Impact of Social Capital on Organizational Innovativeness in Indian Entrepreneurial Firms

Abstract

The paper discusses the role of social capital in enhancing Organizational innovativeness in selected Indian Entrepreneurial firms. Our qualitative in-depth case studies show that both forms of social capital internal and external are important for bringing about overall organizational innovativeness that in the Product and the Market. It has been found that external social capital helps entrepreneurs in “idea generation” whereas internal social capital in “idea implementation”. Our findings indicated that the firms under study were low on radical innovativeness. However the findings also revealed that they were the high on internal and “incremental” innovations in management practices and governance structures, which in turn contributes to the overall organizational innovativeness.