Managing Knowledge-Intensive
and Creative Industries
Master’s course (GS Management) Fall 2010
Alexander Styhre
Dept of Business Administration
School of Business, Economics, and Law
University of Gothenburg
Course introduction and outline
• The purpose of the course is to train the students to get an
understanding of the managerial demands in organizations based
on intellectual capital and creativity.
• The course consists of a series of lectures, guest lectures, a
literature seminar, and the presentation of the final exam paper.
• The lectures are theoretical (by AS) or aimed at introducing various
managerial practices in different industries and sectors (guest
lectures).
• Course literature: journal papers addressing a variety of aspects
covered in the course. Course papers downloaded from GU library.
• Advanced level Master’s course structured as a Ph.D. courses
• All slides will be posted on the course homepage.
Schedule
Lecture
Lecturer
Reading
Knowledge society, knowledge capitalism, Friday, Sept 2
etc: Setting the scene
10.00-12.00
Professions, professionalism, and the
creative class
Tuesday, Sept. 7
10.00-12.00
Papers examination assignment:
Introduction
Managing science-based work
Tuesday, Sept 7
13.00-14.00
Alexander Styhre, Dept. of Business Administration Nordenflycht (2010),
Townley, Beech &
McKinlay (2009)
Alexander Styhre, Dept. of Business Administration Kärreman, Dan &
Alvesson, Mats,
(2004), Leicht &
Fennel (1997)
Alexander Styhre, Dept. of Business Administration Paper template
Tuesday, Sept. 14
13.00-15.00
Mats Sundgren, AstraZeneca
Project Management in the Event
Industry: collective top-down,
planned ad-hoc and other
challenges
Managing architect work
Tuesday, Sept. 21
13.00-15.00
Göran Lindahl. Chalmers University of Technology
Tuesday, Sept. 28
13.00-15.00
Cohen et al., (2005);
The videogame development community
Thursday Oct. 7.
10.00-12.00.
Fredrik Nilsson, White Architects & Chalmers
University of Technology
Peter Zachariasson, GRI
Literature seminar
Tuesday Oct. 5.
13.00-15.00.
Recruiting and leading management
consultants
Tuesday Oct. 12.
13.00-15.00.
Title to be announced
Tuesday Oct. 19.
13.00-15.00.
Bridging the culture sector and industry:
Challenges and opportunities
Final seminar: Paper presentation
(roundtable presentation)
Thursday Oct 21
13.00-15.00.
Zackariasson, Styhre
and Wilson (2006);
Tschang (2007)
Alexander Styhre, Dept. of Business Administration Owen-Smith (2001)
Bechky (2006)
Ola Bergström, Dept. of Business Administration
Bergström & Knights
(2006)
Bergström, Hasselblad
& Kärreman (2009
Gideon Kunda
Tel Aviv university, Visiting professor
Dept. of Business Administration
Evelina Wahlquist, Dept of Economic. geography
Thursday Oct. 28.
13.00-15.00
Alexander Styhre, FEK
Mandatory
participation
Munos (2009)
Sundgren & Styhre,
(2003)
Lindahl and Nina
Modig
Løvendahl (1995)
Examination
• The examination is based on two papers being submitted
individuallly or in groups of two students. The first paper is
compulsory but gives no grade and is based on the
literature seminar readings (instructions in course PM), the
second is based on the writing of a paper. The third, onehour lecture will introduce the exam assignment.
• Grading will be based on the totality of five criterias: (1)
problem discussion, (2) theoretical framework, (3)
presentation of the case/argument, (4) theoretical and
practical contributions, (5) overall readbility and stylistic
skills. All five parameters will be graded from 1-10 points.
Low pass: 25; High pass: 37,5 points.
• More details about the paper writing exam in the third
lecture (Sept. 7, 13.00-14.00).
Why a course on knowledge-intensive
and creative (KI&C) industries?
• The intellectual content of work has increased during the Post-WWII
period; higher degrees of education and more technology and sciencebased professions. Sectors include technology-based companies, health
care, event management, music industry, and a wide area of other
industries.
• Professional work is more complicated to control as intellectual capital
cannot be fully accessible for managers. Workers ”control their means of
production.”
• Professional work is based on professional ideologies, motivational
aspects, communicative skills, and other behavioural factors.
• Technology and machinery play a key role in contemporary work but
always in association and collaborations with human capital.
• The management of KI&C industries is often indirect and subtle,
concentrating on the joint construction of meaning.
