Real world Social Networks hold Social Capital for people in that network. With Social Networking going Online I wonder whether the Social Capital holds any relevance or value. In other words is "social" part of social networking just a misnomer? Is Social Networking just an advanced version of online communication tool rather than really enhancing what is considered Social Capital?
I recently did a short survey with friends and colleagues in my network and found the Social Networks are primarily working as communication tools. Social Networks and Social Capital as studied by Sociologists -- are subjects with much more substance than just communication and playing online scrabble. For example see this early paper "Social Capital in the Creation of Human Capital" (PDF) by late James Coleman (Univ of Chicago) in The American Journal of Sociology. (Its a 1980s paper)
James Coleman in this paper has explained Social Capital while comparing it with Physical, Financial & Human Capital. (Interestingly as we look at Capital from Physical to Human it moves from Tangible to Intangible. Social Capital actually doesnt reside in an individual or a "thing". It resides in "relationships". )
Coleman has also explained 4 properties of Social Capital:
- Obligations and Expectations (dependent on trustworthiness of social environment)
- Information-flow capability of Social Structures
- Norms with Sanctions
- Public Goods Nature of Social Capital
Coleman has explained that unlike Physical & Financial Capital that exist as entities -- Social Capital is not an independent entity. It exists -- embedded within relationships and social structures that “enable” its formation. That is without an organization or relationship Social Capital does not exist – it’s a function of these two. Social Capital does not exist in actors (like Human Capital) or in physical tools of production.
One example Coleman has given in his paper is of Diamond Traders in NY City. (I assume its dated). They give each other entire bags of stones for examining without keeping any guarantees or worrying about cheating by the other person (replacement of fakes, stealing etc).
He explains that this “trust” enables Business. In this sense Trust as Social Capital takes place of complex financial mechanisms of insurance devices etc.
The reason such “trust” exists is because most diamond traders in NY City are Jewish, with a high degree of intermarriages, living in Brooklyn, and going to same synagogue. The closed community provides the “insurance”. Any member trying to cheat will lose family, religious, and community “ties” i.e. Social Capital is embedded in all these ties.
Coming back to my original question - How do Social Networking sites contribute to Social Capital Enhancement -- if we consider this paper by Coleman? I can see that Information Flow capability is enhanced. You might find better jobs or get Q&A through your network on LinkedIn. But have you see other more stronger aspects of Social Capital formation via Online Social Networks? Are there "Norms & Sanctions in place" beyond netiquett or are there "Obligations and Expectations" in Online Social Networks? Somehow I have started to feel that there is much less "social" in Social Networks than made out by people. What do you think?
