Building and maintaining strong business relationships is highly valued by companies and can be achieved through proper use of Social Capital. Due to technological developments and the growth of social media and online networking sites, Social Capital is not only accumulated offline anymore.
Moreover, the Internet established a new way of accruing Social Capital online by making use of new communication channels and thereby, enables managers to strengthen their ties within the business world. Not only business-to-business relationships but also business-to-customers relationships can be improved through Social Capital online. Not only big, well-established firms but also smaller firms and start-ups can benefit significantly from this less-costly way of building business relationships. In the following, it will be discussed how Social Capital can be accrued in the digital era and to what extend this can be beneficial to entrepreneurial firms.
Table of Contents
I. Introduction
II. Social Capital Accumulation from a Managerial Perspective
1. Literature Review
2. Practical Implications
3. Suggestions for Future Research
III. Conclusion
Research Objectives and Core Themes
This paper examines how the emergence of digital technologies and social media platforms has transformed the traditional accumulation of social capital. The primary research focus is to understand how managers and entrepreneurial firms can leverage online networking to build and maintain vital business relationships, while identifying the opportunities, risks, and gaps in current academic literature.
- The transition from traditional offline to digital social capital accumulation.
- The differentiation between bridging and bonding social capital in a business context.
- Practical strategies for utilizing social networking sites like Facebook, Twitter, and LinkedIn.
- The role of internal corporate networking platforms, such as IBM's Beehive.
- Identification of future research needs regarding network security and potential negative impacts of online social capital.
Excerpt from the Book
Social Capital and Networking Sites
Since Social Capital can not only be obtained offline anymore, social media and social networking sites gain importance in this field of study. To name some potential sources of Social Capital, Facebook is currently used by approximately 1.94 billion active users monthly (Facebook, 2017). Twitter reached out to 328 million people in the first quarter of 2017; LinkedIn reached a number of 467 million users in the third quarter of 2016 (Statista, 2017a; Statista 2017b).
Most research regarding the influence of social networking sites on Social Capital is from a socio-economic perspective. Ellison, Steinfield and Lampe (2010) assessed different strategies of Facebook users that were used to connect through the website. They found that “only social information-seeking behaviors contribute to perceptions of social capital; connection strategies that focus on strangers or close friends do not” (Ellison, Steinfield & Lampe, 2010: 873). Applying this to our previous concepts, it shows again that Social Capital is more likely accumulated through bridging and weak tie connections online than through bonding and strong tie connections. A further study focusses on the relationship between Facebook and Social Capital and demonstrate how Social Capital can be formed through weak ties (Ellison, Vitak, Gray & Lampe, 2011). Valenzuela, Park and Kee (2009), however, found in their study that for young adults the correlation of Social Capital and the use of Facebook is rather small. Nonetheless, the impact of Facebook use on Social Capital is existing and their results were coherent with existing studies (Valenzuela, Park & Kee, 2009).
Summary of Chapters
I. Introduction: Introduces the concept of social capital in management and sets the stage for how digital communication channels enable new relationship-building strategies for businesses.
II. Social Capital Accumulation from a Managerial Perspective: Analyzes the theoretical foundations of social capital, compares bridging and bonding strategies, and evaluates the effectiveness of various social media platforms and internal corporate networks.
1. Literature Review: Provides a comprehensive overview of how social capital is defined in academia, emphasizing the shift from traditional to online network building and the importance of network diversity.
2. Practical Implications: Discusses how entrepreneurs and companies can actively apply networking sites to enhance customer relations and employee engagement, highlighting successful examples like IBM's Beehive.
3. Suggestions for Future Research: Outlines critical areas requiring further investigation, including the potential negative effects of online social capital, the role of network security, and how company size influences social capital accrual.
III. Conclusion: Summarizes the key findings, reiterating that while the digital era offers significant advantages for business relationship management, it also presents underexplored risks that warrant future scholarly attention.
Keywords
Social Capital, Digital Age, Networking Sites, Bridging, Bonding, Weak Ties, Strong Ties, Entrepreneurial Firms, Social Media, Online Communication, Business Relationships, Network Diversity, Corporate Networking, Customer Relations, Digital Strategy
Frequently Asked Questions
What is the fundamental focus of this paper?
The paper explores how the concept of social capital has evolved in the digital age, specifically focusing on how managers and companies can utilize online platforms to build and sustain beneficial business relationships.
What are the primary thematic areas explored in the text?
The text covers the shift from offline to online social capital, the distinction between bridging and bonding, the strategic use of social media for businesses, and the implications for both startups and established firms.
What is the core research goal?
The goal is to analyze how the transition to digital interaction influences social capital and to determine the potential benefits and risks associated with these new methods of accrual.
Which methodology is applied in this research?
The work utilizes a literature-based research approach, synthesizing existing academic frameworks and recent empirical studies to provide a comprehensive managerial perspective on digital social capital.
What topics are addressed in the main part of the paper?
The main sections discuss traditional versus modern definitions of social capital, the utility of weak versus strong ties in digital environments, and practical application strategies using public and internal corporate networks.
How would you characterize this paper through keywords?
Key terms include social capital, digital age, weak ties, networking sites, and entrepreneurial firms, reflecting the intersection of management science and digital communication.
How does the author define the role of "bridging" in the digital era?
Bridging is described as an essential strategy where managers use weak ties to overcome structural holes and gain access to a more diverse range of information and resources online.
What specific concerns does the author raise regarding digital social capital?
The author highlights the potential risks of hacking, identity theft, and the danger that controversial online content could negatively impact a company's social capital and customer relationships.
- Quote paper
- Elena Thole (Author), 2017, Social Capital in the Digital Age. How to Accrue Social Capital in the Digital Era?, Munich, GRIN Verlag, https://www.grin.com/document/912951
