Abstract
The economic instrumentality of organizations has amplified since the industrial revolution. However, more recently, globalization and disruptions in the business environment have added new dimensions of complexity and uncertainty. This paved way for social capital from community studies to management by viewing it as a resource that can be leveraged by multiple stakeholders for sustainable advantage in organizations. The chapter focuses on understanding the multi-dimensional concept of social capital in organizations by systematically reviewing literature over the past decade (2011–2020). Insights have been presented using the 4P framework: Purpose, Product, Place, and Price of social capital. Taking a perspective of social exchange and social embeddedness, social capital has been shown to positively impact the business ecosystem, communities, minorities, businesses, and employees. Also, during uncertain times, social capital acts as a rainy-day investment that can be used to construct, convert, transfer, or complement needful resources. Findings from the study can be leveraged by both practitioners and academicians to drive organization success.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Abili K (2011) Social capital management in iranian knowledge-based SMEs. The Electron J Knowl Manage 9(3):203–210
Adler PS, Kwon SW (2002) Social capital: prospects for a new concept. Acad Manag Rev 27(1):17–40. https://doi.org/10.5465/AMR.2002.5922314
Al-Omoush KS, Simón-Moya V, Sendra-García J (2020) The impact of social capital and collaborative knowledge creation on e-business proactiveness and organizational agility in responding to the COVID-19 crisis. J Innov Knowl 5(4):279–288. https://doi.org/10.1016/j.jik.2020.10.002
Albin Shaikh H, Purchase S, Brush G (2019) Arabic business relationship characteristics: a social capital perspective. J Bus Ind Mark 34(2):412–425. https://doi.org/10.1108/JBIM-06-2017-0140
Aldecua MJF, Vaillant Y, Lafuente E, Gómez JM (2017) The renaissance of a local wine industry: The relevance of social capital for business innovation in DOQ El Priorat, Catalonia. Wine Econ Policy 6(2):136–145. https://doi.org/10.1016/j.wep.2017.10.001
Alqithami S, Budiarto R, Alzahrani M, Hexmoor H (2020) Towards social capital in a network organization: a conceptual model and an empirical approach. Entropy 22(519):1–19. https://doi.org/10.3390/E22050519
Ansmann L, Hower KI, Wirtz MA, Kowalski C, Ernstmann N, McKee L, Pfaff H (2020) Measuring social capital of healthcare organizations reported by employees for creating positive workplaces—validation of the SOCAPO-E instrument. BMC Health Serv Res 20(1):1–10. https://doi.org/10.1186/s12913-020-05105-9
Barron A, Pereda A, Stacey S (2017) Exploring the performance of government affairs subsidiaries: A study of organisation design and the social capital of European government affairs managers at Toyota Motor Europe and Hyundai Motor Company in Brussels. J World Bus 52(2):184–196. https://doi.org/10.1016/j.jwb.2016.11.006
Bartsch V, Ebers M, Maurer I (2013) Learning in project-based organizations: the role of project teams’ social capital for overcoming barriers to learning. Int J Project Manage 31(2):239–251. https://doi.org/10.1016/j.ijproman.2012.06.009
Bastié F, Cussy P, Le Nadant AL (2016) Network or independent business? entrepreneurs’ human, social and financial capital as determinants of mode of entry. Manag Decis Econ 37(3):167–181. https://doi.org/10.1002/mde.2709
Blount IY, Smith DA, Hill JA (2013) Minority business networks as sources of social capital for minority firms. J Dev Entrep 18(3):1–14
Borden NH (1964) The concept of the marketing mix. J Advert Res 2:7–12
Bourdieu P (1986) The forms of capital. In: Richardson J (ed) Handbook of theory and research for the sociology of education. https://doi.org/10.4324/9780429494338
Briner RB, Denyer D (2012) Systematic review and evidence synthesis as a practice and scholarship tool. In: The oxford handbook of evidence-based management, pp 112–129. https://doi.org/10.1093/oxfordhb/9780199763986.013.0007
Burt RS (2000) The network structure of social capital. Res Organ Behav 22:345–423
Carnevale JB, Hatak I (2020) Employee adjustment and well-being in the era of COVID-19: Implications for human resource management. J Bus Res 116(May):183–187. https://doi.org/10.1016/j.jbusres.2020.05.037
