Integration of Social Capital and Organizational Learning Theories to Improve Operational Performance

Abstract

This study focuses on integrating the premises of social capital theory and the theory of organizational learning to improve the operational performance of firms nurturing the buyer-supplier relationship. Social capital theory highlights the importance of developing social relationships between firms to create valuable resources and collectively access critical resources. Organizational learning theory highlights that the learning capacity of an organization strongly depends on top-level leaders' behaviors, organizational structure, culture, and flexibility, and uncertainties in the environment in which the organization functions. Though many studies have focused on the impact of social capital on performance improvements in the buyer-supplier relationship, the interlinkages between social capital and organizational learning have not been given much attention. Based upon these theories, a systemfocused perspective, which showcases the antecedents and outcome of the relationship between collaborative communication and learning, has been proposed in this study. A literature review has been carried out to support the linkages in the proposed conceptual model. Findings suggest that transformational buyers support creating cognitive capital with suppliers. This cognitive capital influences the structural capital, which supports improving the understanding of each party's processes in the buyersupplier relationship when parties have high long-term orientation. Improved learning capability reshapes organizations into flexible systems capable of responding quickly to customer requirements, and consequently, they realize a higher performance level.

The Effect of Innovative Leadership and Creative Leadership to Organizational Learning, Organizational Adaptation and Adaptive Performance

“…Learning with a coefficient of 0.400 (40,0%). The result of this study is in line with Birasnav et al (2019) which states that organizational learning theory highlights that the learning capacity of an organization strongly depends on top-level leaders' behaviors, organizational structure, culture, and flexibility, and uncertainties in the environment in which the organization functions.…”

Absence of personal relationship in a buyer-supplier relationship: case of buyers and suppliers of logistics services provider in Australia

“…While personal relationships have sometimes been shown to have a positive effect on business outcomes, the conflict between some individual-level friendship role expectations and business role expectations has a potential to diminish the benefits of firms' working together (Grayson, 2007). , Birasnav et al. (2019) debated that the transformational buyers support creating cognitive capital with suppliers and social capital influences the structural capital, which supports improving the understanding of each party's processes in the buyer-supplier relationship in a long-term relationship.…”

The Impact of Research and Development and Professional New Hiring on Organizational Innovation

“…Hiring has strategic implications beyond mere counteracting the loss of human capital. An organizations' source of hiring; internal, external, inter-organizational or intra-organizational have a different impact on organizational performance, (Birasnav, Chaudhary, & Scillitoe, 2019;Jeong & Shin, 2019) which affords the organization sustainable and competitive human resources.…”

“…Social connectedness projects the set of interpersonal relationships acquired through networks and connections, mutual understanding and support from formal and informal groups among others that creates value for individuals in the organization (Birasnav et al, 2019;Ferris, Javakhadze, & Rajkovic, 2017). Social capital unconsciously influences one's decision in many ways.…”

“…Social capital unconsciously influences one's decision in many ways. Deductively, from the works of Birasnav et al (2019), sometimes one might not necessarily realize that their actions or inactions are influenced by their trust or beliefs inherited through a social network. Explicitly, social capital can be a dormant or an active threat that influences one's decisions thereby leveraging decision making.…”