Applications of Social Exchange, Human Capital and Dynamic Capability Theories in Management Studies: A Review

Abstract

The purpose of this theoretical article is to give insight into the application of
social exchange theory, human capital theory, and dynamic capability theory
in the discipline of management. The prepositions, purpose, advantages, and
critics related to each management-related theory were addressed. The
theoretical review result indicated that social exchange theory can contribute
more to boosting the productivity level of an organization and the satisfaction
level of the employees. However, in the process of socialization, information
security and disclosure-related issues have to be strictly followed and methods
of supervision are in place. On the other hand, human beings need attention
and focus from their respective managers. The focus of managers on the human
capital that they have can be determined as capital investment. So, human
capital investment can boost the performance of employees and the overall
productivity of the organization. Individuals who are assigned in business areas
have to know that the current highly competitive working environment needs
compatible and situational employees and contemporary management style and
approach. In this context, dynamic capability theory plays a significant
contribution to the modern highly competitive business environment. Therefore,
to win the current competitive market and to increase both the satisfaction level
of the customer and the employees, managers have to know the basic concepts
and applications of social exchange theory, human capital theory, and dynamic
capability theory as a mere factor of success.