Healthy Organizations,Unhealthy Communities?

Nonprofit organizations are an important part of local social networks that connect individuals and organizations and enhance the capacity of communities to solve social problems. However, the commercialization of nonprofit organizations influences their ability to contribute to this social capital. We reason that commercialization of a nonprofit organization may reduce its ability to contribute to social capital if it weakens its social networks; makes its network of relationships less stable; reduces the size, diversity, or involvement of its governing board; or reduces its level of voluntary participation.     

Social capital and nonprofit leaders

The concept of social capital seems to be a very compatible, useful, and important one for nonprofit organizations. Nonprofits must sustain and enhance the original social capital with which they were formed and broaden it into a variety of key areas. Nonprofits and their leaders must foster social capital in order to recruit and develop board members, raise philanthropic support, develop strategic partnerships, engage in advocacy, enhance community relations, and create a shared strategic vision and mission within the organization and its employees. Nonprofit executives have a pivotal role in carrying out these functions, but they do so through relationships and networks with others. These activities are time‐consuming and demanding, and they require planning. This article provides a focused literature analysis on the concept of social capital as it applies to nonprofit management and leadership. The author views the literature with respect to definitions of social capital and the way nonprofits generate and mobilize social capital in order to achieve organizational goals. The author also cites methods for measuring social capital.     

Trust and social capital in the regulation of lending activities

When a bank grants a loan, it takes the risk that the borrower will not honor his debt. To reduce this uncertainty, banks have created instrumental evaluation methods in order to try to evaluate the risk more objectively. An analysis of financial counselors’ practices shows the limits of these methods. To obtain information needed for the financial risk evaluation and to reduce the information asymmetry between bankers and borrowers, financial counselors integrate social networks to establish bonds of trust and to accumulate social capital. The quality of the social bond determines the quality of the gathered information and therefore the quality of the risk evaluation. Bank management is aware of the limits of instrumental methods and the importance of social risk evaluation. To improve their economic efficiency, they modify their work organization and their management practices so as to facilitate the emergence of a bond of trust and the accumulation of social capital by their financial counselors. The analysis of economic actors’ speech and behavior involved in activities of credit shows that behind the claimed altruism nature of the trust relationship exists an economic rationality whose social and temporal horizons of optimization differ from the model of the trade exchange seen in conventional economic theory.     

Evolutionary Process of Social Capital Formation through Community Currency Organizations: The Japanese Case

Community currency systems are said to influence the revival of communities by promoting either local economic growth or social capital accumulation. However, no empirical studies have examined the multiple competing mechanisms for providing social support through transactional networks among participants. The current study connects network structural concepts to theories of social capital, transaction costs, homophily, and resource dependency at multiple levels and evaluates transactional relationships for community rebuilding and local economic development. We examine the evolutionary process of dynamic networks among local residents or organization members with network configurations in one of the largest Japanese community currency systems, “Peanuts.” Using longitudinal network data over 12 years for approximately 1400 actors, we conclude that the evolution and achievement of transactional network dynamics and partner selections differ between the two groups of participants: individual members and organization members. We also provide practical implications for sustaining participants’ transactions and commitment.     

The Impact of the Worker: How Social Capital and Human Capital Influence the Job Tenure of Formerly Undocumented Mexican Immigrants

Using the 1992 Legalized Population Survey, I focus on employment matching processes of formerly undocumented Mexican immigrant workers in the United States. As in earlier studies, I show that employment characteristics are related to the job tenures of immigrant workers. However, my contribution is that I specifically analyze how formerly undocumented Mexican immigrant workers' attributes and social networks influence their job tenures. In general, increases in human capital are associated with shorter job tenure, apparently in an effort to improve employment conditions, while the use of social capital is positively related with job tenure. It appears that acquiring employment is a social process, and those using personal networks find longer lasting jobs. Although prior studies have minimized the role of supply-side characteristics such as employees' skill level and social networks in influencing job tenure, my research confirms the significance of workers and the resources they bring to the labor market.     

Is County Level of Social,Creative, and Human Capital Associated with Winning Humanities Grants in Kansas?

