Social Capital and International Business Networks: The Case of a FairTrade Organization
- *Corresponding Author:
- Geldres-Weiss VV
Department of Management and Economics
University of La Frontera, Chile
E-mail: [email protected]
Received Date: December 11, 2015; Accepted Date: April 13, 2016; Published Date: April 20, 2016
Citation: Geldres-Weiss VV, Soto MA, Ramos HR, Uribe CT (2016) Social Capital and International Business Networks: The Case of a Fair Trade Organization. J Account Mark 5:168. doi: 10.4172/2168-9601.1000168
Copyright: © 2016 Geldres-Weiss VV, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
When observing trade relationships governed by the principles of Fair Trade it becomes interesting to know how these organizations have grown and innovated to be inserted in a global market, generating international business networks for expanding their markets and products. The networks have received little consideration in Fair Trade literature. Social capital is defined as the relationships, expressed through social networks, personal contacts that individuals and organizations develop to allow them access advantages and benefits, which is an important factor to generate a competitive advantage. The objective of the research is to analyze the relationship among social capital and networks of international business in the field of fair trade, and the results of this interaction in the international performance of the organization object of study. The methodology used is qualitative exploratory. A case analysis of Chol-Chol Foundation in the Region of La Araucania in Chile was performed. The results show that the social capital developed by the organization, through the transfer of knowledge through families, belonged to the Fair Trade network and being able to rely on different national and international support networks, has allowed opening up to international markets where the increase in the number of countries, external customers and a wide range of products is remarkable. However, the organization has failed to maintain presence in the markets which puts at risk the existing networks.