Three levels of organizational social capital and their connection to performance

Purpose: Exploring the mechanisms through which social capital (SC) operates in organizations is highly important for both researchers and practitioners. As a theoretical concept, the role and functions of SC in organizations are framed in various ways but not clearly enough. Practitioners would like to understand how relationship intensifies performance; the purpose of this paper is to better understand the mechanisms through which SC influences performance in organizations. Design/methodology/approach: A conceptual framework for different levels of SC in organizations has been developed and presented, as well as propositions regarding the suggested impact of each level on performance have been stated. Findings: Drawing on a variety of literatures, it is argued that there are three levels of SC in organizations – personal, intra-organizational, and external; each level has unique features and benefits, and also, each level holds different risks. It is suggested that every SC level strengthens other components of performance. Originality/value: Organizations strive to improve their performance and to create a better working atmosphere for their employees; nurturing SC properly helps in achieving these goals. This paper promotes understanding of the benefits and risks of SC, how to avoid these risks, and how to improve personal and collective performance and organizational outcomes.