Social Capital in Organizations - A Conceptual Frame Work

10 Pages Posted: 24 Feb 2013

See all articles by Jeganathan Shanthilakshmi

Jeganathan Shanthilakshmi

Sardar Vallabhbhai Patel International School of Textiles and Management

S. Ganesan

Suguna Spark Business School

Date Written: February 23, 2013

Abstract

The business scenario world-wide, be it competitive or monopolistic, demands everyone in the business to formulate the strategies for their sustainability. One of the most accepted views of experts for sustainability of the business is creating the customer base, by creating a kind of trust and strong network for the business. A business organisation can create a trust and strong network relationship with suppliers, customers, and other organisations and the relationship is habitual and characterised by trust, open communication, and joint problem solving. The key ingredient in every case of successful business is something less tangible, less blatant, but more powerful than the market factors such as high barriers to entry, non-substitutable products, a large market share, buyers with low bargaining power, suppliers with low bargaining power, rivalry among competitors. The potential of the firm to create competitive advantage depends not solely on its own resources but also on its relationship with other firms. Hence, successful external relationship is increasingly recognised to be critical to the survival and success of organisations. Social capital is a catalyst which nurtures the successful external relationship. This paper further explores the concept of social capital and the ways in which it can be developed in organizations.

Keywords: social capital, organizational network, internal social capital, trust, relationship

Suggested Citation

Shanthilakshmi, Jeganathan and Ganesan, S., Social Capital in Organizations - A Conceptual Frame Work (February 23, 2013). Available at SSRN: https://ssrn.com/abstract=2223177 or http://dx.doi.org/10.2139/ssrn.2223177

Jeganathan Shanthilakshmi (Contact Author)

Sardar Vallabhbhai Patel International School of Textiles and Management ( email )

Ichchhanath
Surat Ichchhanath
Surat, GA Gujarat 395007
India

S. Ganesan

Suguna Spark Business School

Kallipalayam, Tamil Nadu
India

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