No business is an island: The network concept of business strategy

The purpose of this article is to explore the contributions that could be made to the conceptual frame of reference for business strategy management by one of the research programmes which focuses on the organization–environment interface, and to which a network approach has been applied. We start by examining some of the assumptions underlying the current “strategy management doctrine”. The network model of the organization–environment interface is then reviewed and three central issues of the strategy management doctrine are discussed from the viewpoint of the network model: (1) organizational boundaries, (2) determinants of organizational effectiveness, and (3) the process of managing business strategy.The conclusion reached is that in all three areas changes are required in the assumptions of the business strategy model. Our arguments stem from a basic proposition about the situations described by the network model: continuous interaction with other parties constituting the context with which the organization interacts endows the organization with meaning and a role. When this proposition applies, any attempt to manage the behaviour of the organization will require a shift in focus away from the way the organization allocates and structures its internal resources and towards the way it relates its own activities and resources to those of the other parties constituting its context. Such a shift in focus entails a somewhat different view of the meaning of organizational effectiveness: what does it depend on and how can it be managed?     

Social capital,internationalization and absorptive capacity: The electronics and ICT cluster of the Basque Country

This article analyses the case of a successful young high technology cluster in an old industrialized European region, the electronics and information and communications technology cluster in the Basque Country (Spain). Based on the findings of this case study, we propose that social capital and internationalization play an important role in increasing the absorptive capacity of clusters (thus, the capacity of a cluster to absorb, diffuse and creatively exploit extra-cluster knowledge), and hence, in sustaining their growth and dynamism. Absorptive capacity depends on the capacity of firms to establish intra- and extra-cluster knowledge linkages. We put forward in this article the fact that social capital fosters intra-cluster knowledge linkages, and cluster's internationalization the extra-cluster knowledge ones. Therefore, social capital and internationalization are key elements to increase the absorptive capacity of a cluster and its growth. Given the accumulative, path- and place-dependent nature of social capital and knowledge creation and accumulation, we employed a largely qualitative and historical analysis, combining statistical and qualitative cluster data and interviews with key actors.     

Social Context,Management, and Organizational Performance: When human capital and social capital serve as substitutes

Do internal (administrative human capital) and external (social capital) resources work to reinforce the effects of each other? Work from multiple disciplines has approached this question, and we advance this literature with a theory of social and administrative resources as potential substitutes for each other in the production of public education outcomes. We argue that social capital benefits some groups more than others and that it interacts with management to improve performance. We therefore expect the benefits associated with social capital to be non-uniform across community groups. Using education as our area of study, we find that social capital offers the most direct and unconditional benefits to white students but that management can use human capital resources to compensate disadvantaged students who may lack support and resources outside of the classroom. We do not find support for the expectation that social capital and human administrative capital reinforce the benefits of each other, but we find evidence that the two resource types are substitutable. This implies that management may substitute human capital resources when social capital is low to benefit public program performance.     

Sustainable development and intangibles: building sustainable intellectual capital

Sustainable intellectual capital is a promising starting‐point for the incorporation of environmental aspects into the general management system of a firm. This paper examines how sustainable intellectual capital helps to overcome the shortcomings of conventional approaches to environmental management systems. It does this by extending the concept of sustainability from relational capital to the three pillars of intellectual capital: human, structural and relational intellectual capital. A multiple case study was carried out with Spanish firms characterized by their high level of environmental leadership. The findings indicated that sustainable human intellectual capital, environmental training, information and awareness sessions help in the accumulation and utilization of knowledge. As for sustainable structural intellectual capital, the environmental technology portfolio is improved and new environmental departments are created. Regarding sustainable relational intellectual capital, the firm–environment link is very important. In the primary and secondary sectors suppliers become involved to a greater extent in the environmental management process, whereas in the service sector it is the customer who becomes more involved. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Social capital and well-being in the Italian provinces

Recent years witnessed a growing interest in the concept of well-being and quality of life, as alternative to the Gross Domestic Product (GDP). The determinants of well-being, especially at the regional and provincial levels, is understudied in a macro perspective, as opposed to a micro perspective (individuals, survey data) that has been the dominant approach until recently. In this paper, we estimate an empirical model for the Italian NUTS-3 provinces to evaluate the role of social capital on well-being by using aggregated (provincial) data. Our findings suggest that social capital, social security programs, income, and grant-making activities by Bank Foundations, even though not uniformly distributed across Italy, positively affect well-being, thus contributing to explain the persistent dualism that characterizes the Italian economy.     

