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6 Types of Relational Capital

 , updated on November 17, 2017
Relational capital is a type of intangible asset established by a business based on its reputation and relationships with stakeholders. The following are common elements of relational capital.

Brands

Brand awareness, legacy, reputation and image. Brands can be extremely valuable as customers tend to choose products and services that they recognize and trust.

Employer Branding

A firm's reputation and identity as an employer.

Stakeholders

Relationships and reputation amongst stakeholders such as investors, communities and governments. For example, a firm that is widely respected amongst investors may enjoy a low cost of capital.

Customer Relationships

Customer relationships such as a pool of customers who pay monthly recurring fees that have high switching costs.

Partners

Connections and relationships such as a research partnership with a university or distribution partnership with a retailer.

Contacts

Formal relationships outlined in contracts such as a licensing agreement for a brand.
Overview: Relational Capital
Type
Definition
A type of intangible value established by a business based on its reputation and relationships with stakeholders.
Related Concepts

Competitive Advantage

This is the complete list of articles we have written about competitive advantage.
Absolute Advantage
Bargaining Power
Barriers To Entry
Brand
Business Cluster
Business Scale
Business Strengths
Capital
Competitive Differentiation
Competitive Parity
Competitive Pressure
Cost Advantage
Cost Innovation
Cost Strategy
Critical Mass
Customer Satisfaction
Design
Digital Maturity
Distinctive Capability
Distribution
Economic Advantage
Economies Of Density
Economies Of Scale
Economies Of Scope
Experience Economy
Information Advantage
Information Asymmetry
Know-how
Market Position
Market Power
Marketability
More With Less
Network Effect
Organizational Culture
Price Leadership
Product Development
Productivity
Relational Capital
Relative Advantage
Risk Management
Strategic Advantage
Switching Barriers
Switching Costs
Trade Secrets
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Patent Ambush

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Factors Of Production

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