Social Capital Knowledge

Social Capital Knowledge

Daniel L. Davenport (University of Kentucky Chandler Medical Center, USA) and Clyde W. Hosapple (University of Kentucky, USA)
Copyright: © 2006 |Pages: 9
DOI: 10.4018/978-1-59140-573-3.ch106
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Abstract

Organizations have capabilities for creating and sharing knowledge (intellectual capital) that give them their distinctive advantage over other institutional arrangements, such as markets (Ghoshal & Nahapiet, 1998). But, what is the basis of a firm’s knowledge development capabilities? At least in part, the answer is that these capabilities stem from the social capital that an organization possesses as a result of bringing people together for extended periods of time, creating interdependence through specialization and integration, forcing interaction, and providing boundaries and directions. Following the resource-based theory of the firm (Conner & Prahalad, 1996), enterprises that cultivate particular forms of social capital are likely to realize competitive advantages (Ghoshal & Nahapiet, 1998).

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