Social capital has many potential benefits.However,according to the text,social capital _________.
A) is always beneficial to a firm
B) usually restricts the productivity of employees
C) may or may not be beneficial to a firm
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