• In general, a need for understanding how knowledge-intensive and
creative organizations function.
Lecture 1: Knowledge-intensive firms
and creative industries
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Growth of knowledge intensive and creative work: (1) in employment
In the UK: “[T]here is little doubt that sectors characterized by knowledge work are growing, in some cases quite rapidly. For
example, the science and technology sector as a whole has been growing on average between 4% and 16% annually over
the last 15 years”. (Robertson & Swan, 2004: 129)
•
In the U.S.: “Lower skilled jobs now account for 16 percent of the workforce, but service employment has grown only 4
percent since 1960. Nor do managerial and sales work account for most of the increase in white-collar work. Today 1.5 and 4
percent more Americans work respectively as managers and salespersons than in 1950. The largest expansion in white-collar
employment has occurred among professional and technical occupations, Since 1950 professional and technical
employment more than doubled, growing from 8 percent to 18 percent of the workforce. In fact, by 1991, professional
and technical workers had become the largest sector surpassing even clerical workers and operatives”. (Barley & Kunda,
2006: 55-56.
•
“Non-academic science and engineering (S&E) jobs grew at more than four times the rate of the total U.S. labor force
between 1980 and 2000. S&E employment increased by 159% between 1980 and 2000, an average annual growth rate of
4,9%, in comparison to 1,1% for the entire labor force”. (Powell and Snellman, 2004: 205)
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(2) In patents
Growth after 1987 from 80,000 to 170,000 patents annually in the U.S.
Eightfold increase in university patents in the period 1976-1998 (Powell and Snellman, 2004: 204)
(3) In research interests
Many studies and publications addressing knowledge-intensive industries , creative industries, and professional service firms
(e.g. accounting firms and law firms)
The shifting focus of the economy
• “By 2009, Wal-Mart employed about as many Americans (1.4
million) as the 20 largest U.S. manufacturers combined, and 9 of the
12 largest employers were retail chains.” (Davis, 2009: 30)
• In 2002, “the pharmaceutical industry accounted for 2 percent of
the Fortune 500 companies, but 57 percent of these companies’
total profit.” (Brody, 2007: 57)
• During the 1970s, pharmaceutical companies “averaged 8,9 per
cent profit as a percentage of revenue” in comparison to 4,4 per
cent for all Fortune 500 industries. In the 1980s, 11,1% compared to
4,4% and in the 1990s 15,1% compared to 4.1%. (Lexchin, 2006: 11)
• Pharmaceutical industry has a persistent higher return on
investment than other industries.
Definitions
•
•
Knowledge economy
“We define the knowledge economy as production and services based on knowledge-intensive activities that contribute to
an accelerated pace of technological and scientific advances as well as equally rapid obsolescence. The key components of a
knowledge economy include a greater reliance on intellectual capabilities than on physical inputs or natural resources,
combined with efforts to integrate improvements in every stage of the production process, from the R&D lab to the factory
floor to the interface with the customer”. (Powell and Snellman, 2004: 201)
•
•
Knowledge-intensive firms
“The category of knowledge-intensive companies . . . refers to firms where most work is said to be of an intellectual nature
and where well-educated, qualified employees form the major part of the work force” (Alvesson, 2001: 863)
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“Typical examples of companies in this category are law and accounting firms, management, engineering and computer
consultancy companies, advertising companies, R&D units, and high-tech companies” (Alvesson, 2000: 1101)
The creative industries defined
“Those activities which have their origin in individual creativity, skill, and talent, and which have a potential for wealth and
job creation through the generation and exploitation of intellectual property”. (Task force at Dept. of Culture, Media, and
Sports, 1998, cited in Roodhouse, 2006: 52)
•
Knowledge-intensive work is often specialized, based on university education and the access to professional skills.
•
Creative work is commonly less professionalized, i.e., is less “monopolized” and sheltered by entry-barriers (e.g., the case of
video game developers) and more focused on aesthetic and sensible knowledge.
Shared theme in KI&C industries:
“Competetive advantage through people”
• “It doesn't make sense to hire smart people and then tell them what to
do; we hire smart people so they can tell us what to do.” Steve Jobs,
Founder, Apple
• “KIFs are particularly good examples of contemporary forms of ‘people
dependent’ organizations. As such they are said to embrace the ideology
of ‘entrepreneurialism’ as the pervasive structure of governance.”
