Asia Pacific Journal of Management

, Volume 25, Issue 1, pp 71-91

First online:

Social capital and cross-selling within financial holding companies in an emerging economy

  • Cheng-Min ChuangAffiliated withNational Taiwan University
  • , Chih-Pin LinAffiliated withDepartment of Business Administration, Aletheia University Email author 

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Social capital is the goodwill available to individuals or groups from their network of relationships. It is widely believed that social capital is useful in facilitating and governing hazardous transactions. But how social capital, in the context of a financial holding company (FHC), actually facilitates cross-selling is unknown, especially in an emerging economy. This article maintains that effective cross-selling requires an FHC to first access and accumulate comprehensive and tacit customer-specific knowledge (the “where from” condition) and then share and leverage this knowledge to other applicable business opportunities (the “where to” condition). The role of social capital and embedded ties is found to be critical to this process. Finally, we argue that the major route for the effective cross-selling within an FHC is from the commercial banking division to the underwriting division. Hypotheses are tested on the transactional data collected from Taiwan, and empirical results provide broad support for our arguments.


Social capital Cross-selling Financial holding companies Emerging economies