The microlevel concept of social capital has received significant
attention in management and sociological research but has not yet been
empirically associated with the development of organizational
capabilities. The major purpose of this paper is to investigate the
relationship of social capital with marketing and research and
development ( R&D) capability and to explore how the environmental
context moderates the social capital-organizational capability link. It
is suggested that top management's social capital provides a firm with
important information and control benefits that facilitate effective
access to the knowledge and resources necessary for building superior
organizational capabilities. In addition, we identify the role of two
important environmental factors influencing the social
capital-organizational capability link: technological turbulence and
competitive intensity. The strength of the relationship between social
capital and organizational capabilities is proposed to vary depending on
the level of these two environmental characteristics. This study
conceptualizes and operationalizes social capital as a multidimensional
construct reflected by the structural dimension of tie strength, the
relational dimension of trust, and the cognitive dimension of
solidarity. Survey and archival data on 280 firms from various
industries are analyzed using structural equation modeling. Empirical
support for the proposed three-dimensional structure of social capital
is found. Results further indicate that social capital is a significant
antecedent to both marketing and R&D capability, which in turn
significantly affect firm performance. While a positive relationship
between social capital and organizational capabilities is supported in
general, the strength of this relationship depends on the environmental
context the firm is embedded in. The positive effect of social capital
on marketing capability increases in environments with high
technological turbulence and competitive intensity; the opposite holds
for R&D capability. This research contributes to the resource-based
view by introducing social capital as an important microlevel factor
promoting the development of organizational capabilities. By identifying
and evaluating two important environmental contingencies, our study
also decreases some of the ambiguity surrounding the effectiveness of
antecedents to organizational capabilities. The findings further help
practitioners decide under what circumstances investing in top-managers'
social capital provides an effective means for achieving superior
performance through enhanced organizational capabilities. This should
have an important bearing on issues such as management training and
incentives as well as on hiring policies. [ABSTRACT FROM AUTHOR]