Evaluating human capital: an exploratory study of management practice

The article explores the development of systems of human capital evaluation in a number of large UK firms. Human capital is a much used term in business literature, and it is widely recognised that firms need to develop mechanisms to determine the value of their employee base. An extensive human capital literature has developed in which the authors propose elaborate systems for measuring a firm's human assets. This article does not seek to offer yet another human capital model. Rather, the aim is to examine the management practices through which human capital evaluation is undertaken. The article is based on an exploratory study of such practices in 11 major firms in the UK. The findings are highlighted as follows. First, we note the preference for internal over external (static accountancy‐based) reporting. Secondly, we highlight the diverse nature of human capital evaluation systems that exist across UK business. Thirdly, we explore the relationship between practices of evaluation and the role and position of the HR function within the firm. Finally, in conclusion, we address the implications of the human capital perspective for practitioners, arguing that there is no single formula that can be applied to its evaluation. We go on to suggest that the importance of the human capital concept and its measurement may lie in its ability to re‐frame perceptions of the relationship between the contribution of employees and the competitive performance of the business.     

Managerial efficiency and human capital: an application to English association football

The problem of hidden action in organizations makes direct measurement of managerial performance problematic. But in English association football hidden action is unlikely to be as serious a problem because the owner observes the manager's performance each time the team plays. In this situation production frontier analysis may be used to measure managerial performance and analyze the variation in performance across managers in terms of manager human capital. Having some kind of prior affiliation with the club and achieving international recognition as a player are especially important. Overall, initial experience matters more than specific and general managerial experience. Copyright © 2002 John Wiley & Sons, Ltd.     

Social capital in the workplace: Evidence on its formation and consequences

The existence of social ties between co-workers affect many aspects of firm and worker behavior, such as how workers respond to a given set of incentives, the optimal compensation structures for workers at different tiers of the firm hierarchy, and the optimal organizational design for the firm. This paper presents evidence on the social capital in one particular firm, as embodied in the friendship ties among its workers. We describe the structure of the friendship network as a whole and present evidence on the determinants of social ties. Finally, we review evidence from a field experiment we conducted in the firm to highlight one particular mechanism through which social capital significantly affects worker performance.     

构建“首都区”的意义和价值

在对京津现有规划思路重新认识的基础上,具体勾勒出以京津为中心,以河北为自然延伸,以晋陕蒙为生态屏障与能源支撑的"首都区"建设区域,指出其是区域内实现可持续发展的关键.在此基础上提出要基于战略高度和区域视野来规划发展;同时,"首都区"建设必须与体制改革,与主体功能区建设结合起来.     

Knowledge capital,CEO power,and firm value: Evidence from the IT industry

Disruptive innovation dramatically changes the demand of a product market in the information technology (IT) industry. In response to the impact of disruptive innovation, IT firms that may be eliminated from the competitive race actively develop innovative products and adjust their operating strategies to strengthen their survivability in the fiercely competitive market. Thus, this study explores the factors that affect firm value in the IT industry under the impact of disruptive innovation. The empirical results reveal that knowledge capital and CEO power play crucial roles in explaining firm value. IT firms with powerful CEOs and increased knowledge capital have high firm values. The effects of knowledge capital and CEO power on firm value are especially significant for founder and duality CEO firms. Furthermore, the influence of CEO power is more prominent in periods of financial crisis.     

Social capital and human resource management in international joint ventures in Vietnam: a perspective from a transitional economy

This study highlights the importance of social capital in international joint ventures (IJVs), and examines human resource practices as a factor shaping such social capital. Comprehensive measures of social capital are developed and tested, which extend prior work on ‘bonding’ and ‘bridging’ social capital. We also link social capital with its anticipated antecedents and consequences. The study's findings are based on data collected from 164 IJVs located in Vietnam. IJV performance was predicted by training and by the level of trust and cooperation between foreign and local personnel. Training (including acquisition of management skills, technology, and cross-cultural understanding) also was predictive of the measures of social capital. A key practical implication arising from this study is that the return on investment from training of joint venture personnel can stem not only from the transfer of technical and management skills needed for developing competitive advantage, but also from the positive impact on social capital, which further contributes to venture success. The establishment of written objectives and plans for the venture, as well as the IJV's level of control regarding its own HR functions also was found to be related to some components of social capital. The findings of this study reinforce the call to build on the contributions of local personnel in joint ventures, and in Vietnam in particular.     

