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It’s more complicated than we think: The implications of social capital on innovation

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  • Sheng Wang

    (University of Nevada, Las Vegas)

  • Rebecca Guidice

    (University of North Carolina, Wilmington)

  • Yuanyuan Zhou

    (University of Illinois, Springfield)

  • Zhong-Ming Wang

    (Zhejiang University)

Abstract

Researchers often focus on the positive implications of social capital, not recognizing that it may put the organizations at a competitive disadvantage if it limits access to other resources or discourages action. Based on findings from a large sample of Chinese manufacturers, the current study provides a more complete picture of the extent to which and under what conditions internal social capital fosters innovation and when it breaks down to limit performance. Results suggest a curvilinear relationship between internal social capital and innovation. Results also indicate that this curvilinear effect is strengthened by the extent to which employees share in the vision expressed by leaders. A moderation effect was also found with the extent to which there is alignment between the organization’s strategy and its human resource management (HRM). Innovation was greatest when both social capital and alignment were at moderate levels; a finding that suggests the HR department’s involvement in strategic planning, while necessary, may undermine the strategic flexibility needed for innovation when alignment is too great.

Suggested Citation

  • Sheng Wang & Rebecca Guidice & Yuanyuan Zhou & Zhong-Ming Wang, 2017. "It’s more complicated than we think: The implications of social capital on innovation," Asia Pacific Journal of Management, Springer, vol. 34(3), pages 649-674, September.
    • Handle: RePEc:kap:asiapa:v:34:y:2017:i:3:d:10.1007_s10490-016-9491-y
    DOI: 10.1007/s10490-016-9491-y
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    1. Yuliani Suseno & Ashly H. Pinnington, 2018. "Building social capital and human capital for internationalization: The role of network ties and knowledge resources," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 1081-1106, December.
    2. Sun, Helin & Cappa, Francesco & Zhu, Jia & Peruffo, Enzo, 2023. "The effect of CEO social capital, CEO duality and state-ownership on corporate innovation," International Review of Financial Analysis, Elsevier, vol. 87(C).
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    4. Maksim Belitski & Sameeksha Desai, 2021. "Female ownership, firm age and firm growth: a study of South Asian firms," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 825-855, September.
    5. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 2021. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 32-77, February.
    6. Gerke, Anna & Luzzini, Davide & Mena, Carlos, 2021. "Innovation configurations in sport clusters: The role of interorganizational citizenship and social capital," Journal of Business Research, Elsevier, vol. 133(C), pages 409-419.
    7. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 0. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-46.
    8. Colovic, Ana & Williams, Christopher, 2020. "Group culture, gender diversity and organizational innovativeness: Evidence from Serbia," Journal of Business Research, Elsevier, vol. 110(C), pages 282-291.

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