Hierarchy of Effects of Social Capital

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Creation of desired social outcome is very critical for the success of any publically funded social project, especially since it involves spending large amounts of public money. This creation of social outcome is influenced by the creation of intangible form capital, namely social capital. This research study explains the hierarchy of effects in formation of three different types of social capital—bonding, bridging, and linking capital—and their effects on creation of social outcome. By analyzing data gathered from beneficiaries of 110 funded water supply projects in India, it was found that bonding and bridging types of social capital significantly influence creation of social outcomes. Bridging capital mediates the relationship between bonding capital and linking capital. Bridging capital also mediates the relationship between bonding capital and social outcome.