Assessing Social Capital For Organisational Performance: Initial Exploratory Insights From Ghana
Date
2010
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Organizations And Markets In Emerging Economies
Abstract
Social Capital is a concept that describes good quality social relations that can lead to mutual benefit. The fundamental proposition of social capital theory is that networks of relationships grant
access to resources, especially information benefits not available to non-members of the network. This
study assessed the functions of social capital within Ghanaian organizations, described the patterns
and determinants of social capital use within organizations, and explored how social capital contributes to firm performance using a sample frame of firms listed in the Ghana Club 100. A questionnaire
field survey supplemented by personal interviews was chosen as the most appropriate design for this
investigation. Employees were sampled across the organizational hierarchy based on their responsibilities, positions, and type of relationship held with others within the organization. Data was also
collected on demographic characteristics and organizational dynamics. The results showed that
social capital is critical to knowledge sharing in the Ghanaian organization; that it helps to get things
done and helps in the attainment of organizational objectives. The findings also suggested that three
determinate variables of social capital: reciprocity, trust, and institutional ties, have the most significant
positive relationship with organizational performance. Given that, the study recommends that
firms take a proactive approach towards promoting, building, and maintaining viable social networks
within their structures to derive maximum benefit from it.
Description
Research Article
Keywords
social capital, organisational performance, Ghana