Carroll N, Conboy K (2020) Normalising the “new normal”: changing tech-driven work practices under pandemic time pressure. Int J Inf Manage 55(July):102186. https://doi.org/10.1016/j.ijinfomgt.2020.102186
Chavoshbashi F (2018) The role of social capital in facilitating of knowledge management: evidence from Tehran water & waste water companies. J Econ Manage Perspect 12(2):109–118. http://proxy.lib.sfu.ca/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=134858141&site=ehost-live
Chia J (2011) Communicating, connecting and developing social capital for sustainable organisations and their communities. Austral J Reg Stud 17(3):330–351. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=73881119&site=ehost-live&scope=site
Chollet B, Géraudel M, Mothe C (2014) Generating business referrals for SMEs: the contingent value of CEOs’ social capital. J Small Bus Manage 52(1):79–101. https://doi.org/10.1111/jsbm.12034
Chowdhury M, Prayag G, Orchiston C, Spector S (2019) Postdisaster social capital, adaptive resilience and business performance of tourism organizations in christchurch, New Zealand. J Travel Res 58(7):1209–1226. https://doi.org/10.1177/0047287518794319
Coleman JS (1990) The demand for effective norms. Found Soc Theory 69(2):241–299
Davenport S, Daellenbach U (2011) “Belonging” to a Virtual Research Centre: exploring the influence of social capital formation processes on member identification in a virtual organization. Br J Manag 22(1):54–76. https://doi.org/10.1111/j.1467-8551.2010.00713.x
Deller SC, Conroy T, Markeson B (2018) Social capital, religion and small business activity. J Econ Behav Organ 155:365–381. https://doi.org/10.1016/j.jebo.2018.09.006
Denyer D, Tranfield D (2009) Producing a systematic review. In: Buchanan DA, Bryman A (eds) The Sage handbook of organizational research methods. Sage Publications Ltd., pp 671–689
Di Vincenzo F, Mascia D (2012) Social capital in project-based organizations: Its role, structure, and impact on project performance. Int J Project Manage 30(1):5–14. https://doi.org/10.1016/j.ijproman.2011.03.006
Dill LCJ, Ozer EJ (2019) “The hook-up”: How youth-serving organizations facilitate network-based social capital for urban youth of color. J Commun Psychol 47(7):1614–1628. https://doi.org/10.1002/jcop.22216
Donate MJ, Ruiz-Monterrubio E, Sánchez de Pablo JD, Peña I (2020) Total quality management and high-performance work systems for social capital development: effects on company innovation capabilities. J Intellect Cap 21(1):87–114. https://doi.org/10.1108/JIC-07-2018-0116
Dörhöfer S, Minnig C, Pekruhl U, van Reine PP, homme. (2011) Contrasting the footloose company: social capital, organizational fields and culture. Eur Plan Stud 19(11):1951–1972. https://doi.org/10.1080/09654313.2011.618686
Engleberg IN (1975) Marketing’s four P’s in speech communication. Commun Adm Bull 82–86
Fahmi FZ (2019) Business networks, social capital and the economic performance of creative and cultural industries: The case of Indonesia. Asia Pac Viewp 60(3):370–385. https://doi.org/10.1111/apv.12211
Fedeli UP (2015) ITIL—The 4P’s of service design. Smart Bus Cleveland, August, 18
Fitrimawati, & Jafrinur. (2020) Factors influencing livestock investment decisions in West Sumatra: a social capital in business scheme known as Seduaan. Am J Anim Vet Sci 15(2):129–133. https://doi.org/10.3844/ajavsp.2020.129.133
Fujino Y, Kubo T, Kunimoto M, Tabata H, Tsuchiya T, Kadowaki K, Nakamura T, Oyama I (2013) A cross-sectional study of workplace social capital and blood pressure: a multilevel analysis at Japanese manufacturing companies. BMJ Open 3(2):1–8. https://doi.org/10.1136/bmjopen-2012-002215
Ganguly A, Talukdar A, Chatterjee D (2019) Evaluating the role of social capital, tacit knowledge sharing, knowledge quality and reciprocity in determining innovation capability of an organization. J Knowl Manage 23(6). https://doi.org/10.1108/JKM-03-2018-0190
Gill A, Maung MT, Chowdhury RH (2016) Social capital of non-resident family members and small business financing: Evidence from an Indian state. Int J Manag Financ 12(5):558–582. https://doi.org/10.1108/IJMF-01-2015-0001
Glover TD, Hemingway JL (2005) Locating leisure in the social capital literature. J Leis Res 37(4):387–401
Hoogesteger, J. (2013). Social capital in water user organizations of the Ecuadorian highlands. Human Organization, 72(4), 347–357. https://doi.org/10.17730/humo.72.4.jv2177g624q35253
Jacobs, J. (1965). The death and life of great American cities.
