Showing papers on "Relational capital published in 2006"

The Importance of Resources in the Internationalization of Professional Service Firms: The Good, the Bad, and The Ugly

Abstract: To further knowledge about the bases of internationalization, we examined the importance of two firm resources: human capital, and relational capital derived from relations with corporate clients a...

Negotiating Relationally: The Dynamics of the Relational Self in Negotiations

Abstract: In this article we advance a distinctly relational view of negotiation. We delineate the conditions through which relational self-construals (RSC) become accessible in negotiations and the conditions that inhibit their use, and we illustrate mechanisms through which RSC affects negotiation processes and outcomes. We introduce four relational dynamics--arelational trading, relational satisficing, relational distancing, and relational integrating--and discuss their consequences for the accumulation of economic and relational capital in negotiation.

The Influence of Intellectual Capital on New Product Development Performance – The Manufacturing Companies of Taiwan as an Example

Abstract: The purpose of this study was to investigate the influence of intellectual capital of Taiwanese manufacturing companies upon their new product development performance. This study showed that three types of intellectual capital – human capital, structural capital, and relational capital – had a significantly positive relationship with new product development performance. Moreover, the results also indicated that the higher the growth rate of an industry, the stronger were the positive relationships between three types of intellectual capital and new product development performance. Besides, relational capital was the greatest among these three types of intellectual capital in Taiwanese manufacturing companies, human capital was the next, and structural capital was the least. This shows two points; first, Taiwanese manufacturing companies emphasized the interactive ‘relations’ with their suppliers, clients, and partners; second, it was imperative for Taiwanese manufacturing enterprises to develop t...

Relational quality and innovative performance in R&D based science and technology firms

Abstract: The knowledge-based view of the firm implies that the innovative performance of R&D based organisations is strongly influenced by the quality of their relational capital. However, the quality of the employment relationship has been underplayed in this perspective. A model is developed that tests the quality of three dimensions of the employment relationship – the psychological contract, affective commitment and knowledge-sharing behaviours – and their consequences for innovative performance amongst 429 R&D employees in six different science and technology based firms. Analysis found that affective commitment plays an important role in mediating psychological contract fulfilment on knowledge-sharing behaviour, which in turn is strongly related to innovative performance. More specifically, fulfilment of the job design dimension of the psychological contract has an independent positive association with innovative performance, whereas fulfilment of the performance pay dimension is negatively associated.

Linking shared organisational context and relational capital through unlearning: An initial empirical investigation in SMEs

Abstract: Purpose – The environment provided by an organisation to facilitate learning and create knowledge has been defined as the shared organisational context. The value to an organisation of knowledge created by the shared organisational context is called intellectual capital, of which one key component is relational capital. The purpose of this paper is to focus on the aspect of learning concerned with challenging the basic beliefs or processes that companies take for granted, which is embodied in the concept of unlearning.Design/methodology/approach – This paper reviews the literature to identify relevant measures and present a structural equation model, which is validated through an empirical investigation of 139 small‐ to medium‐sized enterprises (SMEs) in the Spanish optometry sector.Findings – The results indicate that companies need to support unlearning as a prior step, otherwise unlearning does not have any significant effect on the creation of relational capital.Research limitations/implications – Few...

The sell side-observations on intellectual capital indicators

Abstract: Purpose – The objective of this paper is to examine the use of indicators of intellectual capital (IC) by financial analysts employed by brokerage firms, so‐called “sell‐side analysts”, and based on the findings draw conclusions on the perceived usefulness of different categories of indicators.Design/methodology/approach – The basis for the paper is a content analysis of 250 sell‐side financial analyst reports written on a respective number of randomly selected S&P 500 companies. The study describes the use of IC information as leading indicators of future performance and identifies the contextual factors related to the use of such indicators.Findings – The results reveal frequent use of IC indicators in analyst reports. Statistical analysis of the results indicates industry to be a contextual factor that is significantly related to the number of indicators used. Moreover, a majority of the IC indicators refer to relational capital, whereas indicators on human and structural capital are less frequent.Orig...

