Abstract

This study investigates the influence of social capital on the innovation performance of small and medium-sized enterprises (SMEs). The study collected data from 117 questionnaires completed by agri-food SMEs in the Coquimbo region of Chile. An innovation index was developed using multivariate analysis for the agri-food sector, and the effect of each explanatory variable related to social capital was examined. The findings contribute to the existing literature by highlighting that social capital has a positive impact on innovation performance in SMEs. Consistent with prior research, the different dimensions of social capital do have varying degrees of influence on innovation performance. Furthermore, the study revealed that the absorptive capacity, as an individual internal attribute, positively moderates the relationship between some variables of social capital and innovation performance.