5 - The Theory and Theoretical Propositions

Summary

The discussions of the structure, interaction, and action aspects of social capital described in the previous three chapters have laid the groundwork for specifying propositions to guide research. This chapter will summarize the major principles presented so far and will then present the theory's principal propositions.

The Theory of Social Capital

The theory of social capital focuses on the resources embedded in one's social network and how access to and use of such resources benefit the individual's actions. Resources are defined as valued goods in a society, however consensually determined, the possession of which maintains and promotes an individual's self-interest for survival and preservation. The values are normative judgments rendered on these goods. For most societies, they correspond to wealth, reputation, and power. The theory focuses on those actions that are taken for the purpose of either maintaining or gaining valued resources.

Resources can be either ascribed or acquired. Ascribed resources are those one is born with, such as gender and race. Other resources are prescribed by inheritance, such as caste and sometimes religion, and may include parental resources. Resources can also be acquired, such as education, or prestigious or authoritative jobs. When resources are being invested for expected returns in the marketplace, they become social capital.