Embedding Human Capital, Social Capital and Cultural Capital in Entrepreneurial Networking Practices: Cases of Small Manufacturing Firms in the Southern Part of Malaysia

Networking relationship is considered a significant component of successful entrepreneurship. The purpose of social networking in business practices is to build social interaction and to maintain professional relationships with relevant stakeholders. No previous study has examined the impact of entrepreneurial capital on networking practices in Johor. The current study attempts to investigate effects of entrepreneurial capital elements on networking practices in manufacturing firms in Johor. In this exploratory study, qualitative approach was used to explore the subjective nature of entrepreneurial capital. In-depth face to face interview with six owners of small and medium enterprises (SMEs) manufacturing companies was conducted and analyzed with method of Miles and Huberman (1994). The findings show that three capital elements namely, human capital, social capital and cultural capital are important in entrepreneurial networking. Since majority of the entrepreneurs were second generation of their parent's business, it was observed that family business background is a critical factor in establishing new business. This study provides substantial insights about the importance of three capital elements in entrepreneurial networking and their practical implications.