School Papers

In significant impact on organizational performance, and higher

In assessing the functions of social capital within Ghanaian organizations, Ofori & Sackey (2010) has How social capital contributes to firm performance by using a sample frame of companies listed in the Ghana Club, it has been determined how many different patterns within the organization contributes to firm performance. Overall, 116 organizations were sampled, considering the status of the respondents remained at the supervisor level. Study majorly underpin three main objectives; Measure the level of social capital within Ghanaian organizations that they use social relations as an input into their actions for the purpose of assessing the impact, to assess the contribution of social capital for firm performance, to describe patterns and social determinants within and around the firms. Organizational performance factors like achieving organizational goals and achieving successful work performance measured considering the size (company turnover), profitability (returns on equity) and growth (growth rates) of particular firms. Study found that social capital has a significant impact on organizational performance, and higher social capital in organizations will attain more firm productivity than organizations with less social capital. Ofori & Sackey (2010) also aimed at examining the determinants of social capital and how it affects organizational performance where trust, social ties, reciprocity, density of personal contacts, diversity of contacts and institutional toes has been considered as the determinants. All these determinants showed a significant positive impact on social capital. Based on the study .Ofori & Sackey (2010) suggest that social capital is important for sharing knowledge in the Ghanaian organization; That it helps in working and helps in achieving organizational objectives .In conclusion it has also been suggested that the three defined variables of social capital: reciprocity, trust and institutional relations have the most important positive relationship with organizational performance.Finally, they recommend that companies take an active approach towards promoting, creating and maintaining a viable social network in their framework will gain maximum of benefits.