Johnson KF, Belcher TW, Zimmerman B, Franklin J (2020) Interprofessional partnerships involving school counsellors for children with special needs: a broad based systematic review using the PRISMA framework. Support Learn 35(1):43–67. https://doi.org/10.1111/1467-9604.12285
Joo J, Eom MTI, Shin MM (2017) Finding the missing link between corporate social responsibility and firm competitiveness through social capital: a business ecosystem perspective. Sustainability (Switzerland), 9(5). https://doi.org/10.3390/su9050707
Katila S, Wahlbeck Ö (2011) The role of (transnational) social capital in the start-up processes of immigrant businesses: the case of Chinese and Turkish restaurant businesses in Finland. Int Small Bus J 30(3):294–309. https://doi.org/10.1177/0266242610383789
Kling J (2005) The bell-curve drug. Nature 436(August):1064
Kroll A, DeHart-Davis L, Vogel D (2019) Mechanisms of social capital in organizations: how team cognition influences employee commitment and engagement. Am Rev Public Adm 49(7):777–791. https://doi.org/10.1177/0275074019851894
Kwon SW, Adler PS (2014) Social capital: Maturation of a field of research. Acad Manag Rev 39(4):412–422. https://doi.org/10.5465/amr.2014.0210
Laužikas M, Dailydaitė S (2015) Impacts of social capital on transformation from efficiency to innovation-driven business. J Bus Econ Manag 16(1):37–51. https://doi.org/10.3846/16111699.2012.754374
Lee PY, Joseph CSL, Wu ML (2018) The roles of cross-cultural adjustment and social capital formation in the dynamic capabilities development of multiunit organizations. Asia Pac Manag Rev 23(1):20–29. https://doi.org/10.1016/j.apmrv.2017.01.003
Lee W-J (2015) Social capital as a source of business advantages for a woman entrepreneur in the context of small-size business. Asian Soc Sci 11(12):155–167. https://doi.org/10.5539/ass.v11n12p155
Lindstrand A, Melén S, Nordman ER (2011) Turning social capital into business: a study of the internationalization of biotech SMEs. Int Bus Rev 20(2):194–212. https://doi.org/10.1016/j.ibusrev.2011.01.002
Lins KV, Tamayo A (2019) Social capital, trust, and corporate performance: how CSR helped companies during the financial crisis (and why it can keep helping them). J Appl Corp Financ 31(2):59–71
Liu H, Ke W, Wei KK, Lu Y (2016) The effects of social capital on firm substantive and symbolic performance: in the context of E-business. J Glob Inf Manag 24(1):61–85. https://doi.org/10.4018/JGIM.2016010104
Liu L, Wang D, Qin X, Hu Z, Chen R (2020) The impact of social capital on civil society organizations delivering voluntary counseling and testing HIV/AIDS service: a cross-sectional study in China. Biosci Trends 14(3):182–191. https://doi.org/10.5582/bst.2020.03110
Madhavaram S, Hunt SD (2017) Customizing business-to-business (B2B) professional services: the role of intellectual capital and internal social capital. J Bus Res 74:38–46. https://doi.org/10.1016/j.jbusres.2017.01.007
Mcgowan P, Cooper S, Durkin M, O’Kane C (2015) The influence of social and human capital in developing young women as entrepreneurial business leaders. J Small Bus Manage 53(3):645–661. https://doi.org/10.1111/jsbm.12176
Miković R, Petrović D, Mihić M, Obradović V, Todorović M (2020) The integration of social capital and knowledge management—the key challenge for international development and cooperation projects of nonprofit organizations. Int J Project Manage 38(8):515–533. https://doi.org/10.1016/j.ijproman.2020.07.006
Mirsafian H (2018) Effect of social intelligence on OCB and EB, with effect on social capital as a mediating variable, in a sport organization in Iran. Phys Cult Sport, Stud Res 77(1):34–40. https://doi.org/10.2478/pcssr-2018-0003
