What Can Executives Take From Social Capital Theory?

Abstract

The purpose of this article is to synthesize the current literature on social capital theory in the field of management. The contribution to the management literature lies in presenting a theoretical framework that incorporates the organizational factors that may impact the three dimensions of social capital. The literature, to date, has failed to provide a comprehensive framework which incorporates all of the contextual factors that may simultaneously impact social capital. The absence of this systematic approach inhibits the development of social capital as a vital driver of business success. Exploring these organizational factors and how they may impact offers practical implications for executives and top managers to improve outcomes at the organizational level and meet their business objectives. This article also contributes to practice by identifying the ways in which to build social capital in companies. In doing this, I use Nahapiet and Goshal’s (1998) application of social capital theory as my basis for grounding this study and adding to the research.