Human and Social Capital on Social Enterprise Performance: The Role of Competitive Advantage

Abstract

Research aims: This study aims to analyze the effect of human capital and social capital on social enterprise performance in cooperatives in Bengkalis Regency, with competitive advantage as a mediating variable.
Design/Methodology/Approach: This research applies a quantitative approach using the Structural Equation Modeling– Partial Least Squares (SEM-PLS) method. Data were collected through questionnaires distributed to cooperative chairpersons and secretaries, resulting in 154 valid responses. Data analysis was conducted using SmartPLS software.
Research findings: The results indicate that human capital and social capital enhance competitive advantage, which subsequently improves social enterprise performance. Competitive advantage also mediates the relationship between human capital and social capital with cooperative performance.
Theoretical contribution/Originality: This study contributes to the literature by emphasizing the mediating role of competitive advantage in explaining the linkage between intangible resources and social enterprise performance within cooperatives.
Practitioner/Policy implication: The findings provide practical insights for cooperative managers and policymakers to strengthen human resource quality and social networks as strategic efforts to achieve sustainable competitive advantage.
Research limitation/Implication: This study is limited to cooperatives in Bengkalis Regency, which may restrict the generalization of the findings to other regions or social enterprise contexts.