The Role of Corporate Social Capital in Business Innovation Networks
Year: 2008
Type: article
Abstract: Purpose - This paper looks at role of corporate social capital (CSC) in business innovation. The purpose is to demonstrate how CSC can influence business innovation performance by analysing nature of relationship networks that exist in a typical market place. Design/methodology/approach - We propose a management framework for CSC which incorporates components of centrality, absorptive capacity, human capital, internal capital and financial soundness. This framework is then used to assess a firm's innovation potential. The underlying premise is that a firm's CSC will be critical to its ability to innovate. Originality/value - The paper introduces two original approaches. The formulation of a new management framework for CSC provides capability to measure CSC of firms across whole market sectors and then map CSC attributes to innovation potential. Secondly, innovation model, called the three E's identifies critical central connector and broker roles within three innovation sub-processes of Exploration, Engagement and Exploitation and provides a practical approach for viewing innovation life cycle from critical networking/relationship perspective. Practical implications - An analysis of global information technology services sector is used to illustrate practical application of analytical techniques described. The example illustrates how firms can assess their own or their competitors' innovation potential through assessing their CSC in market place.
Authors: Laurence Lock Lee, James Guthrie
Institutions: University of Bologna, Macquarie University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2171367111