Knowledge exchange through the dynamic interplay of social capital dimensions in supply chains

ABSTRACT

This paper unpacks the differential effects of social capital and explores how its distinct dimensions and their dynamic interactions play out over the course of buyer-supplier interaction to influence knowledge exchange. Particular attention is directed towards the impact of cognitive social capital and the effects of shared cognition. Data are reported from a comparative case study investigation of four suppliers in the Indonesian automotive sector, using qualitative interview data collected from 131 participants. The results demonstrate that, whereas appropriate structural mechanisms and relational connections may be necessary to facilitate knowledge exchange, they are insufficient: cognitive social capital instead plays a more pivotal role in promoting knowledge exchange leading to new knowledge generation in supply chains. Practitioners need to be aware of such limitations on the efficacy of structural and relational connections alone and of the value of promoting greater cognitive connectivity between supply chain partners to promote relationship development and knowledge exchange.

KEYWORDS:

• Buyer-supplier relationship
• knowledge exchange
• social capital
• qualitative case study

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. Presented in the Automotive and Machinery Working Group on the EU-Indonesia Business Dialogue (EIBD) Conference, 30 November 2010

2. The interview protocol is available upon request

Additional information

Notes on contributors

Indria Handoko

Indria Handoko is a Lecturer of Organization Studies at Universitas Prasetiya Mulya, Jakarta, Indonesia. She was awarded her PhD degree from Alliance Manchester Business School, the University of Manchester, UK, in 2015. She began her career as an architect in 1994 in a large property company in Jakarta. In 1999, she started working for a leading Indonesia fast-moving-consumer-goods company. Her research interests are in organisational behaviour, organisational capability, social capital, knowledge management, innovation, supply chain, among others.

Mike Bresnen

Mike Bresnen is Professor of Organization Studies at Manchester Metropolitan University Business School, UK. He has researched and published widely on healthcare managers, the organisation and management of projects (with particular reference to the construction industry) and on learning and innovation in project-based settings. His most recent funded research has been on healthcare management and leadership; on project-based learning in construction, manufacturing and service sectors; and on biomedical innovation.

Yanuar Nugroho

Yanuar Nugroho is currently a Senior Lecturer at Driyarkara School of Philosophy, Jakarta, a Visiting Senior Fellow at ISEAS-Yusof Ishak Institute, Singapore, and an Honorary Research Fellow at Manchester Institute of Innovation Research, University of Manchester, UK. He is also a Senior Adviser to the Center for Innovation Policy and Governance and NALAR Institute, Indonesia. His research interest and publications revolve around innovation, development, sustainability, knowledge dynamics, and public policy.