ipl-logo

Social Capital Theory Definition

1308 Words6 Pages
bulb-icon

Recommended: Theories of social capital

2.2 Social capital theory
An important interpretation of social capital recognized by Adler & Kwon (2002) is that the goodwill others have towards a person or company is a valuable resource . In order to understand social capital theory and comprehend how social capital theory can be applied to buyer-supplier relationships - in the field of supply chain management or business context in general - it is important to clarify the patterns and definitions that have emerged from earlier work regarding social capital in different fields of study. After reviewing and discussing social capital in comparison to other forms of capital and different conceptualizations of social capital theory, the definition used in this study will be provided.
2.2.1 …show more content…

The first pattern, widely acknowledged by social network theorists, is that individuals can benefit from their own social capital. They consider social capital as a private good that can be used (for example) for career advancement (Burt, 1997). This view postulates that there is a single actor that acquires and builds social capital through social interactions and relations with other actors and then uses this social capital to gain personal benefits. The second pattern recognized by Inkpen and Tsang (2005) is the conceptualization of social capital as a public good which is an attribute of a social unit and not possessed by an individual. In this way, the availability and benefits are not only enjoyed by the creators but by the entire group (Kostova & Roth, 2003). In this study, social capital is regarded as a public good as it is argued that the company reaps the benefits of the social capital created between two or more individual actors of two …show more content…

These dimensions will be introduced here and further elaborated on during the hypothesis development. The first dimension of social capital is structural capital which is derived from structural embeddedness as imposed by Granovetter (1992). Structural capital refers to the overall configuration of connections between actors (Inkpen and Tsang, 2005) and can be seen as network ties which can be measured in density, connectivity and hierarchy (Nahapiet & Ghoshal, 1998). Structural capital is primarily focused on the frequency and level of interaction between two companies. The second dimension, relational capital, attempts to describe the particular relationship between two actors which is developed through a history of interactions and can explain their behaviour (Granovetter, 1992; Nahapiet & Ghoshal, 1998). Relational capital focusses on the strength of a relationship and is embodied by factors as trust, commitment, respect and reciprocity as imposed by Kale, Singh and Perlmutter (2000) and later adopted by many scholars (e.g. Carey, Lawson & Krause, 2011; Gelderman, Semeijn & Mertschuweit, 2016; Krause et al. 2007). Cognitive capital is the third and final dimension and refers to having shared interpretations, understanding and meaning between network members (Nahapiet & Ghoshal,

Show More
Related

Similarities Between Lee And Truman Capote

183 Words | 1 Pages

Harper Lee and Truman Capote are widely known for their literary works, and both have significantly impacted the success of the other. Sadly, bitterness and rivalry created tension within Lee and Capote’s friendship (Alter). According to “Harper Lee and Truman Capote: A Collaboration in Mischief” by Alexandra Alter, Capote was jealous of Lee’s success, while Lee was offended when Capote did not acknowledge her contribution to his novel In Cold Blood. Thus, the two became distant. June Woo and Waverly Jong, from The Joy Luck Club by Amy Tan, have a strained relationship similar to that of Harper Lee and Truman Capote.

Read More

Peter Bakker's Article 'Accountants Save The World'

382 Words | 2 Pages

In the article Accountants Save the World by Peter Bakker, one of his casual claims is that “to address current economic crises in a systematic way, we must begin to demand a return on social and natural capital as well. ”1 As a result, Bakker felt that shareholders would not recognize a company's' social accomplishments if it is not captured in financial reports. However, it could be that shareholders do not put social capital into financial statements because they believe that the only social responsibility of business is profits, like Milton Friedman. Therefore, demanding a return on social and natural capital would be ineffective if the majority of shareholders agree with Friedman's view.

Read More

Nt1310 Unit 3 Assignment 1 Identify The Areas Of Knowledge

1076 Words | 5 Pages

For example, within a business network the more connections one has, the higher the position they can gain. All networks are self-motivated, transfers knowledge, contains subnetworks, have a set of protocols, rules, can have bad connections and they all have a connection in a common

Read More

Buy Something Like A Piece Of Chocolate Rhetorical Analysis

182 Words | 1 Pages

I feel that Matts main point is that we are built to be in tight groups (tribes) but at the same time we want to connect with all sorts of different people and cultures. He tells us in his article that he went on a trip around the world and made dancing videos with the people he met and what he learned was that people wanted to feel connected. He touches on the topic on how we have a ancient way of thinking when it comes to the type of people we socialize with. He uses the words primate, tribe, primitive, and the phrase caveman brain to show us how we still act today despite those times being thousands of years ago. He gives examples on how were connected financially and by simply being human.

Read More

The Other Wes Moore Literary Analysis

1187 Words | 5 Pages

Social Capital refers to the networks of relationships among people who live and work in a particular society, enabling the society to function effectively. This term is essential to become successful in life. Another factor that can affect an individual is mindsets; this is the established set of attitudes held by someone. The book, The other Wes Moore and the documentary All the Difference both are inspired by the author Wes Moore and his mother Joy Moore. It explores the struggles between two young African American men and their different path in life.

