Knowledge exchange through the dynamic interplay of social capital dimensions in supply chains

ABSTRACT This paper unpacks the differential effects of social capital and explores how its distinct dimensions and their dynamic interactions play out over the course of buyer-supplier interaction to influence knowledge exchange. Particular attention is directed towards the impact of cognitive social capital and the effects of shared cognition. Data are reported from a comparative case study investigation of four suppliers in the Indonesian automotive sector, using qualitative interview data collected from 131 participants. The results demonstrate that, whereas appropriate structural mechanisms and relational connections may be necessary to facilitate knowledge exchange, they are insufficient: cognitive social capital instead plays a more pivotal role in promoting knowledge exchange leading to new knowledge generation in supply chains. Practitioners need to be aware of such limitations on the efficacy of structural and relational connections alone and of the value of promoting greater cognitive connectivity between supply chain partners to promote relationship development and knowledge exchange.