Microfoundations of collaborative networks: The impact of social capital formation and learning on investment risk assessment

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Authors
Rodgers, Waymond
Housel, Thomas J.
Degbey, William Y.
Arslan, Ahmad
Subjects
Microfoundations
Intangible assets
Social change
Knowledge transfer
Learning
Collaborative networks
Advisors
Date of Issue
2020-09-12
Date
12 September 2020
Publisher
Elsevier
Language
Abstract
Both traditional financial and intangible asset (IA) performance measures aid in the design of micromanagement organizational systems. We shed light on the microfoundational processes of collaborative networks and their impact on investment risk assessment by exploring IA performance measures in response to decomposing macro level constructs. The IA measures focus on the exploration of individual human capital and their actions and interactions that influence investment risk assessments, which is critical for long-term prosperity. Additionally, human capital herein includes social factors such as social capital, which research has demonstrated can be developed from intellectual capital, and vice versa. Findings from an experiment with 40 professional investors (resulting in 160 independent observations) suggested that belonging to a company's collaborative net works—where they would gain access to IA performance information—led them to adjust their investment risk assessments downward or upward in response to material weakness or strength disclosures pertaining to IA performance. Additionally, a laboratory experiment revealed that 121 novice investors who learned how to interpret and use their social networks to gain access to IA performance information also led them to adjust their investment risk assessments in response to material IA information deficiencies in target companies. The results showed IA knowledge can be learned and transferred to impact social change.
Type
Article
Description
17 USC 105 interim-entered record; under review.
The article of record as published may be found at https://doi.org/10.1016/j.techfore.2020.120295
Series/Report No
Department
Information Sciences
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Foundation for Economic Education (Liikesivistysrahasto)
Marcus Wallenberg Foundation in Finland
Foundation for Economic Education (Liikesivistysrahasto)
Marcus Wallenberg Foundation in Finland
Funder
Format
16 p.
Citation
Rodgers, Waymond, et al. "Microfoundations of collaborative networks: The impact of social capital formation and learning on investment risk assessment." Technological Forecasting and Social Change 161 (2020): 120295.
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.