(Robertson & Swan, 2004: 124)
•
• “[T]he creative process is sustained by inspiration and informed by talent,
vitality and commitment (i.e., a need to create rather than to consume):
this makes creative work volatile, dynamic and risk-taking, shaped by
important tacit skills (or expertise) that are frequently submerged (even
mystified) within domains of endeavour. Hence, the crucial relationship
between creativity and innovation (i.e., the process of development of
original ideas toward their realization/consumption) remains unruly and
poorly understood.” (Jeffcut, 2000: 125. Emphasis added)
Leading and managing knowledgeintensive and creative work (1)
• How to manage creativity (Elsbach, 2009): (1) Encourage creative
thinking
• “(1) build organizational environments that support creative
thinking (e.g., decentralize supervision, create cross-functional
collaborations, open communication channels) . . . (2) reward
behaviors known to lead to creative output while removing
punishments for these same behaviors (e.g., reward risk-taking, and
learning of information outside of one’s area of expertise, and
remove punishment for failures and non-conformity)” (Elsbach,
2009: 1043)
• (1) Implies novel organization forms, (2) implies new managerial
practices promoting new thinking.
Leading and managing knowledgeintensive and creative work (2)
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(2) Control through norms and identities (Elsbach, 2009)
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Management control in KI&C industries commonly a combination of “hard” and “soft” forms of control.
•
“Knowledge-intensive firms, which typically draw heavily upon cultural-ideological modes of control, are
specifically singled out as organizational forms that use social identity and the corporatization of the self as a
mode for managerial control”. (Kärreman & Alvesson, 2004: 151. Emphasis added)
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“[W]e will use the label socio-ideological control for attempts to control worker beliefs and technocratic control
for attempts to directly control worker behavior . . . In the technocratic type, management works primarily with
plans, arrangements, and systems focusing behavior and/or measurable outputs”. (Kärreman & Alvesson, 2004:
152)
“The basic idea of management, as conventionally understood, that of a separation between the planning and
execution of tasks, is hardly at all a key feature of KIFs. KIFs in this sense by definition are non-managerial: the
more it makes sense to talk about knowledge-intensive activity, the less it becomes relevant to employ a
(conventional) management model of thinking.” (Alvesson, 2004: 121)
“KIFs tend to be characterized by stronger inputs of normative control than is common in most other
organizations. Some KIFs do rely heavily on technocratic form of control—soft rules and procedures as well as
measurements by performance indicators—but these are included in, and fuel, normative control by operating in
a non-mechanical way, influencing the idea, expectations, and subjectivities of people.” (Alvesson, 2004: 137)
Three examples of managerial
challenges in KI&C work
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•
•
Study of residents: Physicians in training are unwilling to become leaders in their
clinics until they are fully skilled; yet they want physicians as doctors (a ”prisoner’s
dilemma); a need for ”de-paradoxify” the predicament of the physicians and redefine the physicians profession as being both ”scientific” and ”administrative”.
[Professional identities and competing institutional logics]
Study of architects: The profession is considered a ”creative industry” but
architects commonly perceive their own work as being devoid of creative
elements; how can management recognize the creative competence without
making the architects cynical about their work? A few solutions: Seminars, field
trips, joint discussions, etc. reaffiriming the architect’s sense of having specialized
skills and competencies. [Professional identities and motivation]
Study of management consultants: Consultants were running their own ”private
brand” within a well-known consulting firm, yet they needed to learn new things
from their colleagues to further reinforce their expertise and identities but threr
were no traditions in the firm to enange in joint thinking and collaborations? How
can management create a sense of community among a group of individual
experts. [professional knowledge sharing]
Literature: Nordenflycht (2010) and
Townley et al. (2009)
• Three characterstics of KIFs: Knowledge intensity, low capital intensity, and
a professional workforce.
• 1. Bonding (punishment for low performance), Reputation (positive
rewards), appearance, ethical codes. The concept of “Cat herding”
• 2. Relatively little reliance on investors and venture capital. (could be
disputed! The cases of e.g., Biotech)
• 3. Highly skilled co-workers.
• “I use the term professionalized workforce to refer specifically to the
presence of the other, two institutionally features of professionalization:
ideology and self-regulation.” (Nordenflycht, 2010: 163)
•
• “A professional ideology consists of a set of norms, manifested both in
explicit ethical codes enforced by professional associations and
internalized preferences, often developed during professional training.”
