Relational Capital

Description of Relational Capital. Explanation.

Definition Relational Capital. Description.

Relational Capital is a category of Intellectual Capital or Intangible Assets that is created and maintained by having, nurturing and managing good relationships with clients, suppliers, employees, governments, other stakeholders and even competitors. Elements can include the value of things as:

• The Networks that an organization is part of.

• The Strategic Alliances, Joint Ventures, Coalitions a firm has formed.

• The corporate brands, Brand Loyalty, good Brand Management.

• The Corporate Reputation.

• Goodwill, customer satisfaction, Customer Permission, client relations, Customer Loyalty.

• Relationships with government agencies and other stakeholders.

Notice that the value of relationship capital is based on both the sheer presence of certain relationships and on the capability to handle and manage the relationships well. For example, the leadership and charisma of the Chief Executive Officer, who recognizes and commits to leveraging this value category, can be a major factor in the creation of relational capital. It is also referred to as Market Capital.

Forum

Priya - India

Relational Capital and Effectiveness

"How precisely does relational capital contribute to organisational effectiveness?"

0

Suzette - Philippines

Types of Intellectual Capital

"Could you explain the 3 types of intellectual capital? "

0

Comment on this Page

Compare with: 4 Dimensions of Relational Work  |  Edvinsson’s Skandia Navigator  |  Sveiby’s Intangible Assets Monitor  |  M'Pherson's Inclusive Value Measurement  |  IC Rating  |  Tangible Assets  |  Brand Recognition  |  Customer Relationship Management  |  Social Capital  |  Customer Loyalty Program

Return to Management Hub: Communication & Skills  |  Decision-making & Valuation  |  Ethics & Responsibility  |  Finance & Investing  |  Human Resources  |  Knowledge & Intangibles  |  Leadership  |  Marketing  |  Strategy  |  Supply Chain & Quality

More on Management  |  Return to Management Dictionary  | 

End of description Relational Capital. An explanation.