ABSTRACT
Social capital has many benefits, and the concept has been applied to individual, group, organizational, community and world levels (Portes, 1998; Woolcock & Narayan, 2000). Individuals cultivate relationships with various parties in order to get advancement in their careers. Organizations seek to enhance productivity and innovation with teamwork. Organizations also engage in strategic alliances and joint ventures for reasons such as cost minimization, market expansion, and joint development of new products/services. Furthermore, claims have been made that social capital can help to advance economic development at the world level. However, social capital has liabilities as well. Therefore, this paper dwells on the downside of social capital in order to shed light on how management can be improved.
