Social capital has many potential benefits. However, some argue that social capital
A) is always beneficial to a firm.
B) may or may not be beneficial to a firm.
C) usually restricts the productivity of employees.
D) always hurts firm performance.

Question

Quizplus · Accepted Answer

Social capital, which refers to the networks, norms, and social trust that facilitate coordination and cooperation for mutual benefit, may or may not be beneficial to a firm. While it can lead to increased communication, trust, and collaboration, potentially enhancing firm performance, it can also create inefficiencies, foster groupthink, or limit diversity and innovation if not managed properly.

Social Capital Has Many Potential Benefits