Equity Versus Non-Equity International Strategic Alliances: The Role of Host Country Governance Management

Abstract: A substantial literature has evolved focusing on the ownership structure of international strategic alliances (ISAs). Most of the relevant studies are theoretical in nature and concentrate on the conceptual factors that influence the choice between equity and non-equity structures. A smaller number of studies provide some empirical evidence on the importance of some of the conceptual factors. The theoretical literature highlights the potential influence of relational capital and transaction costs as determinants of ISA structure; however, there is little empirical evidence on the relative importance of these potential determinants. Moreover, there is only limited and indirect evidence bearing upon the impact of host country governance attributes on ISA ownership structure. In this study, we provide statistical evidence on the importance of potential determinants of governance mode choice for a sample of ISAs involving Danish firms. Our study documents how the determinants of governance mode choice vary in importance depending upon the "quality" of the governance infrastructure of the host country.

Being trusted in a social network: trust as relational capital

Abstract: Trust can be viewed as an instrument both for an agent selecting the right partners in order to achieve its own goals (the point of view of the trustier), and for an agent of being selected from other potential partners (the point of view of the trustee) in order to establish with them a cooperation/ collaboration and to take advantage from the accumulated trust. In our previous works we focused our main attention on the first point of view. In this paper we will analyze trust as the agents' relational capital. Starting from the classical dependence network (in which needs, goals, abilities and resources are distributed among the agents) with potential partners, we introduce the analysis of what it means for an agent to be trusted and how this condition could be strategically used from it for achieving its own goals, that is, why it represents a form of power. Although there is a big interest in literature about ‘social capital' and its powerful effects on the wellbeing of both societies and individuals, often it is not clear enough what is it the object under analysis. Individual trust capital (relational capital) and collective trust capital not only should be disentangled, but their relations are quite complicated and even conflicting. To overcome this gap, we propose a study that first attempts to understand what trust is as capital of individuals. In which sense “trust” is a capital. How this capital is built, managed and saved. In particular, how this capital is the result of the others' beliefs and goals. Then we aim to analytically study the cognitive dynamics of this object.

Industrial districts: something more than a neighbourhood

Abstract: The expansion of globalization has led to the relocation of many industrial activities. In particular, this process has affected industrial districts in the traditional industries. However, different districts vary in their capacity to retain activities. The robustness of industrial districts and, in consequence, their capacity to retain core activities at home and thus avoid painful relocations can be analysed by means of the relational capital developed at the district level. The relational structure within the district affects and determines the capacity of innovation of the district firms. This paper analyses the extent to which innovation depends on the amount of relational capital developed at the district level. We have addressed this proposition using internal human mobility, shared vision and trusting co-operation as indicators of the amount and quality of relational capital. In order to support theoretical propositions we have conducted empirical research comparing different industrial districts...

Organizational vs. personal social capital in scientists' performance: A multi-level network study of elite French cancer researchers (1996-1998)

Abstract: The difference between individual social capital and organizational (or corporate) social capital has been an important topic of research in sociology during the past decade. The existence of this difference between two forms of social capital evokes an old question in a new manner: what matters most in explaining individual actors' performance? Is it personal social or collective resources provided by the organization to which the individuals belong and in which they work? In this paper we provide a preliminary answer to this question based on a multi-level network study of the top 'elites' in French cancer research during 1996-1998. By multi-level we mean that we reconstituted both the inter-organizational networks of exchange between most French laboratories carrying out cancer research in 1999; simultaneously, we reconstituted key social networks of the top individual elites in cancer research in France during that same year. Given our 'linked design' (i.e., knowing to which laboratory each researcher belongs), we were able to disentangle the effects of structural properties of the laboratory from the effects of characteristics of the individual researcher (including structural ones) on the latter's performance. Performance was measured by a score based on the impact factor of the journal in which each researcher published. Our results show that organizational social capital matters more, and more consistently, than individual relational capital in explaining variations in performance by French top cancer researchers.