This article examines patterns of Kansas Humanities Council grant distributions to organizations in the state's counties and then assesses social, creative, and human capital explanations for the observed patterns. Substantial numbers of counties have received no grants across a fifteen‐year period. Why is that? The analyses reveal that the presence of statistically significant relationships depends on the intersection of the type of capital in the county and the type of grant program: (1) the receipt of heritage grants is associated with county levels of network social capital, particularly those networks that are “non‐rent‐seeking”; (2) the receipt of “mini” Humanities grants and total grants are associated with levels of creative capital; and (3) the level of human capital makes little difference in grant patterns. These relationships persist under controls for racial/ethnic diversity, income inequality, and dominant political ideology. The implications of the results are assessed in terms of strategies for granting agencies to deal with building community life in low–social capital settings.     

Social capital and public goods

Previous literature suggests positive relationships between social capital, pro-social behavior and subsequent economic development. We analyze the relationship between social networks and trust (two measures of social capital) and self-reported charitable contributions of time and/or money (pro-social behavior) using data collected from two ethnically distinct, low-income neighborhoods. We find that large social networks are positively related to charitable contributions, but that the effects of trust are less robust. We also find that social networks that are more geographically dispersed tend to be larger. Our results indicate that the social capital in a neighborhood is more important than ethnicity, ethnic diversity, or other demographic information in understanding public goods contributions.     

DO CAPITAL ADEQUACY REQUIREMENTS MATTER FOR MONETARY POLICY?

Central bankers and financial supervisors can have conflicting goals. While monetary policymakers work to ensure sufficient lending activities as a foundation for high and stable economic growth, supervisors may limit banks’ lending capacities in order to prevent excessive risk taking. We show that, in theory, central bankers can avoid this potential conflict by adopting an interest rate strategy that takes accounts of capital adequacy requirements. Empirical evidence suggests that while policymakers at the Federal Reserve have adjusted their interest rate to neutralizing the procyclical impact of bank capital requirements, those in Germany and Japan have not. (JEL E52, E58, G21)     

Fostering social capital in an international multi-stakeholder issue network

Scholars have theorized that public relations contributes to societies and communities by bringing attention to pressing public issues and fostering social capital in civil society networks. However, the extant research has studied civil society networks of NGOs, donors, and the media in transitional countries. This study extends the public relations model of civil society in two ways. First, it broadens the scope to an international context. Second, it draws from the multi-stakeholder issue network perspective to conceptualize a civil society network as a space where stakeholders of an issue mix their interests as they collectively address a pressing public issue. The literature on international and multi-stakeholder networks suggest that the international scope and the mixing of interests across sectors may restrict the production of social capital. The results from the social network analysis suggests that the mixing of interests across sectoral and geopolitical boundaries did not restrict the production of social capital. Rather, the patterns of the relationships among those on the core and those on the periphery of the network restricted the production of social capital. Such finding demonstrates how public relations’ functions like relationship building can have profound influences on social capital and civil society networks. The implications for public relations theorizing and research are discussed.     

Network domains in social networking sites: expectations,meanings, and social capital

This paper examines why the use of social networking sites (SNSs) leads to different results in cultivating bridging and bonding social capital for different groups of people. Based on in-depth interviews of 45 university students in Hong Kong, I find that Mainland Chinese students studying in Hong Kong actively use SNSs for seeking practical information about offline matters, and they obtain substantial enacted support from other Mainland students of the same university through SNS use. As a result, they accumulate both bridging and bonding social capital. Local Hong Kong students, however, use SNSs mainly for social information seeking and are only able to accrue limited bridging social capital through SNS use. Drawing on the theory of network domains, I argue that the different offline network structures in which students are located – namely, homogeneous and closed networks versus heterogeneous and open networks – explain this difference. Students with closed offline networks have defined expectations of online ties; they think of their online activities as practical and leading to real changes in their status among peers. Those with open networks have indefinite expectations of their online audience; thus, they interpret online activities differently, thinking of them as recreational, and they are playful in their online behaviour. These different outcomes of online activities consequently lead to diverse results in social capital accrual.     

