Corporate Social Capital in Business Innovation Networks

This paper explores the role of corporate social capital (CSC) in business innovation. Two models are introduced; one model for CSC which broadly incorporates traditional intellectual capital (IC) elements and corporate reputation, and a second model for innovation from a networking perspective. The innovation model, called ‘the three Es’, identifies the critical central connector and broker roles within the three innovation sub-processes of exploration, engagement and exploitation. The sub-elements of CSC, being network centrality, absorptive capacity, human capital, internal capital and financial soundness are then assessed for their influence on the identified innovation roles. An analysis of the global information technology (IT) services sector is then used to illustrate the practical application of the analytical technique described.