Social Capitial, Industrial Networks And Entrepreneurs

This paper attempts to develop one strand of the actors-resources-activities (ARA) model of industrial networks, namely the notion of actor bonds and interests. We argue that whereas extant research in industrial networks has privileged a techno-economic slant, it is time for exploring in more detail the interpenetration and dynamics of social structures and economic activity. Whereas most studies that explored the role of social relationships in economic life have focused on the notion of embeddedness, we make a case for focusing on the more manageable concept of social capital. Social capital provides a useful metaphor to examine social relationships in the context of the ARA model. It focuses on multi-level bonds established between individual and institutional actors, it takes seriously the notion of actor's interests, it looks at social relationships as a resource (stock) and it regards social activities as flows that maintain, enhance or depreciate social relationships as resources. We review different approaches and applications of social capital prior to employing the concept in a case study of entrepreneurial networks. The empirical study focuses on the relationships pursued by one entrepreneur in Quebec, Canada as part of a larger study involving other entrepreneurs and their relationships. We then deploy the concept of social capital to highlight the way entrepreneurs build, maintain and leverage social capital as a resource. We conclude with some considerations as to how the ARA model can be expanded by incorporating the notion of social capital.