The effect of innovation on intellectual capital: an empirical evaluation in the biotechnology and telecommunications industries

Abstract: This research studies how innovation competences affect the stock of intangibles and facilitate the development of intellectual capital (IC). We develop a theoretical model with these constructs, in which we distinguish two dimensions within innovation competences — Schumpeterian and continuous improvement competences; and three dimensions for IC — human capital, structural capital and relational capital. Theoretical relations are tested in an empirical study carried out in 222 Spanish firms from the Biotechnology and Telecommunications industries. We prove that innovation competences positively affect the stock of intangibles and facilitate the development of relational capital, structural capital and human capital.

Opportunism and unilateral commitment: the moderating effect of relational capital

Abstract: Purpose – This paper focuses on the decision by firms to commit and to invest unilaterally. It is concerned with the intriguing question as to whether unilateral commitments are mechanisms that help a firm manage risks in alliance relationships in a proactive manner. Design/methodology/approach – The hypotheses are tested with survey data on 344 alliance relationships of European biotechnology small and medium-sized enterprises (SMEs). Findings – In this paper it is shown that unilateral commitments have a positive effect on perceived opportunistic behavior. However, the evidence suggests that, by creating a basis for exchange, relational capital moderates the relationship between unilateral commitments and the perception of opportunistic behavior. Research limitations/implications – This research adopts a static perspective. It is known that alliances evolve, and develop. Consequently, future research could extend and modify this study along this dimension and analyze the evolution of unilateral commitments through longitudinal research. Practical implications – From a managerial point-of-view, this paper shows that motivation for commitments is different and their effects on risk perception can be contradictory according to the level of relational capital in the inter-organizational relationship. Originality/value – This paper is one of the few empirical studies that explored the concept of unilateral commitments and provided empirical evidence to highlight the significance of some managerial practices such as building trust.

Sell-side analysts' creation of value : key roles and relational capital

Abstract: Purpose – The purpose of this paper is to increase the transparency of the value‐creation chain in the stock market. It aims to: conceptualize the value‐added through the relational capital, inductively develop models on how values are created, and discuss the values created for the analyst firm, the clients and investors in the stock market in general.Design/methodology/approach – The paper is based on a case study of sell‐side analysts at a big Swedish investment bank and their work with real life situations of changes in recommendations.Findings – The findings of the case study indicate that analysts, through their relational capital, access competitive advantages needed for remaining on a highly competitive market. They get access to value‐added information and knowledge and also business for the firm. This helps them to fulfill the three roles played, i.e. as information intermediaries, knowledge builders and businessmen. However, the analysts' dependencies, due to their relational capital and the an...

Effects of Relational Capital and Commitment on Venture Capitalists' Perception of Portfolio Company Performance

Abstract: This study is an attempt to explain how therelationship between a venture capital firm (VCF) and its portfolio companies(PFCs) affects the VCF's perception of PFC performance. A discussion ofrelational capital and the relationship between trust and perceived performanceleads to the formulation of several hypotheses. These hypotheses predict thatVCFs' perception of PFC performance will be positively related to the degree towhich the VCF and PFC trust each other, interact socially, and share goals.Finally, VCFs' commitment to a PFC is expected to improve the VCF's perceptionsof PFC performance. Data from a 2002 survey of 298 U.S. venture capital firms are used to testthe hypotheses. Supplemented by interviews with several venture capitalists,the data indicate that relational capital and VCF commitment to the PFC doindeed contribute to VCFs' perceptions of PFC performance. Trust, socialinteraction, goal congruence, and VCF commitment all contribute uniquely toperceptions of PFC performance. (SAA)

