In your book, you discuss the challenges that volatility can place on organizations. Explain how high social capital can counter its negative effects. Let's look at the software industry as an example. Silicon Valley companies lure bright young software designers away from one another with the bait of higher salaries and juicier stock options. Today's hot new product may be hotter tomorrow, or forgotten.
Some firms double or triple in size in months and are swallowed by one of the technology giants.
Fortunes are made and lost. Job hopping is expected and seen as part of the creative ferment of the region. The typical annual turnover rate is over 20 percent. But now consider SAS Institute, the world's largest privately held software company. Its turnover rate is below 4 percent.