Enhancing Solutions through Developing Social Capital

There is value in our social networks beyond that which serves our immediate needs. Social capital is the ability to use social networks to accomplish something that cannot be done alone. Business social networks are commonly used in areas ranging from product development to supply-chain management. On a wider scale, social capital can be matched with open innovation through appropriate Internet and physical channel expansions to develop something new for economic development. 

We must only think of how each person enters an economic system through their own particular way of viewing the world. They are defined by their background, education, skill set, cultures, experiences and social networks to view topics from a particular vantage point. Problems are defined based upon how they understand them through historically perceived practical solutions.

As these elements begin to act and interact with each other they create new definitions on how to see problems and potential solutions. The longer they interact solving a significant problem the more likely they will share mutual definitions and perspectives. It is a process of social learning and thought construction based in social construction mechanisms of elemental interaction. 

Few relevant solutions come from a single vantage point. All sustainable solutions are socially negotiated to develop new premises and conclusions. It is the changing of perspective, a focus on the solution, and the enactment of a plan that changes the reality of network members. Philosophical reality can be defined as a perspective of communicated why and why nots that enhance shared explanations.

With open-mindedness and active listening people begin to adjust their perspective and understand the factors in new and unique ways. This adjustment often leads to new solutions for complex problems and greater heights of awareness for involved members. It becomes something bigger than themselves that leads to enlightenment about the nature of life and best paths forward for a people, organization, city or nation. 

Mathews and Marzec (2012) studied social capital from varying industry perspectives and developed a model that fits well with operational management. One can see the similarities on how it applies to wider platforms and networks that improve upon social innovation and economic development. Using relational, cognitive, and structural capital it is possible to enhance HR practices to turn initial social capital into resulting social capital that produces meaningful solutions for a wide group of stakeholders. 

Brookes, N. et al., (2007) Analyzing social capital to improve product development team performance: action-research investigations in the aerospace industry with TRW and GKN. IEEE Transactions on Engineering Management, 54 (4), 814–830.

Choo, A. et. al. (2007) Method and context perspectives on learning and knowledge creation

in quality management. Journal of Operations Management, 25 (4), 918–931.

Cousins, P.D., et al., (2006). Creating supply chain relational capital: the impact of formal and informal socialization processes. Journal of Operations Management, 24 (6), 851–863.

Granovetter, M. (1973). The strength of weak ties. American Journal of Sociology, 78 (6), 1360–1380.

Mathews, R. & Marzec, P. (2012). Social capital, a theory for operations management: a systematic review of the evidence. International Journal of Production Research, 50 (24). 

Singer, M. et. al. (2008). A static model of cooperation for group-based incentive plans.

International Journal of Production Economics, 115 (2), 492–501.

2015 International Symposium on Economics and Social Science

Submission Deadline: September 30, 2014

The 2015 International Symposium on Economics and Social Science (ISESS 2015) is to be held in Bangkok, Thailand on January 21-23, 2015. ISESS 2015 aims to provide a platform which focuses on certain important topics of economics and social science. Detailed information about the symposium can be found on the official website. We sincerely invite your participation for this event. Submitted papers will be subject to a double-blind review process. All accepted papers will be published in the conference proceedings, under an ISSN reference, on CD-ROM support.

Conference Website: http://soci-science.org/isess2015/
Online Submission: http://soci-science.org/isess2015/PaperSubmission.html

Call for Papers: Sustainable Development in Business and Supply Chain Research Conference

Date: 27th to 28th November 2014

Location: London, United Kingdom

Brunel University:

ICSBS2014 is an important international gathering of those interested in business and economics, marketing, Logistics, transportation, supply chain and information technology. The focus for academics, researchers, lecturers and students is to attend best practices workshops and review new ideas in research.

Web address: http://www.icbtsconference.com/14808536/call-for-paper

Book Review: Capitalism, Socialism, and Democracy by Joseph Schumpeter

Joseph Schumpeter’s book Capitalism, Socialism and Democracy brings forward some interesting concepts pertaining to the nature of economics and governmental forms. He believes that Socialism will eventually outstrip Capitalism as a system once the owners of production reject the capitalistic system that made them successful (1).  The early period pure competitive methods that fostered growth will become stagnated as the system fails to change.   

The book seeks to reconcile in part the differences between democracy and capitalism. The best method is the rule of people to create collective governance of society. However, as capitalism grows the average citizen doesn’t have much say in day-to-day politics and becomes more of a support to the legitimacy of others (2). 

To this point it is important to understand that the very core nature of society is to allow some to move forward while others to stay in followership. Difficulties can arise when those with the basic skills and abilities are inherently locked from moving up the social ladder thereby creating two separate societies of existence. As the divide between the two societies grow so does the problems. 

Democracy works when people have sufficient power to vote out and demand changes by elected officials (3).  The official becomes a type of business owner that seeks to find customers to his/her leadership focus. When customers are serviced properly they will re-elect their officials thereby creating opportunities for proper societal alignment. 

The biggest fear capitalism faces is, “the very success of capitalist enterprise paradoxically tends to impair the prestige or social weight of the class primarily associated with it [i.e., the entrepreneurial class] and that the giant unit of control [i.e., large corporations] tends to oust the bourgeoisie from the functions to which it owed that social weight”.

Larger entities will naturally write the rules that lead to the destruction or damage of small business that foster economic freedoms. Without the developing of new and revolving businesses, within the circular creative destruction explained by Schumpeter, the nation will turn to socialism. 

There is much to agree and disagree with in the book. It should be remembered that the book was produced in the 1930’s when world wars were raging, capitalism was threatened, and change was rampant. 

To further Schumpeter’s ideas it is beneficial to include a couple of concepts beyond this book that lead to the success of Capitalism and its governing form called Democracy.

-Upward Social Movement: It is important to foster small business and upward financial movement to encourage motivation in society as well as the development of new ideas and concepts. New businesses and intra or inter-organizational entrepreneurial activities lead to greater innovative and economic growth. 

-Open Dialogue and Information: Democracy requires the voting in and voting out of governmental representatives through proper information and open dialogue. Information should be free flowing, provide alternative points of view, and foster critical thinking. 

-Enhanced Legal Structures: All legal structures should enhance the population and encourage upward social movement. By encouraging greater human advancement it lowers the incentives of crime and costs of dealing with that crime.   Legal structures should not unnecessarily protect monopolies or unjustly restrict human advancement.

-Political Aeration: Allowing new members to enter the political sphere offers the opportunity for continuous adjustment to the will of the people as well as better decision-making matrices among leaders. Stagnated political networks damage long-term development by failing to adjust to world realities.