(Nordenflycht, 2010: 163)
Townley et al. (2009)
• Creative industries relies on ”intellectual
property” (British dept. of Culture, Media and
Sport, 1998) (Townley et al., 2009: 939)
• Creative work” deals with ”expressive or
aesthetic tastes rather than utilitarian needs.”
(Townley et al., 2009: 939)
• Distinction between (1) intellectual, (2) social,
(3) creative and cultural capital, and (4)
economic capital.
”Aesthetic knowledge” in creative work
• “Aesthetic knowledge offers fresh insight and awareness and while
it may not be possible to put into words, it enables us to see in a
new way”. (Taylor and Hansen, 2005: 1213. Emphasis added)
•
• “Intellectual knowledge is driven by a desire for clarity, objective
truth and usually instrumental goals. On the other hand, aesthetic
knowledge is driven by the desire for the subjective, personal truth
usually for its own sake”. (Taylor and Hansen, 2005: 1213)
• “Aesthetic knowledge is embodied, It comes from practitioners
understanding the look, feel, smell, taste and sound of things in
organizational life.” (Ewenstein and Whyte, 2007: 689. Emphasis
added)
• Example: Architect work
In summary
• KI&C accounts for a growing part of the aggregated
economy in the West.
• KI&C hires highly specialized co-workers, being
committed to their work and having strong
professional beliefs.
• While traditional industries have used direct
(inspection of work speed) or bureaucratic control
(e.g., routines specified, output control) of co-workers
In KI&C industries are indirectly controlled through
attitudes, beliefs, norms, professional identities etc. it
is a form of ”soft control” or ”unobtrusive control.”
Input variables
Traditional industries
Knowledge-intensive work
Financial resources
High
Ranging from high (e.g.,
pharmaceutical industry) to
basically covering labour costs
(e.g., the university)
Intellectual resources
Of some importance in specialist or
expert professions located in certain
functions
Basic production factor
Tangible resources
(e.g., technology,
laboratory equipment)
Determines the production system (as in
the process industry)
Plays a key role but always in
collaboration with expertise (e.g., in
the case of CAD systems in architect
offices)
Forms of control
Direct or bureaucratic control
Leadership practice
Monitoring activities through key
performance indicators and planning
Indirect and based on identities and
motivation (“socio-ideological
control”)
Motivation and symbolic
management; indirect control
through input variables such as
time in project work.
Organization forms
Divisionalized and bureaucratic
organizations
Network-based organizations,
project work, and flexible
organization arrangement
(“postbureaucratic organizations”).
Managerial challenges
Maximize output at any given stock of
resources (ROI); avoid conflicts with coworkers
Motivate co-workers to contribute
to the shared activities.
Lecture 2: The concepts of professionalism
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Profession is a major term in the sociology and organization theory vocabulary.
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Definitions
“[P]rofessionalism is a set of institutions which permits the members of an
occupational to make a living while controlling their own work.” (Freidson, 2000:
17)
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“The ideological core of professionalism is its claim to a discretionary
specialization.” (Freidson, 2000: 109)
“We define professional work as occupational incumbents: (a) whose work is
defined by the application of theoretical and scientific knowledge to tasks tied to
core societal values (health, justice, financial status, etc.), (b) where the terms and
conditions of work traditionally command considerable autonomy and freedom
from oversight, except by peer representatives of the professional occupation, and
(c) where claims to exclusive or nearly exclusive control over a task domain are
linked to the application of the knowledge imparted to professionals as part of
their training” (Leicht and Fennell, 2008: 431)
Professional work
• “Professionalization: The result of a successful professional project; an
occupation is professionalized to the extent that it successfully defines a
set of work tasks as their exclusive domain, and successfully defends that
domain against competing claims.” (Leicht and Fennell, 2001: 8)
•
• In professional work ”[T]he ratio of indeterminacy to technical rules in
professional work has to remain at a high level.” (Malhotra and Morris,
2009: 899)
• Three types of professional work: normative (lawyers), technical
(engineers) and synchretic (accountants) (Malhotra and Morris, 2009)
• “In fact, profession is more often defined as an occupation which tends to
be colleague-oriented, rather than client oriented”. (Larson, 1977: 226)
History of professionalism (1)
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Forerunner: The medieval guild
“The craft guild was a formal association of specialized artisans, the masters, whose authority was
backed by superior political sanctions” (Epstein, 1998: 685)
•
“Economic explanations of the craft guild assume that it performed one or more of the following
functions:
it acted as a cartel, both as buyer of raw materials ad as a seller of its products;
it enforced quality standards which lowered asymmetries in information, particularly outside the
local marketplace where the products were little known;
