An empirical research on the relationship between human resource management and social capital of enterprise

Social capital (SC) of enterprise is defined as the capability of access to scarce resources through its credit, brand image, distribution channels and information networks etc. With 596 employee questionnaires from 42 enterprises, this paper applies stepwise regression approach to study the relationship between human resource management (FIRM) and social capital of enterprises. Results indicate that the better and more effectively HRM practices functions, the better the social network of enterprises will expand, such that FIRM of enterprises has a function of social capital appreciation. The purpose of this research is to access the relationship between enterprise human resource management and social capital. How can enterprises effectively develop and accumulate social capital? Which functions in FIRM of enterprise outweigh the others? Using stepwise regression we examine the model of FIRM and SC with data collected from 596 employees in 42 enterprises. Results indicate, that,among the five FIRM functions, the staffing system has the greatest effect on SC, and FIRM of enterprises has a function of social capital appreciation. It shows that FIRM of enterprises has a function to develop, expand and accumulate the SC of enterprises.