Social capital’s integrative and facilitative role in organizations: a literature review
This paper explores social capital‘s integrative and facilitative roles in organizations‘ socio-economic life. Based on literature review, it leans on existing literature on social capital dimensions and its two measurement approaches: synthetic based approach and outcome based approach. The main argument of the paper is that social capital is an enabler and integrator of other forms of organizational resources, processes and systems; and that without it; it is difficult to acquire financial, physical, human, intellectual, cultural and technological capital/resources which are important for socio-economic endeavours. Moreover, the paper shows how social capital plays a role in the creation of synergy and elimination of exclusivity, hence improving welfare and managing diversity in organizations. It concludes that reform and transformation in organizations would have impact if done concurrently with social capital institutionalization to promote economic synergy, hierarchical linkage and honest exertion of energy in production functions in all types and sizes of organizations. The paper recommends elevating social capital as a one-stop conceptualized multi-dimensional solution for managing organizations.
Keywords: social capital, social structure, social relations, organizations