Abstract
Human and social capital have elicited notable attention of research scholars in various disciplines such as sociology, economics, finance, political science, behavioral science, human resource management, and organizational theory in their quest for answers to a broadening range of questions in their own fields. The primary reason for this attention is an increasing awareness of the fact that human resources and their interrelationships are crucial for the performance of any entity, be it a firm, nation, economy, or the global economy. In their search, scholars tried to gain an objective understanding of these concepts and compare these soft forms of capital to the traditional notion of capital as a factor of production in economics. In economics, capital is a purposive action, an investment of resources with expected returns in the market place. Economic capital is a resource that is processed twice. In the first process, resources are produced or altered as an investment and in the second process, the produced or altered resources are deployed in the market place to earn profit (Lin, 2002). Drawing from this definition of economic capital, human capital would be, in simple terms, an investment in individual knowledge and skills with expected returns in the market place. Similarly, social capital would be an investment in social relations with expected returns in the market place.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Adler, P. S. and S.-W. Kwon (2002). “Social capital: Prospects for a new concept.” Academy of Management Review27(1): 17–40.
Ansari, S., K. Munir, and T. Gregg (2012). “Impact at the ‘bottom of the pyramid’: the role of social capital in capability development and community empowerment.” Journal of Management Studies49(4): 813–842.
Barney, J. (1991). “Firm resources and sustained competitive advantage.” Journal of Management17(1): 99–120.
Barney, J. B. and P. M. Wright (1997). “On becoming a strategic partner: The role of human resources in gaining competitive advantage.”
Becker, G. S. (1964). Human capital theory, New York: Columbia University Press.
Becker, G. S. (1993). “Nobel lecture: The economic way of looking at behavior.” Journal of political economy: 385–409.
Becker, G. S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education, University of Chicago Press.
Bontis, N. and A. Serenko (2009). “A causal model of human capital antecedents and consequents in the financial services industry.” Journal of Intellectual Capital10(1): 53–69.
Burt, R. S. (2000). “The network structure of social capital.” Research in Organizational Behavior22: 345–423.
Çalişkan, E. N. (2010). “The impact of strategic human resource management on organizational performance.” Journal of Naval Science and Engineering6(2): 100–116.
Campbell, B. A., R. Coff, and D. Kryscynski (2012). “Rethinking sustained competitive advantage from human capital.” Academy of Management Review37(3): 376–395.
Campbell, B. A., B. M. Saxton, and P. M. Banerjee (2013). “Resetting the shot clock the effect of comobility on human capital.” Journal of Management: 0149206313516679.
Cappelli, P. and H. Singh (1992). “Integrating strategic human resources and strategic management.” Research Frontiers in Industrial Relations and Human Resources: 165–192.
Coff, R. W. (1999). “When competitive advantage doesn’t lead to performance: The resource-based view and stakeholder bargaining power.” Organization Science10(2): 119–133.
Coleman, J. S. (1988). “Social capital in the creation of human capital.” American Journal of Sociology 94: 95–120.
Coleman, J. S. (1990). Foundations of social theory, Harvard University Press.
Combs, J., Y. Liu, A. Hall, and D. Ketchen (2006). “How much do high—performance work practices matter? A meta—analysis of their effects on organizational performance.” Personnel Psychology59(3): 501–528.
Conrad, D. (2008). “Defining social capital.” Social Capital1: 53–59.
Crook, T. R., S. Y. Todd, J. G. Combs, and D. J. Woehr (2011). “Does human capital matter? A meta-analysis of the relationship between human capital and firm performance.” Journal of Applied Psychology96(3): 443.
Davidsson, P. and B. Honig (2003). “The role of social and human capital among nascent entrepreneurs.” Journal of Business Venturing18(3): 301–331.
Eisenhardt, K. M. and J. A. Martin (2000). “Dynamic capabilities: what are they?” Strategic Management Journal21(10–11): 1105–1121.
