The idea of researching social capital in firms and organizations is relatively new. "Social capital theorists have long argued that personal relationships provide people with labor market opportunities. Conventional wisdom suggest that by relying on personal contacts with friends, relatives, and acquaintances, workers are able to find employment that might not be readily accessible through more formal job search channels, such as reading the want ads or applying directly to employers" (McDonald, & Elder, p.521). Social capital has been defined, "as the aggregate of resources embedded within, available through, and derived from the network of relationships possessed by an individual or organization" (Inkpen, & Tsang, p. 150). Another definition states that, "social capital refers to the actual and potential resources individuals obtain from knowing others, being part of a social network with them, or merely from being known to them and having a good reputation" (Baron, & Markman, p.107).
"The findings show that social capital matters very little early in the work career. However, during mid-career, people with the greatest social resources are more likely to get their jobs without searching, and non-searchers tend to receive better jobs than formal job seekers. These payoffs mainly accrue to male non-searchers who have a great deal of work experience. Women with a great deal of work experience are much less likely than men to get their jobs without searching. And, when these highly experienced women get their jobs without searching, they do not receive the same payoffs that men receive. However, women's deficit in social capital seems the more likely culprit. Women tend to have fewe ...