Revisiting theory of social capital: Can the internet make a difference?

In recent years, scholars of public administration have increasingly sought to understand the determinants of social trust. Thus, the current study revisits one of the oldest theories and seemingly the most controversial theory for generating social trust, that is, the theory of social capital. Although the theory contends that all voluntary associations can generate social trust by serving as a school of democracy, empirical evidence has been weak and inconsistent. Against this backdrop, this study explores a working theory that the more individuals rely on the Internet to obtain information the more the use of the Internet could substitute for the functions of associations as a school of democracy. Specifically, the Internet might serve as a hub for lowering the cost of cooperation and enhancing bridging networks. The Internet and associations interchangeably complement one another. Thus, we hypothesize that their effect on social trust is highest under the joint influence than it is under the individual influence. Panel data analysis confirms this notion because only their interaction effect is significant and positive. Additional analysis also confirms that such an effect remains, regardless of the types of association.