engleski

Driving the value premium through cultural, symbolic, economic and social capital management

This research merges literature in sociology with business to provide an understanding how to manage price premium through managing plerithora of capitals: economic (accumulated financial resources and assets), social (resources, which are controlled on the basis of existing and potential social networks), symbolic (the resources available to an entity on the basis of honor, prestige and/or recognition, resulting from investments of time, energy and wealth into activities which do not yield a short-term economic return for the entity) and cultural (cultural traits of one individual entity in terms of embodied, objectified and institutionalized cultural capital) which together define a social space. Value premium is defined as the extent to which key stakeholder group perceives an entity is entitled to above-average reward for its outputs. Our research contributes existing literature in several ways. First, we relate sociological ideas of different forms of capital to the ideas of price premium that can be charged. Second, we distinguish between the ideas of capital and reputation both empirically and theoretically. Third, we develop measures for different forms of capital based on their theoretical definitions. Lastly, we provide and test a mechanism through which different forms of capital impact the expected price premium. We propose a model using a mediating mechanism taking the manageable categories (capitals) thorough stakeholder perceptions back to the expected price premium. Results indicate the greatest importance of cultural capital, followed by economic and symbolic capital. Social capital has important influence but only through its convertibility into other forms of capital. Cultural, symbolic and social capital impact value premium only indirectly, through entity charisma (defined as a trait characterized by extreme charm and a “magnetic” quality of personality and/or appearance along with innate and powerfully sophisticated communicability and persuasiveness), trust (rational choice that an actor has intentions and competences to behave in a certain manner and arises from signals creating an indirect expectation of trustworthy behavior) and reputation (stakeholders’ perceptions of an entity’s current and potential performance on dimensions that can be observed by stakeholders based on the quality and innovativeness of observable output as well as the entity’s capability to persistently provide such output.). Economic capital is the only form of capital which, besides indirect effect, has a direct impact on value premium. Model exhibits high explanatory power for all the variables. Future research should analyze the mechanisms of conversion from one form of Bourdieu’s capital into another. In addition, understanding antecedents and moderators that enhance or diminish the conversion ability represent another important area of inquiry. Future research can contribute a lot by providing an understanding of network effects. In that sense, it could answer the question of how different forms of capital can be converted and/or built upon by different entities simultaneously (i.e. cooperative capital management). Another possible venue for further research lies in introducing more dynamics into the model by analyzing how for a particular entity this model changes across its life cycle.

cultural capital; reputation capital; symbolic capital; social capital

nije evidentirano