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Economic and social capitals: two keys for improvement of the firm's management vision

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  • Alexi Danchev

Abstract

A new vision for a firm's management is proposed by adjusting the concept of economic capital and the inclusion of social capital for more effective introduction and operating of economic capital systems. The mechanism of influence of social capital on the creation of economic capital at a firm's level is explained by means of the assumption that social capital is a feedback to support the firm's overall performance. The mechanism of interaction between the processes of generating social capital and introducing economic capital system is analysed and an attempt of formulating factors influencing this interaction is presented. The theoretical assumptions are tested by empirical observations in an effort to reveal the practical aspects of this process in a transitional society.

Suggested Citation

  • Alexi Danchev, 2008. "Economic and social capitals: two keys for improvement of the firm's management vision," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 5(5), pages 609-618.
    • Handle: RePEc:ids:ijmede:v:5:y:2008:i:5:p:609-618
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