Study On Social Capital Of Enterprises

Social capital is the capacity of getting scarce resources and obtaining benefits through which the owners can achieve by social contact. The contact always refers to the continuous social networks based on trust and cooperation among people. The quantity and quality of social capital are decided by the scale and volume of the social networks. Social capital is one of the most important capitals the enterprises own, and it consists the core competitive power that accelerates the development of corporations. Empirical study shows that there exists notable positive correlation between the inner and outer social capital of enterprises and the behavior of the enterprises. Through the approaches of entrepreneurs, staff members, other enterprises, government, media, community and Internet, social capital affects the enterprises greatly. Social capital works through the mechanisms of transaction cost, supervise, knowledge and information, innovation and resource allocation. It is also the ultimate reason that causes the rise, thrive and collapse of family enterprises. The solution to the problem of family enterprises is to turn family trust to social trust. Therefore, in order to reinforce the performance of the enterprises, great emphases should be put on the cultivation, accumulation, investment and application of social capital.