Charles Kadushin on "Too Much Investment in Social Capital"

After a conversation with Charles Kadushin, I just read the pre-print of his Too Much Investment in Social Capital?.

In this piece, he reviews a number of prominent books related to the topic of social capital. It is a good introductory piece to the topic (albeit written in somewhat academic language).

In the most interesting section (to me), he writes:

One of the troubling foundations of social capital theory is its use of the investment
analogue to economic capital theory. The idea of investment is in turn tied to motivations
to engage in social capital accumulation or to participate in passing it on.
To what extent can the cultivation of networked resources be considered a deliberate
investment analogous to put aside profits from current production to be used in the development
of future production capabilities?

He writes that, “Actual demonstrations of the effectiveness of investment strategies in social capital are
rare.” Within the academic literature, I agree with him. However, within the experiences of entrepreneurs, salespeople, and other practitioners I know, most of them actively and strategically manage their social networks, and can report significant success from that strategy. In fact, that is the theme of our book.