Moore CB, Payne GT, Autry CW, Griffis SE (2018) Project complexity and bonding social capital in network organizations. Group Org Manag 43(6):936–970. https://doi.org/10.1177/1059601116650556
Nahapiet J, Ghoshal S (1998) Social capital, intellectual capital, and the organizational advantage. Acad Manag Rev 23(2):242–266. https://doi.org/10.2307/259373
Oliveira JF (2013) the influence of the social capital on business performance: an analysis in the context of horizontal business networks. Revista De Administração Mackenzie 14(3):209–235. https://doi.org/10.1590/E-mail
Page MJ, McKenzie JE, Bossuyt PM, Boutron I, Hoffmann TC, Mulrow CD et al (2021) The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. BMJ 372:n71
Paus E (Ed) (2018) Confronting dystopia: The new technological revolution and the future of work. Cornell University Press
Pawson R (2006) Evidence-based policy: a realist perspective. Sage, London
Popay J, Roberts H, Sowden A, Petticrew M, Arai L, Rodgers M, Britten N, Roen K, Duffy S (2006) Guidance on the conduct of narrative synthesis in systematic reviews: a product from the ESRC methods programme. In: ESRC methods programme (Issue 2006). https://doi.org/10.13140/2.1.1018.4643
Prasad VK, Naidu GM, Kinnera Murthy B, Winkel DE, Ehrhardt K (2013) Women entrepreneurs and business venture growth: an examination of the influence of human and social capital resources in an Indian context. J Small Bus Entrep 26(4):341–364. https://doi.org/10.1080/08276331.2013.821758
Prieto-Pastor I, Martín-Pérez V, Martín-Cruz N (2018) Social capital, knowledge integration and learning in project-based organizations: a CEO-based study. J Knowl Manag 22(8):1803–1825. https://doi.org/10.1108/JKM-05-2017-0210
Ramezan M (2016) Examining the impact of organizational culture on social capital in a research based organizations. VINE J Inf Knowl Manage Syst 46(3):411–426. https://doi.org/10.1108/VJIKMS-12-2014-0065
Rouziou M, Dugan R, Rouziès D, Iacobucci D (2018) Brand assets and pay fairness as two routes to enhancing social capital in sales organizations. J Pers Selling Sales Manage 38(2):191–204. https://doi.org/10.1080/08853134.2017.1384699
Scheinbaum AC, Wang SW (2018) Customer centricity and Guanxi prevalence as social capital: a study of international business relationships. J Bus Ind Mark 33(8):1209–1220. https://doi.org/10.1108/JBIM-03-2017-0070
Sias PM, Duncan KL (2020) Not just for customers anymore: organization facebook, employee social capital, and organizational identification. Int J Bus Commun 57(4):431–451. https://doi.org/10.1177/2329488418765930
Skaer M (2005) Understanding the four P’ s of air quality. Air Conditioning, Heat Refrig News 40
Sözbilir F (2018) The interaction between social capital, creativity and efficiency in organizations. Think Skills Creat 27:92–100. https://doi.org/10.1016/j.tsc.2017.12.006
Srirama MV, Iyer PP, Reddy H (2020) Dimensions of social capital and learning culture: a case of an IT organization. Learn Organ 27(4):337–349. https://doi.org/10.1108/TLO-06-2019-0094
Sulaiman WIW, Mahbob MH, Sannusi SN (2015) Social capital and the learning organization. J Asian Pac Commun 25(2):208–219. https://doi.org/10.1075/japc.25.2.04wan
Tacon R (2016) The organizational embeddedness of social capital: a comparative case study of two voluntary organizations. J Econ Issues 50(1):23–42. https://doi.org/10.1080/00213624.2016.1147298