(Net)Working out: social capital in a private health club

In Bowling Alone Robert Putnam considers the possibility that the growth of private health clubs and the rising rates of membership to such clubs might represent a counter-trend to his thesis on the decline in social capital. In this paper I explore this idea using ethnographic data and social network analysis. I show both that and how networks form in health clubs and I discuss the ways in which these networks constitute social capital for their members. In addition, however, I explore the 'dark side' of this form of social capital. I argue that high integration amongst some members of a fitness class can generate a power differential between those members and other, less integrated members who experience this negatively. Furthermore, with an eye on Burt's (2005 ) important thesis on brokerage and closure, I argue that brokerage between relatively closed clusters of agents can lead to inter-group rivalry and conflict, which, in turn, is experienced negatively by those involved.     

Bridges to learning: international student mobilities,education agencies and inter‐personal networks

International education is a fundamentally transnational project. It relies on the movement of individuals or knowledge across national borders, disturbs the centrality of the nation‐state in educational reproduction, and is facilitated by economic and social networks that act as bridges between countries of origin and education. In this article, I address this latter point through reference to research conducted with South Korean international students in Auckland, New Zealand. In particular, I discuss the emergence of transnational social and economic activities that are facilitating the movement of international students from South Korea to Auckland — activities that might usefully be understood as forming ‘bridges to learning’. These include the activities of education agencies, immigrant entrepreneurs and the interpersonal relationships with which many students engage in the negotiation of their transnational lives. In a broader sense I illustrate how the emerging mobilities of international students cannot be viewed as independent of other phenomena but must be seen as embedded within transnational processes that take place at different geographic and social scales.     

The roles of human capital and social capital in the economic integration of new arrivals from Mainland China to Hong Kong

Although it has been hypothesized in the literature that both human capital and social capital are important for the economic performance of new immigrants, few studies have examined these relationships empirically, especially in understudied populations such as Chinese populations. This study simultaneously examines the roles of human capital and social capital in the economic integration of new arrivals from Mainland China to Hong Kong, using a random sample of immigrants. In the early stage of immigration (less than 6 months after arrival), we find little support for the presumed positive effects of both human capital and social capital on employment status among new arrivals in Hong Kong. Follow-up studies are underway to investigate the dynamic relationship between social capital and economic integration in this group of new arrivals, and whether social capital, especially friendship networks, plays a more important role in the economic integration of new immigrants 1 or 2 years after arrival.     

The role of Landcare group networks in rural Australia: exploring the contribution of social capital

In this paper, the authors report their qualitative research examining the origins, modus operandi and outcomes of two networks. The concept of social capital explains, at least in part, the apparent success of these networks. The two networks attracted substantial funding, created opportunities for participation and shared learning, carried out extensive on-ground works, improved communication structures, adopted more professional management practices and increased the knowledge of members. The key elements of social capital that were important in achieving these outcomes were trust, norms, expectations of reciprocity and linkages. Empowerment acted as a bridge that linked social capital with other factors contributing to network outcomes. The success of these Landcare networks suggests that top-down government stimulus can be a catalyst for bottom-up community development.     

The role of social networks for careers

The aim of this report is to elaborate on the centrality of social networks in the professional context (professional networks) of organizations. Professional networks are a career-relevant resource often called social capital. Social capital from professional networks entail relationships to colleagues or other departments, and can provide relevant and timely information or resources required for advancement on tasks and objectives. We will introduce different types of professional networks such as leadership networks, developmental networks or buy-in networks. Furthermore, the importance of professional networks for employees as well as employers will be explained. For employees, we will also provide information on the relevance of professional networks at different career stages.     

Engagement of the Elderly in Time Banking: The Potential for Social Capital Generation in an Aging Society

Community currency systems attempt to empower the economically marginalized and build social capital. This research explores the role of the elderly in a local voluntary organization. The elderly are potentially very important contributors, yet we know little about their participation in these local exchange networks. Eighty-seven months' worth of transaction data from a “time bank,” which has had a total of 950 members, was examined in social network analyses. Measures of quantitative engagement in the system were constructed. The elderly were found to be as active as other members. Qualitative characteristics of the network were also explored. The organization is rather homogeneous, yet exchanges within it tend to connect diverse actors. Male and female seniors undertransact with themselves and with one another, generating bridging social capital. The evidence presented suggests that the participation of the elderly in local currencies is mutually beneficial.     