it provided members with intertemporal transfers of income in highly unstable markets, smoothing
the trade cycle and it served as a bargaining unit in narrow markets in which agents held market
power;
it supplied cheap credit in underdeveloped financial market with high information costs;
it operated as a political and administrative unit that protected its members from expropriation by
opportunistic urban elites, who in exchange demanded that it collect capital tax and tie apprentices
so as to provide cities with a ready military force;
or finally and most noxiously, it was rent-seeking organization that lobbied for economic privilege
from the state”. (Epstein, 1998: 685-685. Emphasis added)
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History of professionalism (2)
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Professionalism tied to formal education and interest organizations
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“All the learned professions were tied, in principle, to one organizational base for the transmission of
knowledge: The traditional university. Until its reform was achieved, the university hindered rather than
helped the production of systematic scientific and technical knowledge . . . It appears, in fact, that the
number of large hospitals in Paris was one of the main reasons why Paris became the world’s capital of
medical science in the first half of the nineteenth century. Overcoming the ancien régime of guild barriers,
these hospitals brought together surgeons and physicians, thus allowing physicians to incorporate the
localized structural pathology, which surgeons had spontaneously applied, and to start the scientific study
of specific diseases”. (Larson, 1977: 24)
•
A ”Weberian view” of profession: the ”monopolization of power”
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“[T]he professional project is an organizational project; it organizes the production of producers and the
transaction of services for a market; it tends to privilege organizational units in the system of stratification;
it works through, and culminates in, distinctive organizations—the professional school and the
professional association”. (Larson, 1977: 74. Emphasis added)
•
Professions in-between markets and democratic institutions
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“The professions, neither democratic nor capitalist, played an important role in efforts to shape and (at
times) to constrain capitalist development in relation to standards of a broader social well-being.” (Brint,
1994: 16)
History of professionalism (3)
• Most recent period:
• “Beginning in the 1960s, social trustee professionalism fell under
increasingly attack for its apparent lack of correspondence to the
organizational realities of professional life.” (Brint, 1994: 39)
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• “The rise of expert professionalism” (Brint, 1994): Expertise plus market
value.
• e.g., the university: From “elite institution” (the “ivory tower”) to a
“student factory” or “teaching machine”:
• “In 1900, there were about three tertiary education students per 10,000
worldwide. By 1950, this number had increased eight-fold to 25. By 2000,
it had increased another six-fold to 166”. (Frank and Meyer, 2007: 289)
• The case of physicians: From “professional elite” to “health care
managers”.
Expert professionalism and
managerialist governance
• Managerialism
• “Managerialism is a mode of thought and action based on a desire to
control, enhance efficiency, normalize and suppress conflict and promote
the universalization of sectional managerial interests.” (Kuhn, 2009: 685686)
•
• “Professionals operating under managerialism are thus subject to both the
normative control of the profession and the bureaucratic control of the
corporate enterprise, leading to both a continual self-surveillance and a
narrow technical rationality.” (Kuhn, 2009: 685-686)
• Case: health care
• Two logics: (1) medical professionalism, (2) business-like heath care.
• “The two logics continue to co-exist and neither in can be considered
dominant.” (Reay and Hinings, 2009: 630)
Professional jurisdiction
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In order to operate as legitimate professionals, actors need domains of jurisdiction. i.e.,
domains of legitimate expertise.
•
In many cases, domains of jurisdiction are sites for struggle between groups of professional
workers (e.g., obstetricians and midwives, surgeons and radiologists, scientists and nonscientists, etc.).
•
The higher the boundary between domains of jurisdiction, the more “successful” the
professionalization (e.g., the case of being a “medical doctor” and an “author”)
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“Jurisdiction is contested through public, legal, and workplace claims, for control over task
areas . . . These jurisdictional claims act to shift both relations between professional groups
and the boundaries of their core work domains.” (Bechky, 2003: 721)
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Boundary work (Gieryn, 1983); draw the line between domains of responsibility and
authority.
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“Boundary work also a useful ideological style when monopolizing professional authority
and resources in the hands of some scientists by excluding others as ‘pseudoscientists.’”
