Social Capital and IT as predicates of Collective Mindfulness and Business Risk Mitigation: A Grounded Theory Development

This study explores the idea that an organization’s internal social capital may underpin its corporate risk mitigation dynamic. We examine factors such as standard work routines, dense personal networks and shared understandings existing within the organization as antecedent to two specific aspects of Collective Mindfulness, being Commitment to Resilience and Deference to Expertise. We further examine the role played by the information systems platform deployed by the firm in amplifying these dynamics. We then examine the impact of these two aspects of collective mindfulness on the Risk Mitigation efforts essayed by employees vis-à-vis both the marketing and the operational functions of the firm. All these dynamics are explored using grounded theory methodology and the case study approach, based on interview data collected at a global commercial receivables management firm. Finally, managerial implications and future avenues of research flowing from insights presented in this paper are discussed.