The influence of intangible forms of capital on farms

Abstract

Intangible issues, which are often very difficult to be quantified become more and more the field of interest of social sciences. There are many research works demonstrating that various types of knowledge, institutions, social networks, and social relations have a great influence on human activities as for efficient achievement of the actors’ goals. This paper relates expert knowledge (shaping professional qualification) to human capital and tacit knowledge (understood as a broader, general, and contextual knowledge) to cultural capital. Both forms of capital exist in their primary form only in concrete individual persons. Concerning collective persons (firm, community), cultural and human capitals are transformed into intellectual capital. Work with specific knowledge, tacit knowledge and capitals corresponding to them shows the role of social networks and social capital in their organization. Using the analysis of two farms based on natural experiment, the paper demonstrates the role of tacit knowledge and cultural capital (opposing to the overestimated role of expert knowledge and human capital). The conclusions outline social determination of both types of knowledge through social networks and social capital needed for an efficient work of a farm.