How can executives build social capital by affecting and, in some cases, manipulating structure, culture, strategy, inter-company networks and stakeholder orientation?
The absence of a systematic approach towards social capital theory could inhibit the development of social capital as a vital driver of business success (Villalonga-Olives & Kawachi, 2015). Exploring organizational factors and how they may impact social capital offers practical implications for executives and top managers to improve outcomes at the organizational level and meet their business objectives (Akintimehin et al., 2019). Executives willing to succeed in today’s hypercompetitive global environment will need to consider social capital as a foundation that helps organizations prosper. This article contributes to practice by identifying the ways in which to build social capital in companies. In addition, 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. In this article, I use Nahapiet and Goshal’s (1998) application of social capital theory as a theoretical underpinning.
Author: Mostafa Sayyadi
Cite as: Sayyadi, M. (2019). What Can Executives Take From Social Capital Theory? Muma Business Review 3(21). 237-244. https://doi.org/10.28945/4462