Corporate Social Capital and Strategic Management: A Research Based on Network Structure Perspective

Author: Zhou Xiaohu
Publisher:
Publish Date: 2006-05-01
Features: This book begins by examining the impact of economic globalization and information technology transformation on management. Building upon a review of the evolution of traditional corporate strategy and the development of social capital theory, it proposes that the study of corporate strategy must adapt to the times, shifting research methods from atomistic perspectives to a social capital perspective based on network relationships. It defines corporate social capital as a collection of explicit and implicit resources embedded within the network structure of a firm, which the firm can control and leverage to achieve its goals and objectives. From this, we derive a contingency perspective on social capital, where network relationships and resources can either facilitate or constrain the achievement of corporate goals, depending on various contingency factors. The former is termed "corporate social capital," while the latter is referred to as "corporate social liability."
This book does not confine itself to traditional social network structure methods but takes a management perspective, integrating the concepts of proactive network structures. It organically combines the two aspects of viewing corporate strategy from the perspective of relational networks and viewing corporate networks from the perspective of human resources. Following this approach, the book puts forward some bold hypotheses. For example, it suggests that institutional arrangements centered on residual claim rights should be based on social capital, and that the structure of corporate institutions should shift from the logic of capital to the logic of "social capital." Another example is that the choice of organizational form should align with the stock of social capital. The greater the differences in task diversity and complexity within organizational departments, the higher the demand for social capital. A lack of corporate social capital is often a significant factor in undermining both diversification efficiency and specialization efficiency.
It can be said that businesses have entered an era where entrepreneurs must integrate the development of corporate social capital, particularly the management of network capabilities, into corporate management. Effective organizational structures must be established to ensure the comprehensive, sustainable, and orderly development of corporate social capital.