Social capital is essential in the success of alliances between universities and firms, both types of social capital (cognitive and rational based on case study) play a different yet important role. During an alliance, there might be tension that arises due to many reasons. One of these tensions is that firms concentrate on short-term goals while universities focus on long-term goals. For the alliance to be successful, the tensions need to be mitigated to allow for a type of relationship that accommodates the interest of both parties. Alliances between firms and universities are important because they lead to increase innovation and learning opportunities. University-industry collaborations help both parties, when two form an alliance, the discoveries made and technology developed through the findings is present to both of them. Students in universities acquire sufficient knowledge because the university is well equipped with resources and information. The firm also benefits because of the advancements made that help increase the market value.
Social capital types are important in such alliances because they outline the basic things firms have to look at when they decide to form an alliance: shared goals and culture. The first step for the firm and universities is to look at whether they have shared goals and a shared organizational culture. If these exist, then it will be easier for them to work together, but if differences exist, they need to find a way of resolving these issues. One of the strategies that can help is good communication, both can communicate with each other and find common ground on how the relationship will work. The interests of both parties have to be considered, and the results have to be winning for both. The bottom line is that the firm and universities have to be actively involved in the process, they have to show understanding toward each other and find a way to be successful in this alliance. When both are involved and show such understanding, it is easier to develop a shared culture and goals.
Another critical point to note is that both types of social capital have to exist at all levels, individual, organization, and alliance. Mutual understanding starts at an individual level; if there are people who agree with the decisions made and others do not, the alliance may fail. The alliance may be between the firm and universities, but in fact between people who work for both of them. These people have to be in sync, meaning that they have to agree on the proposed culture and goals the alliance is working towards. Finally, cognitive social capital start at the firm level before moving to the alliance level and finally to the individual level. Social capital is important because it helps the participants in the alliance to form a shared culture and shared goals through understanding and involvement, thereby allying success.
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Relational social capital helps organizations to realize how close relations between the participants of both parties can reduce collaborative challenges. The participants of both parties can be people who have known each other before, or people who have worked together or studied together, or people who got acquainted together through social interactions. These close relations make it easier for both parties to communicate with each other and to make decisions that favor both parties. It also makes it easier for organizations to trust each other. Without trust, the firm and universities will push for their interest without considering those of the other participants in the alliance.
Relational social capital also shows how important building trust is between the organizations in the alliance. There are many ways of building trust, one of them being involvement. During the decision-making process, both parties have to be included, both of them have their opinion, and together they can make a decision that favors both of them. If one of them is more dominant than the other and so implements its own culture and makes decisions without involving the other, one will become frustrated and eventually withdraw from the alliance. The one being left out will feel less important and feel like the other party is only using them to benefit itself. Involving each other build trust, both the firm and universities have to share information and expertise. Also, both of them need to be willing to learn from each other and keep an open mind to the procedures and ideas laid out by the other party.
In conclusion, social capital is very important in the university-industry alliance. Both types, cognitive and relational, examine how organizations can mitigate tensions to create a successful alliance. Some of the suggestions offered include understanding and involvement; understanding the differences between both will lead to the formation of a middle ground through communication. Involvement in the operations makes it easier to resolve these differences. Also, creating a strong relationship full of trust between the two organizations helps overcome the challenges. It can be created through open communications, existing relationships, involvement, and willingness to learn from each other.
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