Florida International University FIU Digital Commons FIU Electronic Theses and Dissertations University Graduate School 7-5-2016 The ffecE t of Social Capital on Organizational Performance in Different Cultures: A Cross- National Comparison of the United States and South Korea Jung Hyun Song Florida International University, [email protected] DOI: 10.25148/etd.FIDC000712 Follow this and additional works at: https://digitalcommons.fiu.edu/etd Part of the Public Administration Commons Recommended Citation Song, Jung Hyun, "The Effect of Social Capital on Organizational Performance in Different Cultures: A Cross-National Comparison of the United States and South Korea" (2016). FIU Electronic Theses and Dissertations. 2613. https://digitalcommons.fiu.edu/etd/2613 This work is brought to you for free and open access by the University Graduate School at FIU Digital Commons. It has been accepted for inclusion in FIU Electronic Theses and Dissertations by an authorized administrator of FIU Digital Commons. For more information, please contact [email protected]. FLORIDA INTERNATIONAL UNIVERSITY Miami, Florida THE EFFECT OF SOCIAL CAPITAL ON ORGANIZATIONAL PERFORMANCE IN DIFFERENT CULTURES: A CROSS-NATIONAL COMPARISON OF THE UNITED STATES AND SOUTH KOREA A dissertation submitted in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY in PUBLIC AFFAIRS by Jung Hyun Song 2016 To: Dean John F. Stack Steven J. Green School of International and Public Affairs This dissertation, written by Jung Hyun Song, and entitled The Effect of Social Capital on Organizational Performance in Different Cultures: A Cross-National Comparison of the United States and South Korea, having been approved with respect to style and intellectual content, is referred to you for judgment. We have read this dissertation and recommend that it be approved. _______________________________________ N. Emel Ganapati _______________________________________ Milena Neshkova _______________________________________ Allan Rosenbaum _______________________________________ Richard Tardanico _______________________________________ Meredith Newman, Major Professor Date of Defense: July 5, 2016 The dissertation of Jung Hyun Song is approved. _______________________________________ Dean John F. Stack Steven J. Green School of International and Public Affairs _______________________________________ Andres G. Gil Vice President for Research and Economic Development and Dean of the University Graduate School Florida International University, 2016 ii © Copyright 2016 by Jung Hyun Song All rights reserved. iii DEDICATION I dedicate this dissertation to my family. Without their patience, understanding, support, and most of all love, the completion of this work would not have been possible. iv ACKNOWLEDGMENTS I wish to thank the members of my dissertation committee for their support, assistance, patience, and kindness. I would like to express my sincere appreciation to the many people who provided support and assistance for the completion of my dissertation. First and foremost, I have to express my deep appreciation to my major Professor, Dr. Newman. This dissertation would not be possible without her supportive guidance and advice and continuous encouragement despite her busy daily schedules. I also would like to thank my committee members, Dr. Allan Rosenbaum, Dr. Emel Ganapati, Dr. Millena Neshkova, and Dr. Richard Tardanico. It is my honor to have wonderful committee members. They provided continuous assistance and support toward my doctoral work. Their suggestions and comments were important for my research. I also extend my appreciation to Dr. Sukumar Ganapati. His consideration and encouragement enabled me to complete this dissertation. Again, I will forever be appreciative of the support of my committee: Dr. Meredith Newman, Committee Chair, Dr. Allan Rosenbaum, Dr. Emel Ganapati, Dr. Millena Neshkova, and Dr. Richard Tardanico. I also would like to thank many people who helped me collect data. Dr. Carol Ebdon at the University of Nebraska Omaha. She emailed each department director to introduce me and my research. Her initial introduction helped me contact the directors and collect data. I want to express my appreciation to the city of Omaha and each department’s directors who allowed me to conduct my research at their organization. For the data for Wonju city, I would like to thank Dr. Eungmann Kang who is the director of v Park Department. He helped me distribute and collect survey questionnaires. Thanks to him, this study achieved a high response rate from Wonju city. Finally, I would like to give great respects and special tanks to my family for all their moral support, love, patience, and belief in me. Also, I want to express my appreciation to Mrs. Judy