Corporate Social Capital and the Cost of Financial Capital: An Embeddedness Approach

Uzzi, Brian; Gillespie, James

doi:10.1007/978-1-4615-5027-3_25

Cited by 50 publications

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“…A mix of strong bonds of trust with some jobbers and short-term contracts with others proved most useful. Uzzi and Gillespie (1999) also found that firms with a mix of strong and weak ties were able to obtain more advantageous terms from banks granting small business loans. In a study of the impact of university patents, as measured by citations, Owen- found that research universities lacking ties to commercial partners had less consequential patents, while universities with diverse relations with multiple partners had more high-impact patents.…”

Section: The Consequences Of Connectivitymentioning

confidence: 94%

Networks and Economic life

Powell¹,

Smith-Dor²

2003

Journal of Economic Sociology

210

117

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interests include organization theory, economic sociology, gender and work, and science and technology studies. Smith-Doerr is combining these areas in a book manuscript, Life Chances/Life Sciences, that examines how organizational context shapes career opportunities for life scientists. Based on interviews and field work in universities, government labs and biotech firms, as well as analyses of career data, she illustrates the different sets of constraints faced by female scientists in these diverse settings, and the greater autonomy and flexibility that is afforded in commercial biotech. Walter W. Powell is Professor of Education and affiliated Professor of Sociology,Organizational Behavior, and Communication, and Director of the Scandinavian Consortium for Organizational Research at Stanford University. He is also an external faculty member at the Santa Fe Institute. Powell works in the areas of organization theory, economic sociology, and science and technology studies. He is currently engaged in research on the origins and development of the commercial field of the life sciences.With his collaborators Ken Koput and Doug White, he has authored a series of papers on the evolving network structure of the biotechnology industry. With Jason Owen-Smith, Powell is studying the role of universities in transferring basic science into commercial development by science-based companies, and the consequences for universities of their growing involvement in commercial activities. IntroductionSociologists and anthropologists have long been concerned with how individuals are linked to one another and how these bonds of affiliation serve as both a lubricant for getting things done and a glue that provides order and meaning to social life. The attention to networks of association, which began in earnest in the 1970s, provided welcome texture and dynamism to portraits of social life. This work stood in stark contrast to the reigning approaches in the social sciences. In contrast to deterministic cultural (oversocialized) accounts, network analysis afforded room for human agency, and in contrast to individualist, atomized (undersocialized) approaches, networks emphasized structure and constraint (Granovetter, 1985). Network studies offered a middle ground, a third way, even if no one was quite sure whether networks were a metaphor, a method, or a theory (Barnes 1979). But the sociologists and anthropologists who initially studied networks did not pay sustained attention to economic activity, although some industrial sociologists (Roy, 1954;Dalton, 1959) had long stressed the role of informal networks as an antidote to formal organization practices and structures.Over the past two decades, however, there has been an enormous upsurge of interest in the role of networks in the economy. This sea change has occurred in the worlds of both practice and theory. Across the social sciences, from anthropology to sociology to political science to economics, there is research on the role of networks in shaping such diverse phenomena as mig...

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Section: The Consequences Of Connectivitymentioning

confidence: 94%

Networks and Economic life

Powell¹,

Smith-Dor²

2003

Journal of Economic Sociology

210

117

View full text Add to dashboard Cite

show abstract

“…About this, we used sociological perspectives on complexity to understanding how organizations acquire and manage their relational resources, such as the means by which the social structure has an influence on the allocation of resources [11]. Among these resources, one of the most important is the financial capital, especially for public corporations, whose financing strategies are fundamental to their survival and growth [12].…”

Section: Introductionmentioning

confidence: 99%

“…We therefore seek to assess the cost of capital based on an estimate known as implied, or ex ante, which is based on the forecasts of analysts [17,18], while other studies, like the one by Uzzi [12] and Uzzi and Gillespie [11], were based on ex post estimates, which used the history of the returns achieved.…”

Section: Introductionmentioning

confidence: 99%

The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market

2018

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Starting from sociological perspectives on complexity, we show how the social capital of boards and owners networks affects the implied cost of capital of companies listed on Brazilian stock exchange. We specifically show arguments and evidence that the effect of the relational resources found in the direct, indirect, and heterogeneous board's ties reduces the cost of capital while relational resources embedded in shareholder networks increase the cost of capital. Our results show that while the increase in the relational resources of the board reduces the implied cost of capital, an increase in these shared resources in the ownership relationships of the firm increases the cost of financial capital.

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“…Tal imersão (embeddedness) é, na sua essência, um argumento contrário à lógica de abordar relações diádicas e decisões econômicas de maneira isolada, frequentemente retratada pela teoria econômica clássica (Baker, 1990). A lógica da imersão sugere, assim, que os laços sociais moldam as expectativas, as motivações e o processo decisório dos agentes em rede, incorporando aspectos ligados a confiança nas relações como condicionante (Granovetter, 1985;Uzzi & Gillespie, 1999).…”

Section: Quadro Teórico-empírico De Referênciaunclassified

“…Nesse sentido, entender quão imersas as firmas estão nesses relacionamentos torna-se relevante, dado que os laços sociais moldam as expectativas, as motivações e o processo decisório dos agentes em rede (Uzzi & Gillespie, 1999).…”

Section: Introductionunclassified

Imersão Social Na Cadeia De Suprimentos E Seu Efeito Paradoxal No Desempenho Operacional

Rossoni

Martins

et al. 2014

Rev. adm. empres.

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Este artigo buscou analisar os efeitos da imersão relacional e da imersão estrutural no desempenho operacional das firmas, medido em termos de ganhos de produtividade e de qualidade. O objeto de estudo foi a indústria moveleira, com base em seus laços com clientes e fornecedores. Especificamente, analisamos como a imersão relacional - confiança e solidariedade - reforça a imersão estrutural, que foi avaliada a partir do grau de concentração de fornecedores e clientes das firmas. Foi possível identificar que a imersão relacional teve efeitos positivos nos indicadores de desempenho operacional, porém de maneira distinta: ela afeta a qualidade nas relações com clientes e a produtividade nos laços com fornecedores. Identificamos ainda, dois efeitos paradoxais. No primeiro, níveis baixos de imersão relacional com fornecedores geram efeitos negativos da imersão estrutural na produtividade, mas, em níveis mais altos, esses efeitos são positivos. No segundo, a contradição reside no efeito positivo da combinação dos dois tipos de imersão na produtividade, mas negativo na qualidade.

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Corporate Social Capital and the Cost of Financial Capital: An Embeddedness Approach

Cited by 50 publications

References 0 publications

Networks and Economic life

Networks and Economic life

The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market

Imersão Social Na Cadeia De Suprimentos E Seu Efeito Paradoxal No Desempenho Operacional

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