cognitive capital, all positively influence knowledge sharing among SMEs in the cluster. This implies that creating social capital is critical to enhancing the competitiveness of SMEs. This study confirms that knowledge sharing positively affects SME performance through innovation. Research limitations/implications This study suggests that social capital, consisting of structural, cognitive and relational capital, facilitates increased knowledge sharing and innovation in a tourism cluster, which in turn enhances SME business performance. Practical/implications This study suggests that tourism cluster policies should focus on how to create a friendly operational climate to build social capital and support SME innovation. Originality/value This study contributes to the literature on social capital and innovation as well as the discourse on tourism clusters by addressing knowledge sharing among SMEs in a tourism cluster. It also expands the knowledge sharing and innovation literature by focusing on inter-organizational social networking among SMEs.