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The Evolution of Capital Theory: A Critique of a Theory of Social Capital and Implications for HRD

University of Minnesota

The concept of capital has evolved over time. This article describes the change from capital as classically defined to neocapital, a term that more accurately describes the intangible components of capital. One component of neocapital, social capital, is increasingly being viewed as integral to organizational success. However, theories (and their resulting concepts and operational definitions) of social capital remain underdeveloped and fragmented in specific disciplines (e.g., sociology, psychology, social psychology, political economy). Building on the historical foundation of economic, political science, and management literature, this article reviews and critiques a new theory of social capital and explores possible implications for the field of human resource development. Lin’s theory, although appropriately categorized as a middle range theory, offers human resource development scholars and practitioners a new way of organizing and conceptualizing the connections between social relationships and individual and organizational performance.

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