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.