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¹Nottingham University Business School, University of Nottingham, Nottingham, UK

Correspondence to: K Starkey, Management and Organisational Learning, Nottingham University Business School, Jubilee Campus, Wollaton Road, Nottingham NG8 1BB, UK. Tel: +44 (0) 115 951 5260; Fax: +44 (0) 115 846 6667; E-mail: kenneth.starkey@nottingham.ac.uk

This paper argues that social capital is an under-examined but central contributing factor to effective strategic management. In an economy where capitalizing upon knowledge is becoming more important, social capital provides the basis for firms to leverage their existing knowledge resources, and to renew and refresh their knowledge base. We suggest that context is a crucial factor in developing our understanding of how social capital does or does not manifest itself. We argue that the context for much current strategic thinking is a growing 'Americanization'. We suggest that the current variant of the American system of management is characterized by values and practices - unrestrained pursuit of self-interest, market fundamentalism, minimal state, low taxation - that are at odds with the development of social capital and explore the implications of the social capital argument for European strategic management.

European Management Review (2004) 1, 78-83, advance online publication, 5 March 2004 doi:10.1057/palgrave.emr.1500007

strategy; social capital; knowledge; Americanization; European