Rosenbaum. She has been just like my mother in America and helped me live in the United States. I also would like to thank my former advisor in Korea, Dr. Taeryong Kim. He encouraged me to study abroad and always encouraged me to work hard. I am eternally grateful for everything you have taught me about public administration, about life, and about myself. vi ABSTRACT OF THE DISSERTATION THE EFFECT OF SOCIAL CAPITAL ON ORGANIZATIONAL PERFORMANCE IN DIFFERENT CULTURES: A CROSS-NATIONAL COMPARISON OF THE UNITED STATES AND SOUTH KOREA by Jung Hyun Song Florida International University, 2016 Miami, Florida Professor Meredith Newman, Major Professor The main purpose of this study is to analyze the effects of social capital on organizational performance of local government and whether the effect varies across national cultures. The study hypothesized that organizational level social capital in a public sector organization has a positive influence on organizational performance. To investigate the relationship, surveys were sent to public officials of local government organizations in the city of Omaha in the United States and Wonju city in South Korea. Based on Hofstede’s definition of national culture, these two countries contrast strongly on important cultural characteristics. The two cities were selected as typical representatives of each country. Social capital was operationalized as structural, relational, and cognitive, and organizational performance was measured in terms of efficiency, effectiveness, responsiveness, and equity. The surveys were distributed to public officials working in various city departments. The departments were chosen to represent the three main policy types (as defined by Lowi): regulatory policies, distributive policies, and redistributive vii policies. Out of 407 surveys sent, 294 usable and valid responses were received. The data were analyzed using SPSS computer software and included descriptive statistics, ANOVA, Pearson’s simple correlation, t-test, factor analysis, linear regression analysis, dummy regression analysis, and moderator regression. The results showed that organizations with higher levels of structural, relational, and cognitive social capital achieve higher levels of organizational performance. However, the effect of social capital in a public sector organization on organizational performance did not differ across cultures. Rather, within a given culture, the relationship varied by policy type. The findings provide some practical guidelines to government leaders on how to increase social capital to enhance organizational performance. By integrating public organizational theories with social capital literature, this study suggests the determinants of public sector performance. viii TABLE OF CONTENTS CHAPTER PAGE CHAPTER 1: INTRODUCTION…….…………………………………………………...1 Motivation of the Study……………………………………………….…………...1 Statement of Purpose………………………………………………………......4 Significance of the Study……………………………………………………...…...5 Background…………………………………………………………………...…...6 Variables……………………………………………………………………...…...9 Methods, Data Collection, and Sample…………………………………...….…...11 Overview of the Study………………………………………………………….13 CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES…………………………14 Social Capital…………………………………………………………………….14 Introduction…………………………………………………………………14 Background of Social Capital……………………………………………….22 Academic Origin of Social Capital………………………………….22 Formation Background of Social Capital…………………………...24 Contents and Features of Social Capital…………………………………….28 Dimensions of Social Capital……………………………………...28 Functions of Social Capital…………………………………...…...32 Relevance of Social Capital………………………………………………....34 Criticism of Social Capital………………………………………….34 Applicability of Social Capital……………………………………...35 Organizational Performance……………………………………………………...35 Introduction…………………………………………………………………35 Efficiency…………………………………………………………………...40 Effectiveness…………………………………………………………...…...40 Responsiveness…………………………………………………….......…...42 Equity…………………………………………………………………….…43 Social Capital and Organizational Performance………………………………….45 Structural Social Capital and Organizational Performance…………………48 Relational Social Capital and Organizational Performance…………………49 Cognitive Social Capital and Organizational Performance………...……….51 Moderating Influence of Cultures…......................................................................52 Hofstede’s Dimensions of Culture………………………………………….55 Power Distance……………………………………………………...57 Uncertainty Avoidance……………………………………………...58 Individualism/Collectivism…………………………………………58 ix Masculinity/Femininity or Career Success and Quality of Life..........59 Long-term Orientation……………………………………………...60 Agency Type………………………………………………………………..........61 Regulatory