Social Capital in the Digital Age. How to Accrue Social Capital in the Digital Era?

Seminar paper from the year 2017 in the subject Business economics - Business Management, Corporate Governance, grade: 1.0, Otto-von-Guericke-University Magdeburg (Business & Economics), course: Current Issues in Int. Management, language: English, abstract: Building and maintaining strong business relationships is highly valued by companies and can be achieved through proper use of Social Capital. Due to technological developments and the growth of social media and online networking sites, Social Capital is not only accumulated offline anymore. Moreover, the Internet established a new way of accruing Social Capital online by making use of new communication channels and thereby, enables managers to strengthen their ties within the business world. Not only business-to-business relationships but also business-to-customers relationships can be improved through Social Capital online. Not only big, well-established firms but also smaller firms and start-ups can benefit significantly from this less-costly way of building business relationships. In the following, it will be discussed how Social Capital can be accrued in the digital era and to what extend this can be beneficial to entrepreneurial firms.