An Intellectual Capital Audit of the Grand Duchy of Luxembourg

Abstract: In a knowledge economy, a nation’s assets shift from the physical—natural resources or production facilities—to the intangible. These intangible assets comprise a country’s intellectual capital and, like financial capital, require astute management and shrewd investment if the country is to prosper. To facilitate such decision making, an assessment of these intangible assets can be conducted. We call this an intellectual capital audit. Resembling a corporate financial audit, it enumerates the country’s intangible assets. Also like a financial audit, it provides a benchmark for future audits and makes recommendations for improvement. However, unlike a financial audit, recommendations are based on comparisons with other countries that share certain key characteristics with the nation or are economic competitors. What follows are the results of an initial intellectual capital audit of the Grand Duchy of Luxembourg. It uses a variation of the Edvinsson/Skandia Navigator model because of the scheme’s ease of understanding and adaptability to Luxembourg’s unique characteristics. Intellectual capital is broken into three components consisting of human capital, structural capital and relational capital. It uses economic indicators to assist in determining how well Luxembourg’s intellectual capital is being put to use. The results can be summarized by noting that Luxembourg ranks very high in all three components and that this is reflected in the comparative statistics that are also presented.

Opportunism and unilateral commitment: The moderating effect of relational capital

Abstract: Purpose – This paper focuses on the decision by firms to commit and to invest unilaterally. It is concerned with the intriguing question as to whether unilateral commitments are mechanisms that help a firm manage risks in alliance relationships in a proactive manner. Design/methodology/approach – The hypotheses are tested with survey data on 344 alliance relationships of European biotechnology small and medium-sized enterprises (SMEs). Findings – In this paper it is shown that unilateral commitments have a positive effect on perceived opportunistic behavior. However, the evidence suggests that, by creating a basis for exchange, relational capital moderates the relationship between unilateral commitments and the perception of opportunistic behavior. Research limitations/implications – This research adopts a static perspective. It is known that alliances evolve, and develop. Consequently, future research could extend and modify this study along this dimension and analyze the evolution of unilateral commitments through longitudinal research. Practical implications – From a managerial point-of-view, this paper shows that motivation for commitments is different and their effects on risk perception can be contradictory according to the level of relational capital in the inter-organizational relationship. Originality/value – This paper is one of the few empirical studies that explored the concept of unilateral commitments and provided empirical evidence to highlight the significance of some managerial practices such as building trust.

Social Networks and Supplychain Management in Rural Areas: A Case Study Focusing on Organic Olive Oil

Abstract: In recent years, due to the growing supply of organic production, the economic performances and the competitive advantages of the farms, have become more dependent on network organisations in the supply chains. This evolution requires methodological approaches able to capture all the variables involved in the generating value processes. Our aim is to show that different structure of social networks – which groves on different positions in terms of achieving common goals and sustaining and developing norms and networks for collective action - is helpful for successful uptake of socio-economic processes and then in taking market choices and in framework shaping of supply-chain in rural areas. “The importance of understanding formal and informal organizations and their contribution to the construction of social capital is necessary to perceive how people mobilize and acquire a wide range of assets and gain access to decision making processes, technologies, resources and markets, and benefit from them” (D.Parthasarathy and V.K.Chopde, 2000). So the network dimension of the supply-chain becomes a key element, and enables us to understand better the competitive performances of firms. The relationships of firms, among intangible assets, are recently considered one of the main sources of profit. So the relational capital forms the essence of the value of the firm and it is advantages on the whole coming out by occupying a specific position (role) in the network of social relationships, the social network (Costabile, 2001). The goods present in a context are not enough to explain the wealth of a firm or a supply chain or a sector, so it is necessary to understand the nature of exchanges and how do they work trough the network. For these reasons our study compares supply chains of organic olive oil in Italy and Spain using the Social Network Analysis. The data was collected by survey in two areas: the Sierra de Segura (Andalucia, Spain) and the province of Bari (Puglia, Italy). By the results of our study we can assert that the Sierra de Segura shows a simple network which allows, trough a cooperative organisation, to generate value for the farms. On the other hand, in the province of Bari the network organisation is quite disperse, denoting a luck of organisation which bring to a low level in competitiveness of the whole supply chain. At the same time, firms with a good economic results have also a central position in the network.

