African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4094

Full Length Research Paper

The downside of organizational social capital in group knowledge creation: A study of Chinese high-tech organizations

  Meng-Yu Cheng1* and Jar-Der Luo2    
  1Department of Business Administration, Feng Chia University, Taiwan. 2Department of Sociology, Tsinghua University, Beijing, China.  
Email: [email protected]

  •  Accepted: 16 August 2011
  •  Published: 30 November 2011



This paper develops a measurement of organizational social capital by using three constructs - general trust, density of trust network and network structures. In the empirical testing of 67 separate groups, general trust had a very significant impact on group knowledge creation, while dense trust network had only indirect influence on a group’s performance. One of the downsides of organizational social capital (OSC), fragmented structure caused by ganging-up, produced negative effects on general trust, and indirectly influenced knowledge creation, too. On the other hand, the other downside of OSC, the structure of power concentration, is not evidenced to be harmful for knowledge sharing and brainstorming.


Key words: Organizational social capital, network structure, group knowledge creation, trust, Chinese organizations.