Social capital, strategic relatedness and the formation of intraorganizational linkages

Wenpin Tsai

713 citations0/0 files storedStrategic Management Journal

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Innovation and Knowledge Management Social Capital and Networks Business Strategy and Innovation

Abstract

This paper investigates the evolutionary dynamics of network formation by analyzing how organizational units create new interunit linkages for resource exchange. Using sociometric techniques and event history analysis, this study predicts the rate at which new interunit linkages are created between a newly formed unit and all the existing units in a large multinational organization. Two important constructs: social capital, derived from the literature on social structure and network formation, and strategic relatedness, derived from research on diversification and the resource-based view of the firm, are used to explain the rate of new linkage creation. Results show that the interaction between social capital and strategic relatedness significantly affects the formation of intraorganizational linkages. Copyright © 2000 John Wiley & Sons, Ltd.

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References

1990Absorptive Capacity: A New Perspective on Learning and Innovation 1985Economic Action and Social Structure: The Problem of Embeddedness 1990Foundations of social theory 1995Bowling Alone: America's Declining Social Capital 1998Social Capital, Intellectual Capital, and the Organizational Advantage 1992Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology 1997The Tacit Dimension 1998Social Capital: Its Origins and Applications in Modern Sociology

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