The effect of social capital on exploration and exploitation: Modelling the moderating effect of environmental dynamism

Purpose – The purpose of this paper is to enter the debate on the antecedents of knowledge exploration and exploitation by investigating the role of social capital and environmental dynamisms. The contribution is grounded on existing insights that no empirical evidence exists on the link between social capital and exploration/exploitation behaviors. Design/methodology/approach – The model considers three social capital dimensions – structural, relational and cognitive. It also considers the moderation effect of environmental dynamism on the link between social capital and knowledge exploration and exploitation. Head physicians from Italian hospitals were surveyed using a structured questionnaire. The data set consists of 174 observations, analyzed using seemingly unrelated regression techniques. Findings – This research provides evidence of the positive effect of structural, relational and cognitive social capital on knowledge exploration and exploitation – thus adding to a literature which has thus far concentrated on contextual and structural properties. Cohesive and strong ties are instrumental to gain access to external knowledge assets and stimuli, and to recombine the knowledge available within the unit. Practical implications – The results can support hospital managers in designing initiatives that recognize the centrality of network ties for strategies of continuous improvement. Social networks represent the locus in which hospital units can identify and acquire knowledge from outside and the locus in which knowledge can be shared and recombined. Managers should encourage initiatives that support systematic connections among units. Originality/value – This research provides evidence of the positive effect of structural, relational and cognitive social capital on knowledge exploration and exploitation – thus adding to a literature which has thus far concentrated on contextual and structural properties. Cohesive and strong ties are instrumental to gain access to external knowledge assets and stimuli, and to recombine the knowledge available within the unit. The results adds to conflicting evidence on environmental dynamism –shown here to exert a direct positive impact on exploitation and exploration, as well as to moderate the link between relational and structural social capital and exploration.