Adding Value to Others: The Positive Externalities of Social Capital

In this paper, we ask whether social structure can help explain why some employees are better able than others to add value to their peers, as rated by their peers. Our theoretical contribution concerns the distinct influences of two orders of social capital: first-order and second-order. First-orde...

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Bibliographic Details
Main Authors: Galunic, Charles, ERTUG, Gokhan, Gargiulo, Martin
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2006
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/1279
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Institution: Singapore Management University
Language: English
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Summary:In this paper, we ask whether social structure can help explain why some employees are better able than others to add value to their peers, as rated by their peers. Our theoretical contribution concerns the distinct influences of two orders of social capital: first-order and second-order. First-order social capital is conceptualized as the social structure of the focal actor. Second-order social is conceptualized as the social structure of the actor's boss, a central figure in the life of most managers. Using network sparseness to capture social capital, we find that not only first-order but also second-order social capital has significant effects on peer-to-peer value-added.