Community Connections: Social Capital and Community Success1

This article examines the impact of two types of community social capital—ties between civic organizations formed through shared members and ties between residents formed through socializing in local gathering places—on residents’ subjective appraisals of community success. Community social capital studies tend to focus on the first of these types of ties, networks of civic engagement, while the second, gathering place networks, has received relatively little scholarly attention. Studying both allows me to assess the formal and informal arenas of community sociability, providing a more thorough understanding of social capital and community life. I assess the effects of community‐level social capital networks on the individual‐level experience of residing in the community using survey data on 9,962 residents from 99 small towns in Iowa. This rich data set allows me to avoid two shortcomings common in social capital research: I construct genuine network measures of social capital (rather than infer network structure from community attributes) and conduct multi‐level analyses (rather than rely on disaggregation). My findings indicate both types of social capital are positively and significantly associated with resident ratings of community success, suggesting community networks—in both the formal and informal sectors—have important consequences for small towns and their residents.     

Good health and the bridging of structural holes

Bridges that span structural holes are often explained in terms of the entrepreneurial personalities or rational motivations of brokers, or structural processes that lead to the intersection of social foci. I argue that the existence and use of bridges in interpersonal networks also depends on individuals’ health. Poor health may make it more difficult to withstand the pressures and to execute some of the common tasks associated with bridging (e.g., brokerage). I examine this possibility using egocentric network data on over 2500 older adults drawn from the recent National Social Life, Health, and Aging Project (NSHAP). Multivariate regression analyses show that both cognitive and functional health are significantly positively associated with bridging, net of sociodemographic and life-course controls. The relationship between functional (kinesthetic) health and bridging appears to be partially mediated by network composition, as older adults who have poorer functional health also tend to have networks that are richer in strong ties. Several potential mediation mechanisms are discussed. Cognitive function remains significantly associated with bridging net of network composition, suggesting that the inherent challenges of maintaining bridging positions may be more difficult to cope with for those who have cognitive impairments than for those who have functional impairments such as limited mobility. An alternative explanation is that cognitively impaired individuals have more difficulty recognizing (and thus strategically using) bridges in their networks. Theoretical implications and possibilities for future research are discussed.     

Educational ties,social capital and the translocal (re)production of MBA alumni networks

Research on elite, transnational networks has identified social and cultural capital associated with particular academic credentials as being an important element in network formation. How and why such networks are reproduced after graduation, however, has received less attention. In response, in this article I combine work on social capital and personal networks to explore the reproduction of MBA alumni networks in London's financial services district that were created in leading business schools in the USA and UK. My analysis documents the ways in which business schools and individual alumni combine forms of virtual and corporeal co‐presence to reproduce translocal educational ties. I then argue that the motivation for sustaining these educational ties lies in the potential to convert the social and cultural capital of MBA alumni networks into different types of value ranging from enhanced career progression to increased alumni donations. In doing so, I develop debates on the intersections between social capital, academic credentials and the reproduction of elite networks.     

Social Resources and Occupational Status Attainment: Comparison of Japanese and American Employees' Personal Networks

Abstract: The present study compares Japan and the USA in the ways in which individuals’ personal relationships affect the social standing they achieve. The conceptual framework applied here is similar to that used in established research in Western countries, which examines the effects of both human capital and social capital. The analyses are based on the data collected from a random sample of adult residents in Tokyo, which contains information about their personal networks. This data set is compared with the social network module of the 1985 General Social Survey in the United States. The analyses supported both human capital and social capital theories in the process of status attainment in both countries. Human capital, however, seems to have a stronger influence especially in the USA sample, because certain structural characteristics are associated with one's own educational achievement, which in turn are instrumental in attaining social capital. Unlike the USA, however, the access to social capital in Japan was found primarily through homophily, showing little effect based upon the type of networks they have. The results suggest the difference between the two countries in terms of the function of social resources and the strength of ties that are instrumental in the process of status attainment.