Fostering innovation in small businesses through university–industry collaboration: revisiting the role of social capital

Purpose Despite extensive research on university–industry collaborations (UICs), the collaborative dynamics involving small businesses remain underexplored. Small businesses face unique challenges, including limited resources, distinct innovation priorities and adaptation needs. Given this backdrop and recognising the importance of social capital in shaping UICs, this study explores how social capital shapes collaboration and fosters innovation within small businesses engaged in UICs. Design/methodology/approach Adopting social capital as the theoretical lens, this study employs a qualitative research design. It draws on 40 interviews, including 13 from four Knowledge Transfer Partnership case studies in England and 27 expert interviews with key stakeholders. The data were analysed thematically. Findings Our findings show that the three dimensions of social capital are critical in enabling small businesses to foster innovation through UICs. Structural capital enables support and flexibility; relational capital builds trust and sustains the engagement between partners, and cognitive capital supports the development of shared meaning and knowledge co-creation. Originality/value This study contributes to the UIC and social capital literature by offering comprehensive perspectives on the three dimensions of social capital. It advances understanding not only of what social capital does but also how it emerges and is embedded in practice to strengthen collaboration between universities and small businesses. The conceptual framework explains how these dimensions interact to support innovation within resource-constrained contexts, offering insights for policymakers, universities and small businesses to strategically develop social capital to enhance entrepreneurial ecosystems and drive sustainable innovation.