Caravan, T. N., M. Morley, and P. Gunnigle (2001). “Human capital accumulation: the role of human resource development.” Journal of European Industrial Training25(2/3/4): 48–68.
Gennaioli, N., R. L. Porta, F. L. de Silanes, and A. Shleifer (2013). “Human capital and regional development.” The Quarterly Journal of Economics128(1): 105–164.
Glaeser, E. L. (2001). “The formation of social capital.” Canadian Journal of Policy Research2(1): 34–40.
Glaeser, E. L., D. Laibson, and B. Sacerdote (2002). “An economic approach to social capital*.” The Economic Journal112(483): F437–F458.
Granovetter, M. (1973). “The strength of weak ties.” American Journal of Sociology78(6): 1.
Grigoriou, K. and F. T. Rothaermel (2013). “Structural Microfoundations of Innovation The Role of Relational Stars.” Journal of Management: 0149206313513612.
Helfat, C. E., et al. (2009). Dynamic capabilities: Understanding strategic change in organizations, John Wiley & Sons.
Hitt, M. A., L. Biermant, K. Shimizu, and R. Kochhar (2001). “Direct and moderating effects of human capital on strategy and performance in professional service firms: A resource-based perspective.” Academy of Management Journal44(1): 13–28.
Huselid, M. A. (1995). “The impact of human resource management practices on turnover, productivity, and corporate financial performance.” Academy of Management Journal38(3): 635–672.
Inglehart, R. and A. de Estudios Sociales (2000). World values surveys and European values surveys, 1981–1984, 1990–1993, and 1995–1997, Inter-university Consortium for for Political and Social Research.
Judge, T. A., D. M. Cable, J. W. Boudreau, and R. D. Bretz Jr. (1995). “An empirical investigation of the predictors of executive career success.” Personnel Psychology48(3): 485–519.
Kozlowski, S. W. and D. R. Ilgen (2006). “Enhancing the effectiveness of work groups and teams.” Psychological Science in the Public Interest7(3): 77–124.
Kozlowski, S. W. and K. J. Klein (2000). “A multilevel approach to theory and research in organizations: Contextual, temporal, and emergent processes.”
Krishna, A. (2013). Active social capital: Tracing the roots of development and democracy, Columbia University Press.
Leana, C. R. and H.J. Van Buren (1999). “Organizational social capital and employment practices.” Academy of Management Review24(3): 538–555.
Lee, R. (2009). “Social capital and business and management: Setting a research agenda.” International Journal of Management Reviews11(3): 247–273.
Lin, N. (2002). Social capital: A theory of social structure and action, Cambridge University Press.
Liu, Y., J. G. Combs, D. J. Ketchen Jr., and R. D. Ireland (2007). “The value of human resource management for organizational performance.” Business Horizons50(6): 503–511.
Mackey, A., J. C. Molloy, and S. S. Morris (2013). “Scarce Human Capital in Managerial Labor Markets.” Journal of Management: 0149206313517265.
Mahoney, J. T. and J. R. Pandian (1992). “The resource-based view within the conversation of strategic management.” Strategic Management Journal13(5): 363–380.
Nafukhoa, F. M., N. Hairston, and K. Brooks (2004). “Human capital theory: implications for human resource development.” Human Resource Development International7(4): 545–551.
Nahapiet, J. and S. Ghoshal (1998). “Social capital, intellectual capital, and the organizational advantage.” Academy of Management Review23(2): 242–266.
Nonaka, I. (1991). “The knowledge-creating company.” Harvard Business Review69(6): 96–104.
Pfeffer, J. (1995). Competitive advantage through people: Unleashing the power of the work force, Harvard Business Press.
Pil, F. K. and C. Leana (2009). “Applying organizational research to public school reform: The effects of teacher human and social capital on student performance.” Academy of Management Journal52(6): 1101–1124.
Ployhart, R. E. and T. P. Moliterno (2011). “Emergence of the human capital resource: A multilevel model.” Academy of Management Review36(1): 127–150.
