Publication Type

Journal Article

Publication Date

10-2012

Abstract

The importance of an actor’s network to his/her private benefits is well explored. Less well understood are the positive externalities of social capital, that is whether an actor’s social capital “spills-over” and improves the outcomes of those to whom s/he is connected, creating broader, not just private, benefits. This paper examines how investment bankers add value to one another in the course of everyday work. Our concern is with a banker’s second-order social capital. The main question is whether being connected to a broker matters to the ability of the focal actor to add value to those around him/her. We argue and find that connecting to brokers matters contingent upon the broker being more senior than the focal actor. The networks of contacts who are of higher rank and/or the focal actor’s leader positively contribute to the ability of the focal actor to add value. Second-order social capital does matter, contingent on the contacts: senior brokers.

Keywords

network analysis, social capital theory, theoretical perspectives, leadership theories

Discipline

Finance and Financial Management | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Academy of Management Journal

Volume

55

Issue

5

First Page

1213

Last Page

1231

ISSN

0001-4273

Identifier

10.5465/amj.2010.0827

Publisher

Academy of Management

Additional URL

http://dx.doi.org/10.5465/amj.2010.0827

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