Introducing Social Capital Value Add: Manifesto for New Social Network Structural Management of Corporate Value
AbstractWithin the field of social capital study, concerns have been expressed that deviations from a fundamental understanding that social capital is captured from embedded resources in social networks may reduce the intellectual enterprise to a catch all fad (Lin, Cook, Burt, 1999). This paper is an argument that sometime in 2004, when broadband internet connections became more prevalent than those of less capacity, individuals became empowered as our most intense form of media. Scaled up effects of the Individual as Medium including: • increased information flow, • exertion of influence, • expansion of social credentials and reinforcement of identity and recognition, are consistent with a network theory of social capital. Corporations are exposed to new risks and opportunities due to these scaled up forms of social capital and they require new methods to manage them. Social Capital Value Add is introduced as such a new method, designed to link the pioneering intellectual enterprise of social capital to value based management and the priorities of marketers. A plausible SCVA valuation method is proposed to demonstrate how these links may be articulated in a way that is meaningful for investors and corporate managers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8528.
Date of creation: Mar 2008
Date of revision:
"social capital"; "corporate value"; "Web 2.0"; finance; "corporate valuation"; valuation; "social media"; blog; podcast; RSS; syndication; "memetic brand"; marketing; "social networks"; brand; 2.0; Burt; “structural holes”; “weak ties”; “Nan Lin”; “social capital value add”; Cayley; broadband; “Olav Sorenson”; Ning; Facebook; MySpace; “Marc Andreesen”; “Mark Zuckerburg”; Skype; “inflection point”; “Point of inflection”; Granovetter; goodwill; “Matthew O. Jackson”; “idea habitats”; Heath; Berger; embeddedness; “embedded ties”; Uzzi; “network effects”; trust; reputation; “corporate reputation”; McLuhan; “Understanding Media”; “Marshall McLuhan”; “extensions of man”; “information flow”; “exertion of influence”; Rathergate; “information cascade”; Watts; Gladwell; Friedman; CGM; “consumer generate media”; word-of-mouth; WOM; buzz; “PR 2.0”; “public relations”; PR; CRM; “CRM 2.0”; “customer relationship management”; “social credentials”; recognition; identity; “social recognition”; “Individual as Medium”; I.A.M.; SCVA; “market positioning”; findability; “Jack Trout”; “Al Ries”; “Seth Godin”; humbug; “economic profit”; "economic value add"; “EVA”; “Interbrand”; “Microsoft Yahoo”; Digg; “value based management”; “Dell Hell”; “Kyle Minogue”; “Agent Provocateur”; Wal-Mart; “brand valuation”; “digital footprint”; “social identity”; “social engagement”; “value added earnings”; “branded earnings”; “Chris Anderson”; “The Long Tail”; “reciprocity”; CSR; “corporate social responsibility”; green; sustainability; E-Bay; Amazon; “rate & review”; comments;
Other versions of this item:
- Michael, Cayley, 2008. "Introducing Social Capital Value Add: Manifesto for New Social Network Structural Management of Corporate Value," MPRA Paper, University Library of Munich, Germany 8641, University Library of Munich, Germany.
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
- G3 - Financial Economics - - Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-ACC-2008-05-05 (Accounting & Auditing)
- NEP-ALL-2008-05-05 (All new papers)
- NEP-NET-2008-05-05 (Network Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stephen Leider & Markus M. Möbius & Tanya Rosenblat & Quoc-Anh Do, 2007. "How much is a friend worth?: directed altruism and enforced reciprocity in social networks," Working Papers, Federal Reserve Bank of Boston 07-11, Federal Reserve Bank of Boston.
- Stephen Leider & Markus M. Möbius & Tanya Rosenblat & Quoc-Anh Do, 2009.
"Directed Altruism and Enforced Reciprocity in Social Networks,"
The Quarterly Journal of Economics, MIT Press,
MIT Press, vol. 124(4), pages 1815-1851, November.
- Quoc-Anh Do & Stephen Leider & Markus M. Mobius & Tanya Rosenblat, 2008. "Directed Altruism and Enforced Reciprocity in Social Networks," Working Papers, Singapore Management University, School of Economics 17-2008, Singapore Management University, School of Economics.
- Rosenblat, Tanya & Mobius, Markus, 2009. "Directed Altruism and Enforced Reciprocity in Social Networks," Staff General Research Papers, Iowa State University, Department of Economics 13025, Iowa State University, Department of Economics.
- Mobius, Markus & Do, Quoc-Anh & Leider, Stephen & Rosenblat, Tanya, 2009. "Directed Altruism and Enforced Reciprocity in Social Networks," Scholarly Articles, Harvard University Department of Economics 3054685, Harvard University Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.