ipl-logo

Social Capital Theory Definition

1308 Words6 Pages

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

  • 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

  • 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

  • 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

  • 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

  • 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

  • Technology Neil Postman Analysis

    761 Words  | 4 Pages

    Working together to achieve this shared goal, social harmony, requires efforts made by occasionally conflicting peers bound by their need to pursue their common goal. Postman claims that social media has warped the once meaning of community into a new demolished metaphor for a group of individuals who share common interests. The determining flaw that the current definition presents compared to the traditional is that these similarly minded people conjugate without a concrete and defining goal. It is true that social harmony is not required on the internet; survival of the human race is unavoidable with or without the involvement of the internet. However,

    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

  • 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

  • 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

  • Social Structure Theory

    824 Words  | 4 Pages

    Social structure theories look at the formal and informal economic and social arrangements of society that cause crime and deviance. The negative aspects of social structure such as disorganization within a family, poverty, and disadvantages because of lack of success in educational areas are looked upon as the producers of criminal behavior (Schmalleger, 2012). The three major types of social structure theories are Social Disorganization, Strain, and Culture Conflict (Schmalleger, 2012). Social disorganization theory is based on the idea that changes, conflict, and the lack of social consensus in society are the reasons for criminal behavior. This theory views society as a living organism and that criminal behavior is compared to a disease.

    Read More

  • Data Mining In Authorship Collaboration Paper

    1216 Words  | 5 Pages

    In addition, SNA is the quantitative analysis method applied and related to the study of social relationship especially in authorship collaboration studies. Meanwhile, Cheong & Corbitt (2009) describes SNA is helping to gain an understanding of the nodes (co-authors) and relationships (those who wrote a paper together) in the co-authorship network that consists of structural dimension (centrality) and relational dimension (tie strength). Structural dimension includes the number of relations within a network; the relative access to information each network actor has and the centrality of each network actor (Wise, 2012) while relational dimension governs relationships between individual actors in a network which is measure of tie strength. The findings of the study will be used in determine the links and relationship of the academicians toward improving the quality of

    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

  • The Paradox Of Embeddedness Analysis

    1151 Words  | 5 Pages

    Zukin and DiMaggio (1990) classified embeddedness into four forms: 1. structural, 2. cognitive, 3. political, 4. and cultural. Structural embeddedness is principally concerned with how the quality and network architecture of material exchange relationships influence economic activity.

    Read More

More about Social Capital Theory Definition

Open Document