“Organizations have two sources of competitive advantage. . .”

“Individuals and organizations have two sources of competitive advantage: human capital and social capital. Human capital, which includes talent, intellect, charisma, and formal authority, is necessary for success but is often beyond an individual’s direct control and is insufficient in most organizations. In contrast, social capital comes from our relationships. Robert Putnam, the Harvard political science professor who coined the term, defines social capital as the collective value of all social networks and the inclinations that arise from these networks to do things for each other. According to Putnam, we can measure social capital by the level of trust and reciprocity in a community or between individuals, and it is an essential component to building and maintaining organizations, communities, and even core, social networking sites are relationship tools that enable us to be both more aware and better able to engage with our outer networks.”