Ployhart, R. E., A. J. Nyberg, G. Reilly, and M. A. Maltarich (2013). “Human capital is dead; long live human capital resources!” Journal of Management: 0149206313512152.
Ployhart, R. E., J. A. Weekley, and K. Baughman (2006). “The structure and function of human capital emergence: A multilevel examination of the attraction-selection-attrition model.” Academy of Management Journal49(4): 661–677.
Prahalad, C. and G. Hamel (1990). “The core competence of the corporation.” Boston (MA): 235–256.
Putnam, R. D. (1995). “Bowling alone: America’s declining social capital.” Journal of Democracy6(1): 65–78.
Roberts, K. and Lacey, J. (2008). “What is the relationship between human and social capital.” Rural Society18(2): 103–116.
Schultz, T. W. (1961). “Investment in human capital.” The American Economic Review. 1–17.
Smith, A. (1976). An inquiry into the nature and causes of the wealth of nations: Vol. log 2, Liberty Classics.
Svendsen, G. L. (2006). “Studying social capital in situ: A qualitative approach.” Theory and Society35(1): 39–70.
Takeuchi, R., D. P. Lepak, H. Wang, and K. Takeuchi (2007). “An empirical examination of the mechanisms mediating between high-performance work systems and the performance of Japanese organizations.” Journal of Applied Psychology92(4): 1069.
Tymon, W. G. and S. A. Stumpf (2003). “Social capital in the success of knowledge workers.” Career Development International8(1): 12–20.
Tzabbar, D. and R. R. Kehoe (2013). “Can opportunity emerge from disarray? An examination of exploration and exploitation following star scientist turnover.” Journal of Management: 0149206313513613.
Van Bastelaer, T. (1999). Does Social Capital Facilitate the Poor’s Access to Credit?: A Review of the Microeconomic Literature, World Bank, Social Development Family, Environmentally and Socially Sustainable Development Network.
Wollebaek, D. and P. Selle (2002). “Does participation in voluntary associations contribute to social capital? The impact of intensity, scope, and type.” Nonprofit and Voluntary Sector Quarterly31(1): 32–61.
Woolcock, M. (1998). “Social capital and economic development: Toward a theoretical synthesis and policy framework.” Theory and Society27(2): 151–208.
Woolcock, M. and D. Narayan (2000). “Social capital: Implications for development theory, research, and policy.” The World Bank Research Observer15(2): 225–249.
Wright, P. M., R. Coff, and T. P. Moliterno (2013). “Strategic Human Capital Crossing the Great Divide.” Journal of Management: 0149206313518437.
Wright, P. M., B. B. Dunford, and S. A. Scott (2001). “Human resources and the resource based view of the firm.” Journal of Management27(6): 701–721.
Wright, P. M., B. Mccormick, W S. Sherman, and G. C. McMahan (1999). “The role of human resource practices in petro-chemical refinery performance.” International Journal of Human Resource Management10(4): 551–571.
Wright, P. M. and G. C. McMahan (2011). “Exploring human capital: putting ‘human’back into strategic human resource management.” Human Resource Management Journal21(2): 93–104.
Zahra, S. A. (2010). “Harvesting family firms’ organizational social capital: A relational perspective.” Journal of Management Studies47(2): 345–366.
Zula, K. J. and T. J. Chermack (2007). “Integrative literature review: Human capital planning: A review of literature and implications for human resource development.” Human Resource Development Review6(3): 245–262.
Editor information
Copyright information
© 2014 Meir Russ
About this chapter
Cite this chapter
Sharma, D. (2014). Bridging Human Capital and Social Capital Theories. In: Russ, M. (eds) Value Creation, Reporting, and Signaling for Human Capital and Human Assets. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137472069_5
Download citation
DOI: https://doi.org/10.1057/9781137472069_5
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-50107-6
Online ISBN: 978-1-137-47206-9
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)