Investing in people and business performance - Social capital theory

7 important questions on Investing in people and business performance - Social capital theory

What is the social capital theory about?

Sc theory focuses on interactions; the potential generated by a network of social relations in organizations that can be used to enable actions.

What is an important resource according to the social capital theory?

Quality of network ties > can increase productivity of relations, exchange partners are willing to help

What are the 3 dimensions of social capitial?

1 Structural social capital : the physical environment #&pattern of connections that people have. It is about bridging. Structural social capital can help chance rela will develop (GOOGLE)

2.  Relational social capital : Quality of relations = bonding. Based on trust.
a. Friendship relations
b. Business relations > social transaction

3. Cognitive social capital : the overall clime in an organization regarding goodwill to share and trust.
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How is SC complemental to HC?

By bridging people, ideas and knowledge will be exchanged in an organization

How is SC nurtured?

By socializing, communication to reinforce and develop relations and build SC

Name 3 possibilities to stimulate the development of SC

  1. Creating opportunities -> structural lay out
  2. Motivate to contribute to SC -> promoting trust, interpersonal liking
  3. Provide resources that facilitate bridging and bonding

Accoring to social capital theory: how does an organization obtain resources for unique capability?

By investing in team structures and positive climate for collaboration -> social connections will be formed with SC = non transparent and non transferable as it lies within people

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