Businesses large and small are keen to leverage Web 2.0 applications to interact with customers, suppliers and other stakeholders. Whilst some have achieved success, others are still struggling to understand the opportunities and threats associated with using Web 2.0 in business. This paper discusses the development of a conceptual framework to help businesses understand how they could leverage Web 2.0 applications to generate social capital. The proposed framework helps businesses (i) identify opportunities to leverage the strengths and features of various Web 2.0 applications, and (ii) develop business strategies for Web 2.0. As a positional paper, it contributes to theory by proposing a systematic and structured approach for understanding how social capital is created, captured, distributed, and consumed online.



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