Dynamic Capabilities, Social Capital, and Rent Appropriation: Ties that Split Pies
Strategic Management Journal (24), 677-686, 2003
10 Pages Posted: 15 Jul 2003 Last revised: 27 Jul 2012
Date Written: July 26, 2012
Rent appropriation is an emerging area in the strategic management literature. Along these lines, the article explores who reaps the fruits of a dynamic capability. We argue that while social capital is essential for the acquisition, integration, and release of resources at the core of a dynamic capability, actors can also use social capital for personal gain. Thus, social capital may be a key to understanding both rent generation and rent appropriation. Even when causal ambiguity obscures individual contributions, they may use their social capital to establish credible claims on the rent. Specifically, employees who occupy structural holes, span organizational boundaries, or who are highly central may be most able to appropriate rent because their social capital grants credibility to their claims. Rent that is appropriated in this way may be unobservable in performance measures that fail to distinguish normal compensation from rent. We contribute by identifying the specific role of social capital in a dynamic capability and linking social capital to rent appropriation patterns.
Note: This is a description of the paper and not the actual abstract.
Keywords: Dynamic Capabilities, Rent Appropriation, Social Capital
JEL Classification: L2, L0
Suggested Citation: Suggested Citation