Benefiting from your buddy: A conceptual exploration of the links between social capital and firm innovative capability under environmental turbulence

Abstract

Purpose

The purpose of this paper is to offer a conceptual understanding of the role played by social capital when firms engage in collaborative partnerships to develop their innovative capability, especially under environmental turbulence.

Design/methodology/approach

The paper is theoretical in nature, drawing conceptual insights from two complementary theories: the resource-based view of the firm and institutional theory.

Findings

Social capital plays a beneficial role by enhancing the innovative capability of firms, but only up to a point. The paper argues social capital has both positive and negative effects and follows a non-linear relationship with innovative capability. Further, this relationship is also affected by the level of environmental turbulence faced by the firm.

Originality/value

By conceptualizing social capital as a double-edged sword in terms of its impact on firm innovative capability, the paper offers insights for managerial action and practice.

Citation

K. Dutta, D. (2013), "Benefiting from your buddy: A conceptual exploration of the links between social capital and firm innovative capability under environmental turbulence", American Journal of Business, Vol. 28 No. 2, pp. 192-209. https://doi.org/10.1108/AJB-04-2013-0022