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Summary Articles - Managing social capital (60040-B-6)

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Managing social capital (60040B6)

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Tilburg University (UVT)

Summary of ALL the articles for MSC Theme 1 (THEORY): Social Capital Theory #1 Lin, N. (1999). Building a network theory of social capital. Connections, 22, 28-51. #2 Nahapiet, J. & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Managemen...

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Managing social capital (60040B6)

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1 - Summary of "Building a Network Theory of Social Capital" by Nan Lin (1999)

Theoretical Reasoning
Nan Lin's paper aims to build a coherent theory of social capital by grounding it in the
embedded resources within social networks. He emphasizes the importance of
understanding social capital as resources available in social networks, arguing that
deviations in conceptualization and measurement can lead to confusion in analyzing causal
mechanisms in both macro- and micro-processes. Lin situates social capital within the
broader context of capital theories, tracing its roots back to Marx and expanding it through
human, cultural, and social capital theories

Methodology
Lin's methodology involves a thorough review of the existing literature on social capital,
identifying key controversies and debates. He proposes a model that includes
conceptualizations, measurements, and causal mechanisms of social capital, discussing
how social networks can be used to capture and mobilize resources. He also discusses
various measurement techniques for social capital, such as saturation surveys, name
generators, and position generators, emphasizing the importance of network locations and
embedded resources

Empirical Findings
Lin's empirical findings highlight the role of social networks in facilitating access to resources
and opportunities. He identifies three key elements of social capital: information flow,
influence, social credentials, and reinforcement, which help individuals achieve better
outcomes in both instrumental and expressive actions. He also discusses the impact of
network structures, such as bridges and structural holes, on accessing and mobilizing social
capital

Implications
The implications of Lin's work are significant for both theoretical and practical applications.
He argues that understanding social capital as embedded resources in social networks can
enhance the analysis of social processes and outcomes. Lin also highlights the potential of
cybernetworks as a new form of social capital, suggesting that the rise of the internet and
digital communication networks could revolutionize the way social capital is built and utilized.
He calls for further research into the impact of cybernetworks on social capital, particularly in
terms of globalization and social mobility

, 2 - Summary of "Social Capital, Intellectual Capital, and the Organizational
Advantage" by Janine Nahapiet and Sumantra Ghoshal (1998)

Theoretical Reasoning
Nahapiet and Ghoshal's paper explores how social capital facilitates the creation of
intellectual capital and how this process provides an organizational advantage. They argue
that organizations, due to their structure and dense social capital, are better positioned than
markets for creating and sharing intellectual capital. They frame their analysis within the
theory of the firm, contrasting it with traditional market failure theories, and propose that
social capital within organizations enhances knowledge creation and sharing capabilities,
thereby providing a distinctive advantage

Methodology
The authors employ a theoretical framework to link social capital and intellectual capital.
They define social capital in terms of three dimensions: structural, relational, and cognitive.
These dimensions encompass various aspects such as network ties, trust, norms, and
shared narratives. By integrating these dimensions, they develop a model to hypothesize the
relationships between social capital and the processes necessary for creating intellectual
capital. Their methodology involves synthesizing existing literature and theoretical
perspectives to build their arguments

Empirical Findings
Nahapiet and Ghoshal's findings suggest that social capital significantly impacts the creation
and exchange of intellectual capital. They identify that high levels of trust, shared language,
and effective network structures enhance the ability to combine and exchange knowledge.
They also highlight the role of social interactions and relationships in facilitating knowledge
creation, emphasizing that the organizational context provides a fertile ground for these
processes. Their empirical analysis shows that organizations with rich social capital can
better leverage intellectual resources, leading to superior performance and competitive
advantage

Implications
The implications of their work are profound for both theory and practice. By demonstrating
the importance of social capital in knowledge creation, they suggest that organizations
should invest in building and maintaining strong social networks and relational ties. This
investment can lead to increased innovation and better knowledge management practices.
Additionally, the paper suggests that understanding the dynamics of social capital can help
organizations design better strategies for knowledge sharing and collaboration, ultimately
leading to sustained competitive advantage

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