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The Application of Social
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The Application of Social Capital in modern Economy
...... As you can see these three facets of human capital play various roles as it relates to productivity and economic benefits. It is evident that human capital can have a profound impact on the success or failure of a firm on an industry. The research also indicates that individual-specific human capital is the most significant in terms of innovation and productivity because it encompasses a broad range of skills and knowledge. Now that we have garnered a greater understanding of human capital, let us discuss social capital and the manner in which the two theories differ
Social Capital
Although human capital and social capital are related theories they have different definitions and a slightly different impact on the economy. According to Field (2003) social capital simply asserts that relationships matter. The author further explains that the relationships created in the context of social capital allow individuals to work collectively to achieve goals that could not be achieved individually or would be extremely difficult for the individual to accomplish alone. The author also asserts that
People connect through a series of networks and they tend to share common values with other members of these networks; to the extent that these
or
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