(Gieryn, 1983: 787-787)
Managing professions
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Professional work is characterized by different situations that needs to be evaluated and individually handled:
•
“In actuality, the assumption of relative homogeneity within the profession is not entirely useful: there are many identities,
many values, and many interests . . . We call these groupings within professions ‛segments’ . . . We shall develop the idea of
professions as loose amalgamations of segments pursuing different objectives in different manners and more or less
delicately held together under a common name at a particular period in history.” (Bucher and Strauss, 1961: 326)
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Professional work is often based on professional ideologies rather than distinct practices:
“Collins (1979) found a surprisingly weak correlation between the requirements of educational credentials and the
skills/knowledge requirements of jobs. On the basis of empirical observation he argued that education serves to socialize
prospective professionals into status cultures by drawing a line between insiders and outsiders”. ”. (Lamont and Molnár,
2002: 178)
Ideology and self-regulation
“I use the term professionalized workforce to refer specifically to the presence of the other, two institutionally features of
professionalization: ideology and self-regulation.” (Nordenflycht, 2010: 163)
“A professional ideology consists of a set of norms, manifested both in explicit ethical codes enforced by professional
associations and internalized preferences, often developed during professional training.” (Nordenflycht, 2010: 163)
“Ideologies provide frameworks for judging both how patients should be helped and what is harmful for patients”. (Strauss,
et al., 1964: 365)
Becoming a professional: The role of
identity and ideology
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Professional ideology: The totality of belief guiding the professional in his or her day-to-day work
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Professional ideologies are learned in tertiary training (at the university) and when being socialized into
the profession.
•
“Student contestation of dominant ideologies is integral to the transformation that occurs during elite
professional socialization . . . the process of becoming professional includes learning to think critically and
to question assumptions. Far from being unwilling dupes of ideological indoctrination, students are selfreflective, and they strategically accommodate and resist the ideologies of their education. During
professional socialization, they must confront and rationalize their future status as a means of facilitating
and thus legitimizing the reproduction of elite privilege”. (Schleef, 2006: 4)
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Danielle, a law schools student at “Graham university” who “firmly believed during her first year of law
school that most lawyers were overpaid and took advantage of their powerful position in society, now says
without criticism: ‘Lawyers work really, really hard . . . the money is deserved. I think lawyers are really,
really smart. I think they are very articulate and on top of things’”. (Schleef, 2006: 2)
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“Elites-in-training” “contest, rationalize, and ultimately enthusiastically embrace their dominant position
in society”. (Schleef, 2006: 4)
•
“The most important audience for professional ideology . . . is the professionals themselves—they need
to believe in the higher mandate that the professionals are alleged to embody”. (Schleef, 2006: 5)
Case: Management consultants
• Management consultants represents ”the World’s newest
profession” (McKenna. 2005. See also Kärreman and Alvesson,
2004)
• Management consulting is not highly institutionalized, i.e., there
are low formal entry barriers to the profession.
• Causality between formal competence and effects is weak or
precarious. Consultants need to have a belief in their methods or
tools.
• Management consultants are often recruited from ”elite schools”
(business schools and engineering schools)
• Symbolic resources play a key role in performing the management
consulting services (”the only guys wearing black suits in LA are
management consultants and FBI”).
• Systems for knowledge sharing become of key importance (Werr
and Stjernberg, 2003).
Professional and occupational groups
covered in the course
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Pharmaceutical researchers (Mats Sundgren)
Game developers (Peter Zachariasson)
Architects (Fredrik Nilsson)
Management Consultants (Ola Bergström)
Artists (Evelina Wahlgqvist)
Event projects managers (Göran Lindahl)
In summary
• Professions and professional ideologies
structure specific fields of expertise.
• Professionalization is a social process aimed at
imposing entry-barriers and controlling
domains of expertise.
• The management of professions is mostly
indirect and through ideologies, norms and
beliefs.
Forms of capital
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Social capital
“[T]he knowledge embedded within, available through, and utilized by interactions
among individuals ad their networks of interrelationships” (Subramaniam and
Youndt, 2005: 451),
Human capital
“[T]he knowledge, skills, and abilities residing within and utilized by individuals”
(Subramaniam and Youndt, 2005: 451),
Social capital is demanded to fully exploit human capital:
“To effectively leverage investments in human capital, it may be imperative for
organizations to invest in the development of social capital to provide the
necessary conduits for their core knowledge workers to network and share their
expertise. Organizations that neglect the social side of individual skills and inputs
and do not create synergies between their human and social capital are unlikely to
realize the potential of their employees to enhance organizational innovative
capabilities”. (Subramaniam and Youndt, 2005: 459)