Lucy Wairimu Kibe, PhD Finalist

Jomo Kenyatta University of Agriculture and Technology.

Prof. G. S Namusonge, PhD

Jomo Kenyatta University of Agriculture and Technology.

DR. Iravo M. A, .PhD

Jomo Kenyatta University of Agriculture and Technology.

CITATION: Kibe L.W, Namusonge G.S (PhD) & Iravo M.A (PhD) (February, 2016), Effect of relational social capital on the performance of social enterprises in Nairobi city county, Kenya: International Journal of Economics & Finance VOLUME 2 (II), 87-101. ISSN 2105 6008.


The scale of current economic and social change, the process of globalization, the rapid transition to a knowledge-based society are all challenges, which demand a new approach to organizational recourses existing in that enterprise in a form of capital. In recent years, traditionally there were three main types of capital, which together constituted the basis for economic development and performance such as natural, physical and human capitals. But nowadays, scholars have started to understand that those capitals can only partly determine the process of economic growth. That is why they started to talk about relational social capital as a missing link in the development of economic life. The concept of relational social capital has been widely used by academics from different scientific backgrounds. Economists, political scientists and sociologists agree that thisconception is ambiguous and has many different connotations. For this reason it is very difficult to create one appropriate definition of relational social capital. Relational social capital builds and maintains networks, which are underpinned by the norms of behavior. On the other hand, emphasizes that relational social capital is the goodwill that is engendered by the fabric of social relations and that can be mobilized to facilitate an action. So, according to those definitions, scholars have realized that relational social capital has a big impact on economic outcomes and enterprise activities.

Keywords: relational social capital, structural dimension, cognitive dimension, relational dimension, relational social capital, social, enterprise’s business processes&Performance.

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