Integration of Social Capital and Organizational Learning Theories to Improve Operational Performance

This study focuses on integrating the premises of social capital theory and the theory of organizational learning to improve the operational performance of firms nurturing the buyer–supplier relationship. Social capital theory highlights the importance of developing social relationships between firms to create valuable resources and collectively access critical resources. Organizational learning theory highlights that the learning capacity of an organization strongly depends on top-level leaders’ behaviors, organizational structure, culture, and flexibility, and uncertainties in the environment in which the organization functions. Though many studies have focused on the impact of social capital on performance improvements in the buyer–supplier relationship, the interlinkages between social capital and organizational learning have not been given much attention. Based upon these theories, a system-focused perspective, which showcases the antecedents and outcome of the relationship between collaborative communication and learning, has been proposed in this study. A literature review has been carried out to support the linkages in the proposed conceptual model. Findings suggest that transformational buyers support creating cognitive capital with suppliers. This cognitive capital influences the structural capital, which supports improving the understanding of each party’s processes in the buyer–supplier relationship when parties have high long-term orientation. Improved learning capability reshapes organizations into flexible systems capable of responding quickly to customer requirements, and consequently, they realize a higher performance level. © 2019, Global Institute of Flexible Systems Management.