Pilai et al. (2017) -> SC

Question 1

Give a short introduction to the paper of Pilai et al. (2017)

Answer 1

This paper is about the negative effects social capital can cause. The negative effects arise from fundamental processes of social identification.

Question 2

which theory is used to investigate ‘social capital’ in the paper of Pilai et al. (2017) and what does that theory entail?

Answer 2

the social identification theory
= social identification when someone internalizes a social identity. this entails the perception of being intertwined with a social unit (e.g. profession). It promotes self- definition and can be a facet of relational social capital.

Question 3

How does social capital dilute the dialectical process according to Pilai et al. (2017)?

Answer 3

Social capital hinders synthesis by restricting the accumulation of antithesis.

Social identification leads:

• group polarization
• proximity effects
• shared sensemaking processes
• confirmation bias

SC decreases the counterfactual perspectives -> therefore hindering the dialectical process

Question 4

What is the ‘social learning theory’?

Answer 4

Actors creat knowledge through social sensemaking & direct participation. Observing & recreating behaviors of others.

Question 5

Do members of the core or periphery learn faster according to Pilai et al. (2017)?

Answer 5

Members of the periphery learn faster . People who are new learn the mechanisms of established practices but at the same time bring fresh insights -> they are the antithesis and stimulate the dialectical process

Question 6

What is groupthink according to Pilai et al. (2017)?

Answer 6

mode of thinking when people are deeply embedded in a cohesive in-group. The striving for unanimity is stronger than their motivation to realistically judge alternative courses of action. decrease of mental efficiency, reality testing & moral judgement due to pressures from the in-group

Question 7

What are 3 factors on how social capital contributes to errors that might come with group think according to Pilai et al. (2017)?

Answer 7

3 factors that are influenced by sc lead to these errors

1) uniformity
- > sc leads to uniformity of beliefs through social identification
2) group homogeneity
- > sc leads to similarity of group members (e.g. education) decreasing functional diversity
3) polarization of group belief
- > restricts new information and ideas, biases, closemindedness, overestimation error of the group etc.

Question 8

What are the 6 negative effects of SC according Pilai et al. (2017)?

Answer 8

• inhibits individual learning
• dilutes dialectical processes
• groupthink
• postponement of structural adjustments (change threatens existing identities)
• non-rational escalation of commitment (collective social justification -> less likely to be perceived as failing)
• blurring of firms boundaries (strong identity leads to collective action, influencing resource allocation decisions wihtin the focal group -> collective decisions that are not beneficial for individuals -> unhealthy blurring of the focal firms boundaries)

Question 9

How is individual learning limited by SC according to Pilai et al. (2017)

Answer 9

According to pilai SC can inhibit individual learning -> because behavior is imitated, other behaviours are inhibited. Less exposed to other information sources etc. limiting learning opportunities.

hindered by:

• proximity effect
• homegenization
• ingroup preference etc

Question 10

which potential moderators are mentioned in the paper of Pilai et al. (2017)

Answer 10

• participative leadership -> negative effects of SC on dilution of dialectical process lower when high
• relative capabilities of the focal firm -> negative effects of sc on blurring boundaries higher when focal firm has greater relative power
• transaction specific investments -> High levels , lower the negative effects of sc on blurring boudaries & postponing structural adjustments
• environmental turbulence -> high turbulence structural changes bc pressure to survive regardless of SC