Social Capital and Entrepreneurship in Aspatial Indian Ethnic Communities

Abstract

This research contributes to an understanding of how work is done in India through an exploration of the effects of religious philosophies, cultures and value systems on management practices. The overarching research question addressed is: How do unique philosophies and traditions influence management systems and practices in India? Central to this thesis are social networks. Embeddedness and interdependence are two important considerations, where dense interactions between economic and non-economic activities provide access to inimitable resources. Embeddedness in ethnic communities leads to the formation of strategic groups, linked by ethnicities, kinship and multiplex ties. Social capital becomes available, which refers to the ability of members to access resources by virtue of their memberships in these social structures. This study shows how a reliance on religious teachings and value systems can lead to the creation of inimitable and valuable resources. How traditions and ties influence collective and independent entrepreneurship is discussed. An important theoretical contribution is the identification and prioritising of orders of social capital, and effects at each level. Contributions to theory include demonstrating the importance of quality and balance in ties, as well as the significance of cognitive anchoring. In research contributions, an Indian management framework, or chakra, is developed to conceptually capture the parameters that are relevant in the Indian context. In practice terms, the importance of the joint family structure in the Indian framework is highlighted and policy recommendations are provided.