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Abstract

Most Chief Executive Officers (CEOs) agree that Strategic Capital represents an organization’s capacity to formulate successful plans and execute appropriate strategies by leveraging a broad spectrum of employees' cognitive frameworks, knowledge, ideas, and perceptions. These elements must be integrated into sound human interactions that foster the development of Organizational Social Capital. Building upon this profound and interconnected concept, the current article examines Peter Smith’s work, "Enhancing Strategic Capital," published in the Handbook of Business Strategy (September 2006). The article discusses the holistic approach to employee inclusion as a core organizational belief and a critical dimension of successful strategic planning. Just as individuals often rely on trusted inner circles for personal decisions—ranging from simple purchases like a book to complex investments like a home or a car—the Knowledge Economy similarly relies on networks of trusted, supportive relationships to achieve social synergy across all fields, enabling business organizations to provide distinguished services. In this context, the ultimate driver of successful outcomes is not merely "what you know" (Human Capital) or even "who you know" (Relational Capital), but rather "who you know well enough to trust" for vital advice or efficient collaboration; this is the essence of Social Capital. Consequently, the Knowing-Doing Gap Strategy is often designed and executed within executive "war rooms" as CEOs strive to maintain organizational momentum, aligned with the reality of "who thinks what." Furthermore, organizations must maintain a clear vision of their internal and external relational networks, identifying informal Opinion Leaders and understanding their patterns of influence—both positive and negative—as these are decisive factors for optimal strategy implementation. It is worth noting that while such dynamics may be potent during the formulation of strategic plans, they can often become ineffective or obsolete during the actual launch or execution phase.

DOI

10.33095/jeas.v13i48.1234

Subject Area

Managerial

First Page

373

Last Page

380

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