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The Importance of Social Capital in International Business Essay

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Below is an essay on "The Importance of Social Capital in International Business" from Anti Essays, your source for research papers, essays, and term paper examples.

Social Capital has become a critical aspect for organisations in today’s rapidly changing and globalized world in order to carry out the business successfully. The World Bank defines Social capital as “The institutions, relationships, and norms that shape the quality and quantity of a society's social interactions. Social capital is not just the sum of the institutions which underpin a society; it is the glue that holds them together”. The perception of social capital has been a subject of scrutiny and a growing number of scholars suggest that social capital is an important aspect in developing an organisations diverse workforce.
According Taylor, S (2007) the social capital can be further classified based on the characteristics into structural, relational and cognitive. According to Taylor, S (2007) these three social capital characteristics can definitely add values to the organisations operational success.
Structural social capital can be recognized as an individual’s networking relationship with other individuals, which would help him to leverage that relationship in getting specific information or assistance in achieving the organisations business goals. The number of ties this individual has and the important people he/she knows can be an important factor (Taylor, S., 2007, p. 338).
The Relational social capital depends on people’s personal relationship that has developed through interactions over time with each other which builds and endorses greater trust and associability among each other. This helps the employee’s readiness to share information among each other regardless of their cultural difference or geographic   locations (Taylor, S., 2007, p. 338).
The cognitive social capital can be described as having a shared meaning and understanding through relationships over time among individuals or group. The cognitive social capital improves the coordination among individuals and also helps in developing shared goals and objectives among them. (Taylor,...

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"The Importance of Social Capital in International Business". Anti Essays. 10 Dec. 2018

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The Importance of Social Capital in International Business. Anti Essays. Retrieved December 10, 2018, from the World Wide Web: http://snehaedu.com/free-essays/The-Importance-Of-Social-Capital-In-356953.html