Human or Social Resources Management: Which Conditions Force HR Departments to Select the Right Employees for Organizational Social Capital?

Abstract

This study examines in which cases organizations tend to form social capital, and explores how such attitude affects their recruitment strategies. This countrywide research project covering 158 firms located in 18 different cities was conducted to understand and to identify the variables which increase organizations' tendency to form social capital. A mixed methodological approach was adopted to reveal relationships between variables. The results show that dependency to state and suppliers, environmental uncertainty, rate of tenured staff in organizations, ownership status, conduct of HR activities by other departments or units and educational level of HR staff increase organizations' tendency to form social capital. Besides, it was found that organizational age, outsourcing of HR activities and centralized HR departments are negatively associated with social capital.