Unequal growth and social capital in clothes-making enterprises in Peru: 1980-2015.





Social capital, Informality, Cloth, Peru and emerging markets


Why do some small companies in the clothing industry fail to grow while others succeed is the conundrum that this study sets out to solve. It does so by identifying and explaining four cases of enterprises with varying performance levels. On the understanding that there are structural and historical conditions that correspond to trends, these cases are explained and the question is answered. Based on the evidence, the article finds that the prevailing inequality is due to the greater or lesser presence of social capital - resources that come from networks and which are accessed through relationships - and to institutional and structural conditions that slow growth. Added to this are the differing responses of enterprises to the negative effects of poor-quality institutions. Following the approach of Nahapiet and Ghoshal, the study explains how an actor can develop certain range of capacities for participating in networks, before stalling as a result of a diversity of conditions.


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Author Biographies

David Wong, Universidad del Pacífico

Profesor principal, Departamento de Finanzas, Facultad de Economía y Finanzas de la Universidad del Pacífico

Investigador, Centro de investigación de la Universidad del Pacífico.

Miguel Chirinos, Universidad Nacional de Colombia

Facultad de Ciencias Económicas

José Carrasco, Universidad del Pacífico

Centro de Investigaciones de la Universidad del Pacífico


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How to Cite

Wong, David, Harold Hernández, Miguel Chirinos, and José Carrasco. 2018. “Unequal Growth and Social Capital in Clothes-Making Enterprises in Peru: 1980-2015”. Journal of Evolutionary Studies in Business 3 (1):198-225. https://doi.org/10.1344/jesb2018.1.j042.