The purpose of this paper is to understand better the organizational social capital (SC) levels and their impact on organizations by focusing on personal SC and intra-organizational SC as well as their different connections to organizational gossip and employee performance.
Participants in a field study included 617 employees from five Israeli organizations in the field of aviation and shipping. Levels of personal SC, intra-organizational SC, gossip and self-evaluated performance were measured, and connections between them detected.
The results indicate that intra-organizational SC is positively connected to employee performance, while personal SC is positively linked to gossip. Personal SC also leads to performance with the mediation of intra-organizational SC, although gossip was not found to be connected to performance.
The contributions of this study are both conceptual and practical. The distinction between organizational SC levels is refined, improving organizational research accuracy and facilitating a better grasp of the connections between SC and other variables. The scant research on organizational gossip has been expanded. From a practical perspective, clarification of the link between organizational SC and performance can be beneficial to employees and organizations.
