Social capital as knowledge facilitator: Evidence from Latvia

This paper investigates knowledge acquisition through social ties. This issue has proved important in organizational studies as a mechanism of value creation. Recently, it has also been identified in regional studies as a factor behind regional development and consensus building. Policies are therefore needed to support such knowledge acquisition. The approach is based on the concepts of knowledge as a 'club good', and of social capital, where the latter is seen as a set of assets which can overcome obstacles to knowledge exchange. A taxonomy of social capital and knowledge is proposed and relationships among the considered dimensions are hypothesized. A multivariate analysis at the individual level is applied to data collected in the Republic of Latvia, including a sensitivity analysis with regard to socio-demographic dimensions. The analysis underlines the low effect of social capital on complex forms of knowledge. Results also show a strong sensitivity for socio-demographic dimensions.