Industrial relations changes in the Maldives: critical events and actors

This paper analyses recent industrial relations (IR) and political changes in the Maldives. Critical incidents were compiled from interview and document data and analysed using a quasi‐grounded theory approach. The analysis shows that, precipitated by the political events of September 2003, profound democratic and IR changes took place, including the emergence of new IR actors and institutions. However, the outcomes of these changes proved short‐lived as old undemocratic practices were reasserted. The paper highlights the reasons why democratic and IR changes occurred as they did in the Maldives and why they reversed.     

货币资本路在何方?

我国民营企业的创立,都是以货币资本与人力资本的相统一为特征的,也就是说,出资人同时也是经营者.     

Networks and leadership development: Building linkages for capacity acquisition and capital accrual

Social networks can aid the leadership development process through facilitating access to important developmental assignments and the acquisition of capabilities to handle associated challenges. Although much of the traditional focus of leadership development has been on building intrapersonal capabilities, functioning effectively as a leader necessitates the development of interpersonal capabilities associated with dyadic ties and relational capabilities associated with patterns of ties within networks. Such capabilities allow aspiring managers to accrue not only human capital, but social and system capital as well. Aspiring managers can tap task, career, and friendship/support networks to aid developmental and career success. Structure factors, including strategic choices, network characteristics, and the technological interface moderate the ability of managers to convert potential network contacts into significant leadership development and capital accrual. Personal factors also influence leadership development prospects. Overall, there are many ways in which network concepts associated with dyadic and relational levels of analysis can facilitate addressing the challenges that are key to leadership development.     

Social capital and career outcomes: a study of Chinese employees

This study examines the impacts of social capital on employees’ career outcomes in the Chinese context. Access to information and access to resources are hypothesized as the mediators in the relationships. A new measure of individual social capital is developed and used as the key predictor of the outcome variables. Data were collected from a survey administered to 184 employees in a state-owned enterprise. The results of regression analysis showed that individual social capital enhanced both career satisfaction and career achievement among Chinese employees. Further, access to information and access to resources were found to mediate the above relationships. The theoretical and practical implications are discussed.     

Global talent management and inpatriate social capital building: a status inconsistency perspective

Distinct to expatriate managers at the subsidiary-level, inpatriate managers' influence at the headquarter (HQ)-level is controlled by the extent to which an inpatriate manager is able to ‘win’ status from HQ personnel. The primary goal of the paper is to conceptualize how organizational support, in the form of global talent management (GTM) practices, can alleviate inpatriates' difficulties in building social capital at HQ. Building social capital at HQ is vital for inpatriates to attain status in order to build the inter-unit social capital that enables them to pursue their boundary-spanning role across HQs and subsidiaries. Status inconsistency theory is put forward to recognize the personal, professional and structural incongruence of events and activities at HQ carried out with respect to inpatriates. We argue that inpatriate managers become empowered at HQ only when social capital is accumulated whereby social capital is driven by an acknowledgment of inpatriates as a legitimate staffing option. The relationship between GTM practices and social capital building needs to be managed properly by inpatriates themselves as well as by the organization. A future research agenda helping to build social capital of inpatriates through GTM infrastructure is discussed and propositions are offered throughout.     

Taxing capital is a good idea: The role of idiosyncratic risk in an OLG model

We investigate an overlapping generations (OLG) model in which agents who live for two periods receive idiosyncratic productivity shocks when they are old. We show that, around zero tax equilibria, we can always construct a combination of a small capital tax and a lump-sum transfer that are Pareto-improving. As Dávila et al. (Econometrica (2012)) show, a capital reduction in one period raises the welfare level of agents who are old in that period, but lowers that of the young agents, because it reduces their wages. We show that the government can compensate for these wage losses by additionally taxing the old agents, such that their welfare gains remain positive. Our result is unchanged when earnings are uncertain at young age.     

Growth and social capital: an evolutionary model

In this paper, we analyze the role of cooperation between firms through a model of growth and social capital. In a growth model à la Solow we incorporate the set of resources that a relational network has at its disposals, as a distinct production factor, and thus examine its dissemination through evolutionary type processes in firm interactions. Dynamic analysis of the model demonstrates that cooperation is able to increase the productivity of factors, fostering a higher rate of growth in the long term. The most significant result is that scarcity of social capital can produce a general collapse of the economic system in areas in which long term growth is usually sustained by the learning by doing and spillover of knowledge phenomena. This conclusion leads to reconsider the role of local development economic policies that should concentrate on activities that promote repeated interaction between firms proven to be cooperative or that encourage the formation of technological consortia.