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Social Capital for Strategic Sensitivity in Global Business

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  • Hanna Lehtimäki
  • Katja Karintaus

Abstract

The purpose of this case study is to increase our understanding of building strategic sensitivity and the ways by which internal social relationships contribute to it. Applying insights from social capital and social networks theories, the case explores the role of social relations in implementing a strategic initiative. The case study was conducted in close collaboration with the case firm to ensure the applicability of the research findings in an empirical setting. Strategic sensitivity is embedded in social interaction. Exploring both the structural and relational dimensions of social capital allows for understanding the role of social relationships in constraining and enhancing strategic sensitivity. The structural dimension gives information on the efficiency and vulnerability of the social relations, while, the relational dimension shows the motivation for interacting and sharing information and knowledge. Identification of the company as a social entity with humane values manifested in communication is important to the members of the globally operating organization. The case provides empirical evidence on the functioning of social capital and gives an insight to the importance of understanding social connections between the members of the organization.

Suggested Citation

  • Hanna Lehtimäki & Katja Karintaus, 2012. "Social Capital for Strategic Sensitivity in Global Business," South Asian Journal of Business and Management Cases, , vol. 1(2), pages 91-104, December.
    • Handle: RePEc:sae:sajbmc:v:1:y:2012:i:2:p:91-104
    DOI: 10.1177/2277977912459443
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    References listed on IDEAS

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    1. Ray Reagans & Ezra W. Zuckerman, 2001. "Networks, Diversity, and Productivity: The Social Capital of Corporate R&D Teams," Organization Science, INFORMS, vol. 12(4), pages 502-517, August.
    2. Herminia Ibarra & Martin Kilduff & Wenpin Tsai, 2005. "Zooming In and Out: Connecting Individuals and Collectivities at the Frontiers of Organizational Network Research," Organization Science, INFORMS, vol. 16(4), pages 359-371, August.
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    Cited by:

    1. Hanna Lehtimäki & Katja Karintaus, 2013. "The Social Embeddedness of Strategy Implementation," South Asian Journal of Business and Management Cases, , vol. 2(2), pages 229-239, December.

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