Social Capital
- Dr. Moria Levy
- Nov 1, 2002
- 2 min read
Social Capital is a concept defined as the sum of actual and potential resources embedded within, available through, and derived from the network of relationships of an individual or social unit. The fundamental assumption underlying the concept of social capital is that networks of relationships create an important source for social activity, drive social enterprises, and provide the foundation for trust and cooperation that enables collective action. The concept of social capital is applied to a wide range of social phenomena, from its role in developing human capital to its impact on the economic performance of companies.
Access to resources within the network can come from both small groups of intimate connections built over time, which lead to a sense of commitment and trust, and through distant connections or via "friend of a friend" relationships as a way to gain access to additional information and special privileges.
The assessment of the role of social capital in creating intellectual capital is conducted on three levels: structural, relational, and cognitive.
Structural - The structural dimension of social capital is attributed to the ability of individuals to create connections with others within the organization. This is achieved through information channels, which reduce the time and investment required for information gathering.
Relational - The development of social capital cannot be based solely on creating connections. It is essential to foster human relationships as well.
Cognitive - Meaningful communication requires the existence of shared contexts among participants in the exchange of opinions, a vital part in the exchange of social opinions and knowledge in integrated processes.
In knowledge management, social capital is utilized, for example, in knowledge communities. This tool is based on the ability of individuals to create connections with others in the organization (structural). It serves as a foundation for creating human relationships (relational) and provides a platform for exchanging opinions and sharing knowledge. It appears that in the future, companies will be evaluated based on their social capital, just as they are today based on their intellectual capital.
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