Sustaining small businesses in the United States in times of recession: Role of supply networks and social capital

Abstract

Purpose

The purpose of this research is to examine how social capital derived through supply chain networks can help small businesses survive in times of a recession.

Design/methodology/approach

A theoretical framework with the respective propositions is developed, based upon an extensive literature review and a synthesis of evidence from the recent recession in the USA.

Findings

Small businesses need to invest in creating structural, relational and social capital prior to a recession in order to protect themselves from the additional uncertainty. Small businesses can develop social capital relatively easily and inexpensively through their supply chains.

Originality/value

This is the first study that directly investigates relationships among small businesses, social capital, supply chain, and recession. The findings should have a broad effect for countless communities throughout the USA as they depend on small businesses to be drivers of employment and state and local taxes.

Citation

Prasad, S., Tata, J. and Guo, X. (2012), "Sustaining small businesses in the United States in times of recession: Role of supply networks and social capital", Journal of Advances in Management Research, Vol. 9 No. 1, pp. 8-28. https://doi.org/10.1108/09727981211225626