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Shaping and re-shaping social capital in buyer-supplier relationships

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  • Hughes, Mathew
  • Perrons, Robert K.

Abstract

Social capital plays an important role in explaining how value is created from firms' network relationships, but little is understood about how social capital is shaped over time and how it is re-shaped when firms consolidate their network ties. In response, this study explores the evolution of social capital in buyer-supplier relationships through a case study of a company undertaking radical product innovation, and examines the corresponding changes in the firm's network of buyer-supplier relationships. The analysis shows that social capital is built in a decidedly non-linear and non-uniform manner. The study also reveals considerable interaction among the dimensions of social capital throughout the evolution of the firm's network, and emphasizes the importance of the cognitive dimension--a feature receiving little attention thus far. The evidence shows, too, that efforts to strengthen social capital need to increase when network ties are sacrificed to prevent unintended consequences for firms' longer-term value creation.

Suggested Citation

  • Hughes, Mathew & Perrons, Robert K., 2011. "Shaping and re-shaping social capital in buyer-supplier relationships," Journal of Business Research, Elsevier, vol. 64(2), pages 164-171, February.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:2:p:164-171
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    5. Mohammad Alghababsheh & David Gallear, 2021. "Socially Sustainable Supply Chain Management and Suppliers’ Social Performance: The Role of Social Capital," Journal of Business Ethics, Springer, vol. 173(4), pages 855-875, November.
    6. Presutti, Manuela & Boari, Cristina & Fratocchi, Luciano, 2016. "The evolution of inter-organisational social capital with foreign customers: Its direct and interactive effects on SMEs’ foreign performance," Journal of World Business, Elsevier, vol. 51(5), pages 760-773.
    7. Stephanie Scott & Mathew Hughes & Domingo Ribeiro-Soriano, 2022. "Towards a network-based view of effective entrepreneurial ecosystems," Review of Managerial Science, Springer, vol. 16(1), pages 157-187, January.
    8. Steinmo, Marianne & Rasmussen, Einar, 2018. "The interplay of cognitive and relational social capital dimensions in university-industry collaboration: Overcoming the experience barrier," Research Policy, Elsevier, vol. 47(10), pages 1964-1974.
    9. Maina G. & H.M.Bwisa, 2014. "Factors that Affect the Quality of Inputs in Manufacturing Organisations: A Case Study of Nampak Kenya Limited," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(10), pages 288-313, October.
    10. Sihem Ben Mahmoud-Jouini & Florence Charue-Duboc, 2019. "Establishing relationships with distant suppliers to explore discontinuous innovation," Post-Print hal-03052992, HAL.
    11. Horn, Philipp & Scheffler, Paul & Schiele, Holger, 2014. "Internal integration as a pre-condition for external integration in global sourcing: A social capital perspective," International Journal of Production Economics, Elsevier, vol. 153(C), pages 54-65.
    12. Ahmed Abdulqader Hamad & Şule Tuzlukaya & Erdem Kırkbeşoğlu, 2019. "The Effect Of Social Capital On Operational Performance: Research In Banking Sector In Erbil," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 8(1), pages 103-124.
    13. Raziye Ebrahimi & Azam Karimi & Samin Zargar & Faezeh Gholami & Mohammad Kazem Emadzadeh, 2013. "The Effect of Organization Citizenship Behavior on Social Capital in Iran's Cement Factories," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(2), pages 104-109, April.
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