Document Type
Article
Publication Date
12-1-2006
Abstract
This paper links social capital dynamics and value with organization destruction. It produces the finding that organizational destruction may in some cases increase the value of social capital. A key theoretical contribution of this study is extending the metaphor of social capital to encompass asset recoverability. Based upon cases studies of 15 individuals who lived through the destruction of Arthur Andersen, this paper examines the persistence and value of an individual's social capital when an organization destructs. It explores the question, "Is the value of an individual's investment in organization-specific social capital a recoverable asset post-destruction?" Interviews with Andersen alumni were used to understand the lived world of individuals who have experienced organization destruction. The destruction produced two different outcomes: individuals who moved as part of their group to a competing public accounting firm and individuals who were dispersed into industry, entrepreneurial ventures, etc. The three dimensions of social capital proposed by Nahapiet and Ghoshal (1998) structure, relationship and cognition were employed to organize the analysis. Findings suggest that three states of social capital post-destruction were possible: active, destroyed and dormant. Multiplex expressive ties were likely to persist. Social capital structure and cognition appear to have contingent effects depending upon the new setting. Closure and strong trust relations with leaders were important aspects of social capital for those individuals who moved with an intact subsegment of the office. Dispersed individuals perceived an increase in the value of their social capital.
Keywords
organizational change, social capital (sociology)
Rights
© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.
Department/Center
Design & Innovation
Recommended Citation
Sellers, R. Drew, "The Impact of Organization Destruction on Social Capital Value" (2006). Student Scholarship. 454.
https://commons.case.edu/studentworks/454