Social Capital in the Context of Relational Capital
6 Pages Posted: 31 Dec 2014
Date Written: December 30, 2014
The purpose of this study was to establish the relationship between relational capital and organizational performance in Automobile Sector of India. To help in the study, the study objectives were formulated together with a conceptual framework that linked social capital and its components to organization performance. Organization performance was measured using attributes like profitability and future viability. A cross sectional, descriptive and analytical research design was adopted using a representative sample of 10 top automobile companies and 100 respondents from these organizations. Data was collected using a self-administered questionnaire to the automobile sector under study. The data was analyzed using SPSS (version 16.0), then manipulated using cross tabulations, Pearson’s correlation coefficient and the regression to determine the relationship between the independent variables impact on the dependent variables. social capital improves, organization performance increases. The results further revealed that social capital is significantly related to organization performance. Therefore, managers should intensify initiatives to encourage greater understanding and acceptance on social capital elements, employ a viable social capital composition that includes building strong social relational ties with the community and competitors, and pay attention to customers and employees in order to identify their needs and provide optimal value for them. This is likely to increase organization performance.
Keywords: Relational Capital, Social Capital, Organisational Performance.
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