Social capital has downsides.Which of the following is a downside?
A) High social capital may breed groupthink, that is, a tendency to question shared beliefs.
B) Socialization processes is inexpensive.
C) Individuals may become more willing to collaborate on joint projects.
D) Social capital may both breed groupthink and the socialization processes to create it (orientation, training, etc.) can be expensive.

Question

Quizplus · Accepted Answer

There are several downsides to social capital. Some firms have been adversely affected by very high levels of social capital because it may breed groupthink, a tendency not to question shared beliefs. Additionally, the socialization processes (orientation, training, etc.) can be expensive in terms of both financial resources and managerial commitment.

Social Capital Has Downsides