Study of the Effect of the Employees Social Capital on the Entrepreneurial Performance of Rural Cooperatives Regarding the Mediating Role of Employees Organizational Commitment

according to Iran development plans, rural cooperatives development and entrepreneurial performance is a necessity for rural development. Studies show their performance is influenced by employee`s social capital. Nevertheless, there has been little investigation of the social capital as a basis for people participation and a driver of entrepreneurial performance. On the other hand, organizational commitment is one of the basic strategic factors of entrepreneurial performance on which the entrepreneurial orientation will success due to existence of organizational identity. The purpose of this study is to investigate the effect of employees' social capital on the entrepreneurial performance of Rural Cooperatives through organizational commitment.

The type of research is descriptive-correlation. The statistical society of this study was composed of employees and managers of Rural Cooperatives of Sanandaj which was 680. The sample size was estimated to 246 people which their data was randomly gathered using standard questionnaires of social capital, entrepreneurial orientation, and organizational commitment. Finally, results are analyzed with structural equation modeling.

The Findings indicated that social capital of employees has a positive and significant effect on the entrepreneurial performance of Rural Cooperatives. Also result showed that organizational commitment has a positive and significant effect on cooperatives entrepreneurial performance as well as a mediating role in the relationship between social capital and entrepreneurial performance.

social capital is rooted in the employee`s daily relationship on which trust and shared values would be developed. So it is expected that their entrepreneurial performance improve due to employees social capital increase. Also employees that have a good social relationship with their colleagues as well as organizational goals are expected to have more organizational commitment and entrepreneurial orientation. So it is suggested to have an enforcing organizational culture to foster such relationships on which the employee`s commitment and entrepreneurial performance of rural cooperatives developed, to advance job security of free workers through insurance options and to enhance employee job satisfaction through motivation plans.