The Impact of Process Approach on Social Capital

In our competitive world, increasing the organizational capital will lead to market growth. It is argued that social capital is formed by individuals'' communications; therefore, any change in the organization to improve the spirit of network formation, will lead to reinforcement of the capital. Despite its importance, we encounter an insufficient social capital in the Iranian companies. Researchers believe that the main reason for this problem is the functional approach in organizations. This paper examines the relationship between process approach and social capital. We analyzed a sample of 104 managers of the Iranian process-based companies using the Structural Equation Modeling. Based on the results, the process-based entrepreneurial organization has a stronger social capital. Also it is in a better position to take advantage of this capital in the recognition and exploitation of opportunities.