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Observing the behavior of your colleagues from time to time can help you spot if something is wrong. Do they often eat together? Do they engage in team building activities often, like going out for a drink together after work? And what about cooperation in the office? Do you hear complaints from team leaders, about colleagues, who do not share information about their work, thereby creating gaps in the flow of their process? Is there teamwork between the departments of your company?

The behavior of your colleagues can give you clear indications about the chemistry and trust between the members of the company. If you see no desire for communication or cooperation between your employees outside of work, there is probably a lack of cooperation in their professional duties as well. In organizations with low social capital, every collective action needs to be negotiated before it is done, because there is no trust between the people, that their help will be appreciated and they will not get help if needed at some point.

Lack of communication and trust may also contribute to the forming of silos in the organization, which divide the people and create unnecessary barriers for the whole company. In order to raise social capital within the organization, the management has to find a way to boost interaction between the employees. For instance, if there are twenty people, who have similar roles, but are divided into different teams, which work on diverse projects, members may be rotated between the teams.

This will not only boost the social capital within the organization but will give a new point of view to already established working methods in the teams. You can do that even with people doing completely different jobs, which is even more interesting. Another way is to organize frequent meetings between the different departments of the company. If you operate in different cities or countries, send employees on business trips to your other bases of operation to familiarize them with the work of their colleagues at first hand. Not only they will see the process for themselves but will deepen the ties with people over there and bring back valuable information to their co-workers, when they return to the office.

Sort your event budget to smaller shares and organize team building and workshops as frequently as possible. It does not have to be a fancy public event, just gather your employees together and show them that they are not just robots, who are paid to give you their time and skills, help them feel appreciated and that are part of something meaningful.

The Problem of the Formation of Social Capital

Parts of this research were conducted when the corresponding author was visiting KTH. The authors are grateful for the financial support from the China Scholarship Council. Use the link below to share a full-text version of this article with your friends and colleagues. Learn more. If you have previously obtained access with your personal account, Please log in.

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Log out of ReadCube. The impact of social capital on economic development has been broadly studied by scholars. However, research in the Chinese context is relatively rare. Drawing upon data from the China General Social Survey, our results suggest that the enhancing effect of social capital on total factor productivity is very limited in the case of China.


The network dimension of social capital is significant only in pooled OLS estimations, and trust as well as the participation dimension of social capital exert no impact across all estimations. Our interpretation is that this is partly due to the fact that trust, values and norms formed in civil society are inherently difficult to transmit to the market sector.

Besides, the impact of social capital on economic performance is undermined when physical capital plays a significant role in production. We therefore propose that the effect of social capital on economic performance is contingent on localized social and economic conditions. Volume 25 , Issue 4. The full text of this article hosted at iucr. If you do not receive an email within 10 minutes, your email address may not be registered, and you may need to create a new Wiley Online Library account. Basingstoke: Palgrave Macmillan. Haddad, L. Harriss, J.

Hirschman, Albert O. Inglehart, R.

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