SOCIAL CAPITAL DIMENSIONS IN SMES MANUFACTURING FIRMS IN CENTRAL JAVA: DO THEY MATTER?

This research attempts to analyse factors improving the product innovativeness through the empowerment of social capital.Since there are at least three forms of social capital in the forms of structural, cognitive and relational, this study attempts to examine the effect of those three on the product innovativeness. The study taken the small and medium-sized wood-furniture enterprises in Jepara district, Central Java, Indonesia, as research object. Data were collected by using closed questionnaire method by giving questionnaire to 100 respondent. Data were tested with multiple regression test of the SPSS statistical software. The results show among three forms of social capital, only relational capital that has significant effect on the product innovativeness in small and medium-sized wood-furniture enterprises in Jepara district, Central Java, while the two others have no significant effects.