Effectual Entrepreneurship Theory of Social Capital: Implications for Biotech and Health Care Management

The third industrial revolution, combining globalization with the Internet, produces major social and environmental challenges. Social capital, using social connections and relations to tackle the challenges, becomes a vital goal and asset of organizations of all kinds in the 21st century. This paper provides the knowledge foundations for social capital in two aspects: (1) social capital as a science of effectual entrepreneurship; and (2) social capital as a historical science of effectual entrepreneurship. Both aspects are grounded in a recent entrepreneurship theory of effectuation. Managerial implications for practitioners in biotech and health care management are discussed.