Read More

Small Change Gladwell Summary

827 Words | 4 Pages

He talks about how social media is tied around weak ties, and how Twitter and Facebook is a good way to have many friends or stay in touch with people you usually wouldn’t. But he says that if can be a wonderful thing. “There is strength in weak ties, as the sociologist Mark Granovetter has observed. Our acquaintances--not our friends-- are our greatest source of new ideas and information” (407). Here he is trying to show the good in having loads of internet friends, but explain of that can be a bad thing.

Read More

Aria And The Homeless Got, By Richard Rodriguez

1111 Words | 5 Pages

The author states “If you use Facebook to communicate directly with other individuals-by using the “like” button, commenting on friends’ posts and so on- it can increase your social capital” (Marche 21). Social media helps individuals to keep up with their communities and be more involved. Furthermore, reflecting on my colleagues’ ideas about using social media to connect more with the community, one said Social media can help connect more with the communities that are not close by and can’t see the people in the community face-to-face. Social media is important part of a community that makes individual less isolated. Social media provides quick access to the communities.

Read More

How Social Media Is Affecting Us Positively By Walter Shauma

688 Words | 3 Pages

Social media connects people and forms networks of relationships. For example, in “How Social Media is Affecting Us Positively” Walter Shauma emphasizes that networking sites, such as LinkedIn, have shown to initiate interactions with people that can help others in their careers. By introducing these platforms, users will benefit from career advice that can help them climb up the business ladder. Another example of the sort of community that social media forms can be seen in those

Read More

Your Social Life: Are You A Fox Or A Hedgehog? By Pamela Haag

256 Words | 2 Pages

Social media has created the popularity of many meaningless relationships diminishing the number of true connections among people. The author used the point-by-point organizational style for her essay. This can be seen the clearest in paragraphs

Read More

Annotated Bibliography Essay

544 Words | 3 Pages

An Annotated Bibliography Benna, Steven. " These 16 Insanely Successful College Dropouts Show You Don't Need a Degree." Business Insider. Business Insider, Inc, 01 July 2015. Web.

Read More

Social Bonding Theory Vs Social Learning Theory

1336 Words | 6 Pages

Social learning theory and social bonding theory are two theories that may be compared and contrasted because they both overlap and differ. Although these theories have their similarities and differences, one theory may prove to be more convincing in terms of applying the theory to the understanding of crime and delinquency. Social learning theory refers to Akers’ theory of crime and deviance. Akers attempted to specify the mechanism and processes through which criminal learning takes place by explaining crime and deviance; he did this in such a way that the likelihood of conforming or deviant behavior based on the influence of an individual’s history of learning was accounted for. This theory was based off Sutherland’s differential association theory, which had nine propositions outlining the process by which individuals acquire attitudes favorable to criminal or delinquent behavior with the basic idea that people tend to associate with others in which they come into contact.

Read More

Comparing Aristotle And Kant's Three Forms Of Friendship

637 Words | 3 Pages

When looking at friendship in regards to a community an apparent quality that makes a community function is friendship. Both Aristotle and Kant make important points that are essential to what can make a community driven towards the common good. The common good is going too held up in most cases in the framework of a community by Aristotle’s utility friendship; the next two forms of friendship that are encountered quite regularly are Kant’s forms of friendship of need and taste. Between these three types of friendship one should be able to relate to an acquaintance type of relationship. These friendships resemble many of our interactions that we have with people consistently especially in this culture we are subject to on a regular basis.

Read More

Bourdieu Social Capital Analysis

1429 Words | 6 Pages

It is evident that young people’s experiences in second level education is moulded by the various capital forms. Bourdieu highlights four different types of capital- economic capital, cultural capital, social capital and symbolic capital. Cultural capital, social capital and emotional capital will be discussed in detail throughout this essay. Although Bourdieu doesn’t mention emotional capital he gives us a clear understanding of the other forms of capital and how they are interlinked. Bourdieu contemplates a process which one form of capital can be transformed into another’ (Bourdieu, 1986).

Read More

The Paradox Of Embeddedness Analysis

1151 Words | 5 Pages

Powell's (1990) analysis of the sociological and economic literatures on exchange suggests that transactions can take place through loose collections of individuals who maintain impersonal and constantly shifting exchange lies, as in markets, or through stable networks of exchange partners who maintain close social relationships. The key distinction between these systems is the structure and quality of exchange ties, because these factors shape expectations and opportunities. Brain Uzzi found that most ties between firms were arms-length (i.e., they were greater in frequency) but they were of much lesser significant than the closer, "special", embedded ties.

Read More

The Effect Of Social Media On Self-Presentation Of Self

1047 Words | 5 Pages

It is important however to realise that social comparison can then take place in either upward or downward comparison. (). Social media is in essence driven by social comparison. Balick claims that this is the nature of the social network, as in many ways it “aids and “abets a superficial way of judging both others and the self.”” (Balick).

Read More

More about Social Capital Theory Definition

Related Topics

Open Document