Tacon R (2019) Social capital and social ties in organisations: a case study of two voluntary sports clubs. Int J Sociol Soc Policy 39(9–10):883–898. https://doi.org/10.1108/IJSSP-09-2019-0177
Tchorek G, Brzozowski M, Dziewanowska K, Allen A, Koziol W, Kurtyka M, Targowski F (2020) Social capital and value co-creation: the case of a polish car sharing company. Sustainability (Switzerland), 12(11). https://doi.org/10.3390/su12114713
Van Den Hooff B, De Winter M (2011) Us and them: A social capital perspective on the relationship between the business and IT departments. Eur J Inf Syst 20(3):255–266. https://doi.org/10.1057/ejis.2011.4
Wagner HT, Beimborn D, Weitzel T (2014) How social capital among information technology and business units drives operational alignment and IT business value. J Manag Inf Syst 31(1):241–272. https://doi.org/10.2753/MIS0742-1222310110
Wang C, Steiner B (2020) Can social capital explain business performance in Denmark? Empir Econ 59(4):1699–1722. https://doi.org/10.1007/s00181-019-01731-3
Wang X, Guchait P, Passamehmetoglu A (2020) Why should errors be tolerated ? perceived organizational support, organization-based self-esteem and psychological well-being. Int J Contemp Hosp Manag 32(5):1987–2006. https://doi.org/10.1108/IJCHM-10-2019-0869
Wang Y (2016) Investigating dynamic capabilities of family businesses in China: a social capital perspective. J Small Bus Enterp Dev 23(4):1057–1080. https://doi.org/10.1108/JSBED-12-2015-0175
Webster J, Watson RT (2002) Analyzing the past to prepare for the future: writing a literature review. MIS Quart 26(2). https://doi.org/10.1016/j.freeradbiomed.2005.02.032
Wolfswinkel JF, Furtmueller E, Wilderom CPM (2013) Using grounded theory as a method for rigorously reviewing literature. Eur J Inf Syst 22(1):45–55. https://doi.org/10.1057/ejis.2011.51
Xin L, Tang F, Zhang S, Pan Z (2020) Social capital and sustainable innovation in small businesses: investigating the role of absorptive capacity, marketing capability and organizational learning. Sustainability (Switzerland), 12(9). https://doi.org/10.3390/su12093759
Zarea H (2012) Organizational citizenship behaviors and their relationship to social capital in public organizations of Qom province. Iran J Manage Stud 5(1):79–96. http://offcampus.lib.washington.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=87402082&site=ehost-live
Zarei B, Chaghouee Y, Ghapanchi AH (2014) Investigating the relationship between business process orientation and social capital. Knowl Process Manag 21(1):67–77. https://doi.org/10.1002/kpm.1427
Zhang H, Gupta S, Sun W, Zou Y (2020) How social-media-enabled co-creation between customers and the firm drives business value? the perspective of organizational learning and social capital. Inf Manage 57(3). https://doi.org/10.1016/j.im.2019.103200
Zhang Z, Wang J, Jia M (2021) Multilevel examination of how and when socially responsible human resource management improves the well-being of employees. J Bus Ethics 1. https://doi.org/10.1007/s10551-020-04700-4
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Kaur, P., Sharma, T. (2022). Decoding 4Ps of Social Capital: How Organizations Survive, Thrive Inclusively in Uncertain Times. In: Sharma, T., Sinha Ray, R., Mitra, N. (eds) Responsible Leadership for Sustainability in Uncertain Times. Responsible Leadership and Sustainable Management. Springer, Singapore. https://doi.org/10.1007/978-981-19-4723-0_7
Download citation
DOI: https://doi.org/10.1007/978-981-19-4723-0_7
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-19-4722-3
Online ISBN: 978-981-19-4723-0
eBook Packages: Religion and PhilosophyPhilosophy and Religion (R0)