Strategic Role of Social Capital in Socio-Economic Environment

As a suitable context for increased productivity of human and physical capitals as well as a road to success, social capital plays a crucial role much more significant than both physical and human capitals in organizations and societies. It helps reinforce networks of social relation and solidarity among people and organizations. In the absence of social capital, other capitals lose their efficiency and it becomes particularly difficult to follow cultural and economic developments. As a subset of intellectual capital, social capital is mainly a socio-cultural concept playing a strategic role in socio-economic transformations. As it bears certain tangible and intangible benefits simultaneously, it has contributed to knowledge-based economy with an emphasis on producing values and competitive advantage, hence the increased resource productivity with emphasis on sustainable development. In the social arena, it would improve the quality of life resulting in increased life satisfaction across different nations.