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Leadership and Internal Relational Capital of Enterprises

Author

Listed:
  • Rafal Drewniak
  • Urszula Slupska
  • Iwona Posadzinska

Abstract

Purpose: The paper aims to identify the actions that foster the development of positive relationships between employees and the company and help build internal relational capital. The authors also attempted to describe the patterns of formation of intra-organizational relations by identifying the actions that contribute the most to the development of internal relational capital. Design/Methodology/Approach: Two studies conducted in 2018-2020 focused on the importance of relational competencies in creating company value and the role of leadership. The first study concentrated on the managers (N=10), whereas the second one focused on the analyzed companies' employees (N=185). The obtained information was used to perform structural analysis, based on structural indicators expressed as percentage values. Factor analysis was also carried out as part of the data analysis to determine the relationships between factors. The principal component analysis was used. Findings: The results indicate that in the process of creation and development of intellectual capital in an enterprise, the role of a leader involves mainly the establishment of values desired for the company's success, creation of a corporate culture that helps to accomplish goals, and assistance in reaching the targets by employees, as well as support for workers and their activity. The analyzed enterprises are engaged in developing proper internal relations and apply different methods to build relations between the company and the employees. Practical Implications: The results indicate the directions for building internal relations. Identification of the actions that demonstrate a greater impact on the development of positive relationships between employees and the company and those with a lesser impact. Originality/Value: Concentration on effective relational management and creation of relational capital are the key elements of modern leadership. The development of positive relationships between employees and the company contributes to the company's relational capital, which considerably affects an enterprise's growth and competitive position.

Suggested Citation

  • Rafal Drewniak & Urszula Slupska & Iwona Posadzinska, 2020. "Leadership and Internal Relational Capital of Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 373-388.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:special1:p:373-388
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    References listed on IDEAS

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    1. Roberta Capello & Alessandra Faggian, 2005. "Collective Learning and Relational Capital in Local Innovation Processes," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 75-87.
    2. Rafal Drewniak & Zbigniew Drewniak & Iwona Posadzinska, 2020. "Leadership Styles and Employee Expectations," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 398-411.
    3. Daniel Palmer, 2009. "Business Leadership: Three Levels of Ethical Analysis," Journal of Business Ethics, Springer, vol. 88(3), pages 525-536, September.
    4. Jose Domingo García-Merino & Lidia García-Zambrano & Arturo Rodriguez-Castellanos, 2014. "Impact of Relational Capital on Business Value," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 13(01), pages 1-8.
    5. Joanna Paliszkiewicz & Jerzy Goluchowski & Alex Koohang, 2015. "Leadership, Trust and Knowledge Management in Relation To Organizational Performance: Advancing a Framework," Managing Intellectual Capital and Innovation for Sustainable and Inclusive Society: Managing Intellectual Capital and Innovation; Proceedings of the MakeLearn and TIIM Joint International Conference 2,, ToKnowPress.
    6. Wang, Chao-Hung, 2014. "How relational capital mediates the effect of corporate reputation on competitive advantage: Evidence from Taiwan high-tech industry," Technological Forecasting and Social Change, Elsevier, vol. 82(C), pages 167-176.
    7. Urszula Slupska & Zbigniew Drewniak & Robert Karaszewski, 2020. "Improving the Internal Relations Versus Shaping the External Relations of the Enterprise," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 572-585.
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    Cited by:

    1. Urszula Słupska & Zbigniew Drewniak & Rafał Drewniak & Robert Karaszewski, 2022. "Building Relations between the Company and Employees: The Moderating Role of Leadership," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    2. Rafal Drewniak & Zbigniew Drewniak & Iwona Posadzinska, 2020. "Leadership Styles and Employee Expectations," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 398-411.
    3. Urszula Slupska & Zbigniew Drewniak & Robert Karaszewski, 2020. "Improving the Internal Relations Versus Shaping the External Relations of the Enterprise," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 572-585.
    4. Dorota Balcerzyk, 2021. "The Role of a Leader in Contemporary Organizations," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 226-240.
    5. Mariusz Wozniakowski & Agnieszka Piotrowska-Piatek & Wiktor Krasa, 2023. "Developing the Driver-Employer Relationship in Terms of Internal Public Relations Activities," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 779-792.

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    More about this item

    Keywords

    Relational capital; relational competencies; leadership.;
    All these keywords.

    JEL classification:

    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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