Value Creation Beyond Economic Frontiers Via Social Capital Benefits: Evidence of SMEs in The UK Construction Industry

Network engagement in the form of social capital can produce benefits that could create value; however, previous management literature has mostly been focused on the economic perspective whilst placing less interest on other types of value. This article places particular attention on the structural dimension of social capital and the creation of non-economic value through the proposition of three aims. First, to determine whether firms’ relationship amongst professional and/or informal networks can create different types of value. Second, whether SC benefits can create non-economic value for firms, and third, whether the lack of engagement in professional networks limit the creation of non-economic value for firms. This study adopts a qualitative exploratory approach through the application of 41 semi-structured interviews to small and medium-sized firms in the UK construction industry. Findings in this study expand SC theory and benefits presented in management literature to conclude that SC benefits create diverse types of non-economic value for firms engaging in professional and/or informal networks whilst arguing that those firms lacking professional network engagement limit the creation of non-economic value in their firms.