Summary Managing Social Capital
Theme 1: Social Capital Theory – Lecture
History of social capital theory
Classical and neo-capitalists theories
Multilevel & social network perspectives
What is Marx view on capital?
Capital = part of surplus value, a product of an investment process
o Surplus value: products of capitalists sold at a higher price (user value)
Capitalization = investment process, in which surplus value is produced and captured by a
class
Marx’s perspective
Exploitative relations between two classes
View on society: dichotomous
Neo-capitalist theories
1. Human Capital theory (Becker, 1964/93)
Human capital = individual knowledge, skills, abilities and other traits (KSAOs)
Main tenets of this theory
a. Education and training are an important form of capital
b. Individuals have choice in what KSAOs to “invest”
c. Labor market determines the value of an individual’s human capital
2. Cultural capital theory (Bourdieu, 1990)
Cultural capital = investments on part of the dominant class (regular people) in reproducing a set
of symbols and meanings of the bourgeoise (upper class)
Forms and functions of cultural capital
o Embodied cultural capital: the form of knowledge that resides within us (upbringing and
experience)
o Objectified cultural capital: material objects we use to indicate social class (e.g.,
artworks, books)
o Institutionalized cultural capital: the way society measures social capital (e.g., formal
degrees)
➢ Function: People use cultural capital to maintain their status and exclude others
3. Psychological capital theory (Luthans, 2002; Doci et al., 2022)
PsyCap = Having high levels of (a) self-efficacy, (b) hope, (c) optimism, (d) resilience
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, Key findings and assumptions
o PsyCap is trait-like, but can be developed
o Facilitates individual (and firm) performance
Critical perspective (Doci et al., 2022)
➢ PsyCap is rooted in different social learning trajectories due to inequalities in society (different
social expectations, learning opportunities, role models, etc.)
o People's abilities to cultivate and enhance their PsyCap are influenced by the social contexts in
which they live. Societal inequalities, such as differences in education, social norms, and
resources, can create barriers that hinder certain individuals or groups from fully developing
their PsyCap.
Different forms of capital
Multilevel perspectives
Differences in social capital between/within individuals
o How do individuals invest in social relations (e.g., mentorships)?
o How do individuals generate a return from social relations (e.g., feedback seeking)?
Differences in social capital between groups
o How do certain groups develop social capital (e.g., how does trust in teams facilitate
knowledge-sharing)?
o How do such collective assets enhance group member's life chances (e.g., does being
part of a student association provide more access to study resources)?
Social network perspective
Network structure:
Network ties:
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,Special network structures: small world
Special ties: brokerage and bridges
Brokerage refers to the position or role that an individual occupies in a network, where they act as
an intermediary or connector between other individuals or groups who are not directly connected to
each other. The broker typically controls the flow of information, resources, or opportunities
between different parts of the network.
A bridge refers to a specific tie or relationship between two individuals or groups that are from
different social circles or communities. It represents a direct connection between otherwise
disconnected parts of a network. --> weak tie
While both brokerage and bridge involve connecting different parts of a network, brokerage refers to
the position or role of an individual as an intermediary between disconnected groups, whereas a
bridge represents a specific tie that directly connects individuals from different social circles or
clusters.
The strenght of weak ties
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, The strength of weak ties lies in their ability to provide access to new information, bridge different
social groups, offer diverse job opportunities, and facilitate the diffusion of information and influence
throughout a social network.
Broader access to information
Bridge between social groups
Broader job opportunities
Information diffusion and influence
Conceptualizing & measuring social capital
Lin 1999 - definition of social capital
Social capital can be defined as resources embedded in a social structure which are accessed and/or
mobilized in purposive actions.
This definition has three important ingredients:
1. resources embedded in a social structure (structure);
2. accessibility to such social resources by individuals (accessibility); and
3. use or mobilization of such social resources by individuals in purposive (use).
Lin (1999) – Embedded resources perspective
What types of embedded resources does Lin distinguish?
Network resources = resources embedded in an individual's social network that are directly
accessible
o Indicators: range of resources, best resource, variety of resources, composition
(average resources) --> number of colleagues
Contact resources = resources embedded within contacts that are used as helpers in an
instrumental action
o Indicators: contact's occupation, authority, or sector (wealth, status, power)
Lin (1999) – Network location perspective
Assumption: Key to social capital is the location of individuals in a network
➢ Dense networks may be more suitable for preserving or maintaining resources
➢ Weak ties are more useful for obtaining resources not presently possessed
Lin (1999) – Measurement
1. Embedded network resources
Through a survey:
Range of possible resources (e.g., number of colleagues)
Best possible resources (e.g., expert opinion)
Variety of resources (e.g., interdisciplinary research)
Composition of resources (e.g., all colleagues at assistant prof. level)
2. Embedded contact resources
Wealth, status, power of the contacts (e.g., editorial board member)
3. Name generator with a content-frame (here: personal matter)
➢ Problem: Bias towards strong ties (availability bias)
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