Impact of Information Accessed Through Social Capital on Rational Ability of Owner Manager Small Enterprises in Sri Lanka
European Business & Management
Volume 3, Issue 4, July 2017, Pages: 65-75
Received: Jun. 26, 2017; Accepted: Jul. 11, 2017; Published: Oct. 23, 2017
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H. M. S. Priyanath, Department of Economics and Statistics, Sabaragamuwa University of Sri Lanka, Belihuloya, Sri Lanka
S. P. Premaratne, Department of Economics, University of Colombo, Colombo, Sri Lanka
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The study explored how information accessed through Social Capital (SC) affect the improvement of rational ability of Owner Manager Small Enterprises (OMSEs) in Sri Lanka. Data were collected from 373 Small Enterprises (SEs) located all the Provinces in Sri Lanka, conducting face to face interviews with respondents. The data were analysed using Partial Least Squares-Structural Equation Modelling. The results provided sufficient evidences to conclude that information access through different dimensions of SC (structural, relational and cognitive) have significant positive effects on the improvement of rational ability of OMSEs in Sri Lanka. The empirical results expand the understanding the relative efficacy of SC and rational ability in the context of SEs in a less develop country and deliver an alternative insights for policy makers to develop SEs by creating a conducive environment for strengthening SC of SEs in order to access more information.
Information Asymmetric, Owner Manager Small Enterprises, Rational Ability, Social Capital, Transaction Costs
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H. M. S. Priyanath, S. P. Premaratne, Impact of Information Accessed Through Social Capital on Rational Ability of Owner Manager Small Enterprises in Sri Lanka, European Business & Management. Vol. 3, No. 4, 2017, pp. 65-75. doi: 10.11648/j.ebm.20170304.12
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This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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