Smitha Nair

The Negative Effects of Social Capital in Organizations: A Review and Extension

Numerous studies have examined the positive effects of social capital in organizations, whereas the possible negative effects have attracted considerably less scholarly attention. To rectify this imbalance, this paper first undertakes a rigorous review of the published scholarly empirical evidence pertaining to the negative effects of social capital in organizations through a search of Web of Knowledge and Scopus, and then enumerates six potentially negative effects arising from increased levels of social capital. The review focuses on negative effects arising from bonding social capital and those arising from dense networks and closure, advancing new theory to elucidate the generative mechanisms that give rise to the proposed negative effects. Finally, the authors identify potential moderators of the negative effects thus theorized. Using the lens of social identification theory, the authors argue that dysfunctional identification processes restrict the processing of information and stimulate over-commitment to established relationships, diluting in turn the dialectical process, and inhibiting individual learning within organizations, culminating in groupthink, the postponement of structural adjustments, the non-rational escalation of commitment, and the blurring of firms’ boundaries. This review thus furthers the agenda of a more balanced inquiry into the effects of social capital in organizations.

Do parent units benefit from reverse knowledge transfer

Emerging market multinationals resort to knowledge acquisitions from their overseas subsidiaries to springboard and realise their global ambitions. Drawing from the knowledge-based view and social capital perspective, this study explores the effects of organisational collaboration and tacitness on multiple dimensions of reverse knowledge transfer (RKT). Data were collected through a survey, from senior and middle level managers of parent Indian multinationals, pertaining to RKT from their overseas subsidiaries. The hypotheses are analysed using PLS modelling. The results demonstrate positive effects between the extent and benefits of RKT. Collaboration was found to have a positive influence on both dimensions of RKT. Tacitness also has a positive impact on the benefits from RKT. The implications of the findings and the limitations of the study are discussed along with suggestions for future research.

Innovativeness of Indian firms - catalysts and deterrents

Innovation is the driving force that is crucial for firms to sustain their competitive advantage and for economies and industries in general to surge forward. In comparison to developing economies, developed economies have always maintained greater focus on national innovation systems while the firms from these economies have been investing considerable effort on promoting organisational innovation. As firms became increasingly global, consumers across the world, especially from the emerging economies, are getting a taste of more sophisticated products and services. There was also an infusion of knowledge pertaining to cutting-edge technologies, innovation, processes and management systems into this part of the world. However, studies on organisational innovation have largely been confined to firms from developed economies in order to understand the effects of its determinants (Anderson et al., 2004; Choi and Williams, 2014; Li et al., 2013). Given the differences in the socio-cultural milieu between the developed and emerging economies, more nuanced understanding of the factors affecting and the processes associated with innovation in emerging markets is required.

Indian multinationals: location choices of overseas mergers and acquisitions

This chapter examines location choices of overseas mergers and acquisitions of Indian multinationals