As conceptualized in the previous chapter, social capital is rooted in social networks and social relations and is conceived as resources embedded in a social structure that are accessed and/or mobilized in purposive actions. Thus conceived, social capital contains three components intersecting structure and action: structure (embeddedness), opportunity (accessibility through social networks), and action (use). The previous chapter has articulated the structural and opportunity aspects of social capital. This chapter will add the component of action to complete the theoretical foundation.

“It's Not Just What You Know but Who You Know”: The Microstructure of Resources

The saying “It's not just what you know but who you know” suggests that social capital should provide benefits for an individual who acts for a purpose. In this context, interaction is seen as a means to attain a goal of action. The task here is to understand how action is related to interaction and how agency is salient in the process of mobilizing social capital in a purposive action. I begin with a discussion of resources embedded in actors.

Individuals, like groups and organizations, gain and maintain valued resources to promote their well-being. They can mobilize and use such resources in purposive action to gain additional resources (see Chapter 1 for the discussion of neo-classical theories of capital). Just as important, possession of or access to resources protects and promotes an individual's standing in the social structure.