Realizing the social capital theory through the creation of shared value

Abstract This study investigates the interplay between social capital theory and creating shared value (CSV) practices, utilizing a comprehensive approach and a robust dataset collected across two large-scale studies involving diverse samples. The research examines how CSV initiatives influence community well-being and corporate sustainability through the mediation of social capital dimensions, including municipality place attachment, local community impact, intrapersonal social capital, and collective social capital. Findings from both studies, conducted with a large and demographically representative sample, highlight local community impact as a critical driver of consumer behaviors, such as willingness to buy and pay premiums, emphasizing the importance of aligning corporate strategies with community priorities. The results further demonstrate a bidirectional relationship between CSV and social capital, fostering mutual benefits for businesses and communities. This work contributes to the discourse on sustainable development, offering practical insights for businesses seeking to integrate social and economic objectives for shared, long-term value creation.