Journal of Security and Sustainability Issues

The article sums up some results of the studies devoted to the socialization of the economy in the aspect of the reduction of threats to national security. The following research objectives were defined by the authors: an attempt to estimate the role of such functions of social economy as concern for public health, reduction of social and economic inequality, increase of social cohesion and trust that is most fully reflected in the phenomenon of social capital. A special place is given to the assessment of the manifested implementation of socialization of economy on the examples of Latvia and Ukraine. As arguments, the authors use both their own empirical studies and the data of national and international analytical and statistical institutions. The carried out analysis provides a clearer vision of the model of strengthening the socialization of economy in the aspect of ensuring national security with emphasis on economic security. Weak realization of the socialization of economy inevitably leads to an increase in social-economic inequality of population, when along with economic inequality other components of aggregate capital can serve the main catalyst for this negative process. For different countries at different times these components of aggregate capital are very specific. In some cases, the dominant threat is health capital, in others – the human (vocational and educational) capital. The proposed model reflects both the theory of aggregate capital as a methodology for analysis of the interconnection between social economy and security and the role of social capital as an important indicator of inequality, and, at the same time, the most important indicator of stability and security.

In last two decades, several authors have already proven the existence of positive relationship between generalized trust and macroeconomic growth and this paper queues up providing the evidence based on more recent data. An analysis of sustainability of the macroeconomic growth is also very important for prediction of economic development. However, the main aim of the paper is to analyse how the impact of trust on macroeconomic growth changes upon time, trying to find the answer how fast can changes in trust and other determinants be visible in changes in economic growth of countries. For this purpose, we introduced the dynamic aspect into the “Barro-type” regression growth models used by our predecessors. We can conclude, that trust is the most dynamic growth determinant, with the impact visible after 5 years. The paper also confirmed that the higher the initial level of GDP per capita (in terms of constancy of other variables in the model), the greater the decline in the growth rate. The high level of trust also allows better implementation of effective organizational innovation and knowledge transfer within the organization, since trust is also active through the channel of building the common good.

Network capital is a little explored phenomenon, but it is difficult to imagine the existence of man and society without networking effect. Network capital is a special type of social capital, its new branch in the e-society, the result of scientific and technical progress, in particular, the development of information and communication technologies (ICT). Network capital has a huge impact on the formation of modern society, accelerating and facilitating the development of globalization process and processes of global resource sharing and redistribution. Due to this positive influence, it blurs boundaries between global and local problems, creating new opportunities beyond the limitations of space or time, contributing to the economic development of enterprises at the local, regional and global level. Thereby becomes topical the necessity for a more efficient management of network capital, as well as the need to develop methods of its measurement and analysis. In the first part of the paper, authors examined the relevance of network capital phenomenon and generalized examples of its use in the modern e-society. In the second part of the article authors identified place of network capital in the context of aggregate capital, conducted a literature review, summarizing the main principles and concepts of network capital theory. The literature review showed that the role and possibilities of network capital development are poorly understood, a very small number of researches have been carried out on the subject and they do not present enough empirical analysis. The differences in terminology and interpretation of the phenomenon was revealed as well. In the third part of the article, authors analysed dynamics of the main ICT infrastructure indicators and indicators, which effect the development of network capital. The research helped to identify the main trends in network capital infrastructure changes over the past 10 years, as well as to ascertain the main problems and imbalances in its development. The analysis showed that between network capital and economic development of the country presents a very strong logarithmic dependence. At the end of the article authors presented conclusions on the work done. The paper is a preparatory base for further research in the field of network capital.

The present article is to examine benefits of social capital for innovation capabilities in the modern business world. First of all, the concept of social capital and its role are defined referring to a set of scientists’ interpretations on social capital and economic/ social development. This chapter allows an ingenious acknowledgement of the added-value of social capital to companies. The main patterns of innovation capabilities are revealed, followed by the methodology and research results presented. The paper emphasizes social capital as a driving factor for organizations while conducting innovations. In line with such elements of social capital as trust, social networks and norms that emerge as the driving factors within the literature review, the research, based on the Global Entrepreneurship Monitor (GEM) methodology, mainly focuses on three elements of social capital: trust, norms and networks in Lithuanian companies. The research question: how such social capital elements as trust, norms and networks help organizations to innovate sustainably.