Social capital is a sociological concept used in business, economics, organizational behaviour, political science, public health and the social sciences in general to refer to connections within and between social networks. Though there are a variety of related definitions, which have been described as "something of a cure-all" for the problems of modern society, they tend to share the core idea "that social networks have value. Just as a screwdriver (physical capital) or a college education (human capital) can increase productivity (both individual and collective), so do social contacts affect the productivity of individuals and groups".
Evaluating social capital.
Though Bourdieu might agree with Coleman that social capital in the abstract is a neutral resource, his work tends to show how it can be used practically to produce or reproduce inequality, demonstrating for instance how people gain access to powerful positions through the direct and indirect employment of social connections. Robert Putnam has used the concept in a much more positive light: Though he was at first careful to argue that social capital was a neutral term, stating “whether or not [the] shared are praiseworthy is, of course, entirely another matter”,[6] his work on American society tends to frame social capital as a producer of "civic engagement" and also a broad societal measure of communal health.[7] He also transforms social capital from a resource possessed by individuals to an attribute of collectives, focusing on norms and trust as producers of social capital to the exclusion of networks.
Mahyar Arefi identifies consensus building as a direct positive indicator of social capital. (2003) Consensus implies “shared interest” and agreement among various actors and stakeholders to induce collective action. Collective action is thus an indicator of increased social capital.
Edwards and Foley, as editors of a special edition of the American Behavioural Scientist on "Social Capital, Civil Society and Contemporary Democracy," raised two key issues in the study of social capital. First, social capital is not equally available to all, in much the same way that other forms of capital are differently available. Geographic and social isolation limit access to this resource. Second, not all social capital is created equally. The value of a specific source of social capital depends in no small part on the socio-economic position of the source with society. On top of this, Portes has identified four negative consequences of social capital: exclusion of outsiders; excess claims on group members; restrictions on individual freedom; and downward levelling norms. Here it is important to note the distinction between "bonding" and "bridging". There is currently no research which identifies the negative consequences of "bridging" social capital when in balance with its necessary antecedent, "bonding".
Finally, social capital is often linked to the success of democracy and political involvement. Robert Putnam, in his book Bowling Alone makes the argument that social capital is linked to the recent decline in American political participation.
Definitions, forms, and measurement
Social capital lends itself to multiple definitions, interpretations, and uses. David Halpern argues that the popularity of social capital for policymakers is linked to the concept's duality, coming because "it has a hard nosed economic feel while restating the importance of the social." For researchers, the term is popular partly due to the broad range of outcomes it can explain;[9] the multiplicity of uses for social capital has led to a multiplicity of definitions. Social capital has been used at various times to explain superior managerial performance , improved performance of functionally diverse groups , the value derived from strategic alliances and enhanced supply chain relations .
Early attempts to define social capital focused on the degree to which social capital as a resource should be used for public good or for the benefit of individuals. Putnam suggested that social capital would facilitate co-operation and mutually supportive relations in communities and nations and would therefore be a valuable means of combating many of the social disorders inherent in modern societies, for example crime. In contrast to those focussing on the individual benefit derived from the web of social relationships and ties individual actors find themselves in, attribute social capital to increased personal access to information and skill sets and enhanced power . According to this view, individuals could use social capital to further their own career prospects, rather than for the good of organisations.
In The Forms of Capital[ Pierre Bourdieu distinguishes between three forms of capital: economic capital, cultural capital and social capital. He defines social capital as "the aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalised relationships of mutual acquaintance and recognition".[ His treatment of the concept is instrumental, focusing on the advantages to possessors of social capital and the “deliberate construction of sociability for the purpose of creating this resource”.
James Coleman defined social capital functionally as “a variety of entities with two elements in common: they all consist of some aspect of social structure, and they facilitate certain actions of actors...within the structure” – that is, social capital is anything that facilitates individual or collective action, generated by networks of relationships, reciprocity, trust, and social norms. In Coleman’s conception, social capital is a neutral resource that facilitates any manner of action, but whether society is better off as a result depends entirely on the individual uses to which it is put.
According to Robert Putnam, social capital "refers to the collective value of all 'social networks' and the inclinations that arise from these networks to do things for each other".[citation needed] According to Putnam and his followers, social capital is a key component to building and maintaining democracy. Putnam says that social capital is declining in the United States. This is seen in lower levels of trust in government and lower levels of civic participation. Putnam also says that television and urban sprawl have had a significant role in making America far less 'connected'. Putnam believes that social capital can be measured by the amount of trust and "reciprocity" in a community or between individuals.
Nan Lin's concept of social capital has a more individualistic approach: "Investment in social relations with expected returns in the marketplace". This may subsume the concepts of some others such as Bourdieu, Flap and Eriksson.
In "Social Capital and Development: The Coming Agenda", Francis Fukuyama points out that there isn't an agreed definition of social capital, so he explains it as “shared norms or values that promote social cooperation, instantiated in actual social relationships” (Fukuyama, 27), and uses this definition throughout this paper. He argues that social capital is a necessary precondition for successful development, but a strong rule of law and basic political institutions are necessary to build social capital. He believes that a strong social capital is necessary for a strong democracy and strong economic growth. Familism is a major problem of trust because it fosters a two-tiered moral system, in which a person must favor the opinions of family members. Fukuyama believes that bridging social capital (a term coined by Putnam in "Bowling Alone"), is essential for a strong social capital because a broader radius of trust will enable connections across borders of all sorts and serve as a basis for organizations. Although he points out many problems and possible solutions in his paper, he does admit that there is still much to be done to build a strong social capital.
The Social Capital Foundation (TSCF) suggested that social capital should not be mixed up with its manifestations. While for example social capital is often understood as the networks that a person possesses and that he/she may use in a social integration purpose, it is more the disposition to create, maintain and develop such networks that constitutes real social capital. Similarly, civic engagement is a manifestation of social capital but not social capital itself. In this definition, social capital is a collective mental disposition close to the spirit of community.
Nahapiet and Ghoshal in their examination of the role of social capital in the creation of intellectual capital, suggest that social capital should be considered in terms of three clusters: structural, relational and cognitive. Carlos García Timón describes that the structural dimensions of social capital relate to an individual ability to make weak and strong ties to others within a system. This dimension focuses on the advantages derived from the configuration of an actor's, either individual or collective, network. The differences between weak and strong ties are explained by Granovetter (1973).[ The relational dimension focuses on the character of the connection between individuals. This is best characterized through trust of others and their cooperation and the identification an individual has within a network. Hazleton and Kennan[ added a third angle, that of communication. Communication is needed to access and use social capital through exchanging information, identifying problems and solutions, and managing conflict. According to Boisot[ and Boland and Tensaki,[ meaningful communication requires at least some sharing context between the parties to such exchange. The cognitive dimension focusses on the shared meaning and understanding that individuals or groups have with one another.
A network-based conception can also be used for characterizing the social capital of collectivities (such as organizations or business clusters).
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