Social capital has many potential benefits; however, according to the text, 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 is not always beneficial. For example, in firms with deep-rooted mindsets, they may continue to hire, reward, and promote like-minded people who tend to further intensify organizational inertia and erode innovation. Such homogeneity would increase over time and decrease the effectiveness of decision-making processes.

Social Capital Has Many Potential Benefits; However, According to the Text