Leveraging Tacit Knowledge in Alliances: The Importance of Using Relational Capabilities to Build and Leverage Relational Capital

Abstract: Effectively managing existing tacit knowledge stocks and transferring knowledge between partners contributes to firm capabilities that allow them to differentiate their goods and services from those of their competitors. Because it also helps them to provide greater value to customers, it contributes to the development of a competitive advantage. In highly competitive industries, firms need to focus on proactively managing their knowledge resources to ensure survival. However, the knowledge management process is at times complex especially because of the difficulty involved in conveying tacit knowledge. Due to its latent potential for enabling firms to achieve potential competitive advantage, how firms utilize and transfer stocks of tacit knowledge requires enhanced understanding. In specific, we explain how firms use relational capabilities to build relational capital with partners. In turn, relational capital facilitates the transfer of tacit knowledge between collaborating partners. We develop several propositions regarding the factors likely to influence the transfer of a firm's tacit knowledge resources in strategic alliances. The importance of social capital's relational dimension, relational capital, in this process is highlighted.

Constructivist and Analytical Approach to Intellectual Capital

Abstract: Intellectual capital as a concept is only as much useful for the theory and practice of management as it helps explaining the differences or to create value addition to the performance of organization. Multiple studies have been carried out on this account, a series of them was developed employing original framework by Bontis (1998). Their methodological findings and encountered controversies in the actual results enable us to advance the model further, to extend its applicability as well as analytical rigorousness and to suggest new aspects for the framework of our study to be carried out in the pan- Baltic region. In order to reinforce the case for the model explaining the performance of the organization by the construct of intellectual capital we begin with the constructivist approach to the problem and then continue with the analytical model. Social constructivism approach emphasizes the importance of culture and context in understanding what occurs in society and constructing knowledge based on this understanding. Contrary to the physical science where understanding about the object does not change its behavior or characteristics, impact of the subject’s expectations or belief about the object could be huge in social science. Competitive environment and constant changes create constant demand for changing management theories and once applied correctly, they facilitate the value creation in the organization both through the differentiation as well as through receptiveness to the changes in organizational environment. During the last decade, intellectual capital became one of such theories, explaining value creation for the organization through deconstructing of its three sub-domains – human capital, structural capital and relational capital. Findings from the pilot study of intellectual capital done by N.Bontis (1998) have set several lasting implications for the future research which are evaluated, analyzed and also compared to the later studies done by other authors in this article. The findings have reinforced the argument about the contextual (industry-specific) nature of relationship between the intellectual capital and the performance of the organization as well as benchmarking against industry norms. Therefore this paper should serve as a roadmap for further applications and advancements of the current model explaining why and how the phenomena of intellectual capital is a successful social construct holistically explaining the differences and shifts in the performance of the organization.

El capital humano en la sociedad del conocimiento

Abstract: The purpose of this artic1e is to develop a refIexive and analytic vision on the importance of the formation of the human resource under the focus of the Theory of the Human Capital. Stoner, Freeman and Gilbert (2001), they define it as the investment in the development of the intellectual capital of an organization, whicli implies to build the best environment and attitude for the creation and diffusion of the knowledge. The investment in the human capital involves the assets centered in the human being that involve to the collective ability, creative capacity as well as also to the dexterity to resolve problems. Consequently the institutions should be able of thinking holistically, to imply to each one of its members in the dynamics of the development of the know-how acquire the responsibility and fundamental importance in the present company of the know ledge that covers so unlike environments and complexes in the social, economic, and educational processes; Being converted the knowledge in the value of the organizations from there the importance of the development of the human resource. In conc1usion the human capital is associated to the essential capital s of the human being, that is to say, to the intellectual capital, the intuitive capital, the emotional capital and the relational capital, this has carried to that the organizations and the nations become aware of the importance of this resource therefore the people is the origin, the nature and the purpose of the organizations and of the countries and without this does not reproduce itself Of any type.

Intellectual capital is the driver of global competitiveness

Abstract: The value of CUlTent organizations and industries is increasingly located in intangibles (human capital, structural capital and relational capital) and basically,knowledgehasbecomea factor of production and a main asset. This Intellectual Capital does not appear on balance sheets,but ultimately does have an enormous impact and is basic to match the requirements of knowledgeintensiveeconomiesin Asia and Europe.