Corporate Social Capital and Liability: a Conditional Approach to Three Consequences of Corporate Social Structure

Abstract

This chapter defines and illuminates three aspects of corporate social capital which are created by different aspects of corporate social structure. The chapter also shows that corporate structure which generates social capital may become later a liability. The chapter briefly reviews the literature regarding the contingent value of corporate structure in creating competitive social capital. Then two other kinds of corporate social capital, political and cognitive, are illustrated via a case study of an Israeli Armament firm. Finally, the chapter briefly discusses the relations between the three kinds of corporate social capital for business policy and strategy as well as for future studies on corporate advantage.