Social Capital Impact On Service Supply Chains

Abstract

Purpose This study explores the impact of social capital on service firm supply chains.

Design/methodology/approach The theoretical underpinnings of social capital is reviewed from various disciplines, including sociology, management, and operations management. This is used to develop a conceptual model of the use of social capital in a service supply chain setting.

Findings - Social capital is proposed to improve the operational performance of service firms as a source of both physical and information resources. The impact of social capital is projected to vary by firm size and service type. Small firms have limited resources and thus a need for resources obtained through social capital. Service firms that have high customization and customer contact are subject to process variations which can be mitigated by social capital. A conceptual model is presented to test several propositions related to social capital.

Originality/value The impact of social capital has not been widely studied in an operational setting. This is the first known study to specifically analyze the impact of social capital in service supply chains.