The roles of cross-cultural adjustment and social capital formation in the dynamic capabilities development of multiunit organizations

There is little emphasis in the literature on the relationship between social capital and dynamic capabilities (DCs) development, and little attention has been paid to how cross-cultural adjustment and social capital affect DC development in multiunit organizations. This study used a multiunit sample of 455 to examine the roles of cross-cultural adjustment and social capital formation in DC development in multiunit organizations. The results showed that two facets of cross-cultural adjustment (i.e., general adjustment and work adjustment) are important antecedents of social capital formation among expatriate managers; moreover, social capital formation plays a pivotal and essential role in DC development in multiunit organizations. This study contributes to the literature in two important ways. First, it identifies a new central role of social capital formation in enabling DC development. Second, it shows that general adjustment and work adjustment are important antecedents to social capital formation and to DC development in multiunit organizations.