- Volume 15 Issue 3
The social capital of an organization is recognized as the origin of the knowledge capital creation, and it becomes the mechanisms which explain the interaction of members or which accelerate the behavior of the members to attain the goal of an organization (Park, 2001; Jang et al., 2011). Lots of researches show that this causal relationship empirically exists. Social capital and knowledge capital of an organization are one of the most important competitive advantages that a company needs. They are also the main dynamic drivers of the innovation activity. This study analyzes the relationship and examines the impact and role of an organization's social capital on intellectual capital and innovation activities in an organization. In other words, the main purpose of this study is to analyze the impact of social capital on the intellectual capital and innovation activities of, in particular, China local companies. This study empirically analyzed the survey data collected from the employees of the companies located in China. Our empirical results of this study showed that social capital has significantly causal effects on intellectual capital partially and also showed the intellectual capital has significantly positive effects on the innovation activities partially.