SOCIAL CAPITAL AN ECLECTIC LITERATURE SURVEY This report was commissioned by the Tata Sustainability Group The following contributed to the writing of this paper: Amir Ullah Khan Amitabh Kundu Anand Mathew Bobby John Kaushiki Sanyal Rajesh Chakraborty Netheena Mathews Sundara Vardhan Venkatanaryana Motkuri 2018 Aequitas Consulting Pvt. Ltd 401A, Hemkunt Chambers 89 Nehru Place, New Delhi 110019
[email protected] SUMMARY SOCIAL CAPITAL – AN ECLECTIC LITERATURE SURVEY Social capital emerges from an intangible but real network of human relationships, and is not contained within, or fully expressed, at an individual level. With the emergence of the internet and social media, almost all business leaders and modern managers bank on the power of networks to create value and add competitive advantages to their businesses. Besides social relations, intra- and inter-organisational relationships are a valuable resource for organisational success. While the term social capital has been in use in literature for around a century now, its exact definition, the role it plays in creating appropriable competitive advantage for firms and business groups, its measurement, and the means to accumulate and harness it are yet to be comprehensively understood. This paper is the first in a three- part series that seeks to address these issues, specifically in the context of one of the oldest, and highly revered business conglomerates in the world – the Tata group. The current analysis is restricted only to presenting a broad survey of the literature covering the many definitions and measurement approaches applied to social capital, with an attempt at the end to narrow the concept down towards producing a practical definition, and measurement methodology for the Tata group.