Analyzing Appreciative Inquiry as a model of Change to build Relational Capital

Abstract

Relational Capital (RC) is referred as intangible asset that an organization acquires while sustaining effective relations with suppliers, customers or business partners. Prior research suggests that enhanced RC could significantly improve organizational performance. Therefore, for accentuating the role of RC in a manufacturing concern, an organizational development intervention called Appreciative Inquiry (AI) was conducted in this study. The primary objective of this action-oriented study was to develop relational capital, which was identified by respondents as one of their strengths, through the application of appreciative inquiry. The study was carried out by involving 26 participants from procurement and sales departments in 4-D cycle of AI. Post-intervention survey revealed improved RC and more friendly exchanges among stakeholders. Findings of this study would be useful to inform practitioners about the effectiveness of AI and would set new directions for appreciating the strengths of employees and other stakeholders.