Organizational social capital, structure and performance

Abstract

Organization theorists suggest that the social capital within organizations is a potentially powerful resource for improving organizational performance. In addition, organizational structures may strengthen or weaken the effects of social capital, by furnishing greater or fewer opportunities for its growth. This article explores the independent and combined effects of organizational social capital and structure on the performance of over 100 organizations between 2002 and 2005, using panel data. The statistical results suggest that cognitive and relational dimensions of social capital are positively related to performance, but that the structural dimension of social capital is unrelated to service outcomes. Further analysis revealed that organizational structure has complex and contradictory effects on the impact of each dimension of social capital.