Managing Social Capital - Papers work groups
Topic 1. Social Capital and Performance.
Parzefall, M-R. & Kuppelwieser, V.G. (2012)
In the context of organizations, the concept of social capital is used to refer to ‘the character of social
relations within the firm’. Social capital outcomes have been examined mainly as relatively tangible
goods or as financial gains that benefits either the organization or the individual, often drawing on
the resource-based view of the firm product innovation, intellectual capital, employee turnover
rates, promotions and career success.
Two broad perspectives ;
1. As a micro-level phenomenon focusing on individuals
2. As a macro-level phenomenon occurring at the intra-organizational and inter-organizational
level
Positive effect of networks for individuals.
Social capital does not only highlights the structural but also the cognitive and relations ties between
individuals and how these ties enable collective action and help to align the members of the
organization.
Think of the strong and weak ties, which would be better? A closed or a dense network?
Theorizing on social capital suggests that stability in the relationships between the members of a
given unit plays a key role in the creation and maintenance of social capital. The internal ties which
are necessary for the continuity in order to develop social capital.
The relationships will increase when successful exchange experiences accumulate and exchange
partners come to anticipate each other’s behaviour. Exchange partners learn to trust each other.
Stability derives from job security and continuity.
Any form of uncertainty and instability can be argued to undermine the development of meaningful
relationships organizational change typically implies restructuring and even lay-offs, leading to
changes in employees’ colleagues and work routines. Which affects the stability there on the
relationship and the performance, and in the end the social capital.
Social capital requires not only security and stability but also resources and willingness on the part of
employees to spend time with others, to collaborate, to network and to share knowledge. But these
relationships / ties have investment and maintenance costs. So you could argue that weaker ties are
more effective than close and strong ties because they are less costly to maintain.
When the employees have too much ties to maintain and the workload is getting higher,
they will have less time for the activities that are crucial to generating and maintaining social
capital ; so high workload is negatively related to social capital of the employee perspective.
Social exchange theory ; individuals do not only reciprocate directly the source of the benefits
received, but also other parties implicated in the social exchange processes.
Topic 1. Social Capital and Performance.
Parzefall, M-R. & Kuppelwieser, V.G. (2012)
In the context of organizations, the concept of social capital is used to refer to ‘the character of social
relations within the firm’. Social capital outcomes have been examined mainly as relatively tangible
goods or as financial gains that benefits either the organization or the individual, often drawing on
the resource-based view of the firm product innovation, intellectual capital, employee turnover
rates, promotions and career success.
Two broad perspectives ;
1. As a micro-level phenomenon focusing on individuals
2. As a macro-level phenomenon occurring at the intra-organizational and inter-organizational
level
Positive effect of networks for individuals.
Social capital does not only highlights the structural but also the cognitive and relations ties between
individuals and how these ties enable collective action and help to align the members of the
organization.
Think of the strong and weak ties, which would be better? A closed or a dense network?
Theorizing on social capital suggests that stability in the relationships between the members of a
given unit plays a key role in the creation and maintenance of social capital. The internal ties which
are necessary for the continuity in order to develop social capital.
The relationships will increase when successful exchange experiences accumulate and exchange
partners come to anticipate each other’s behaviour. Exchange partners learn to trust each other.
Stability derives from job security and continuity.
Any form of uncertainty and instability can be argued to undermine the development of meaningful
relationships organizational change typically implies restructuring and even lay-offs, leading to
changes in employees’ colleagues and work routines. Which affects the stability there on the
relationship and the performance, and in the end the social capital.
Social capital requires not only security and stability but also resources and willingness on the part of
employees to spend time with others, to collaborate, to network and to share knowledge. But these
relationships / ties have investment and maintenance costs. So you could argue that weaker ties are
more effective than close and strong ties because they are less costly to maintain.
When the employees have too much ties to maintain and the workload is getting higher,
they will have less time for the activities that are crucial to generating and maintaining social
capital ; so high workload is negatively related to social capital of the employee perspective.
Social exchange theory ; individuals do not only reciprocate directly the source of the benefits
received, but also other parties implicated in the social exchange processes.
