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.
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