This study examines the role of social capital-enhancing human resource (HR) practices in creating the context for innovativeness and adaptability in work groups. Specifically, I present a theoretical model in which social capital-enhancing HR practices foster group innovativeness and adaptability by promoting the development of group climates and external ties which provide groups with the access to knowledge and tangible resources necessary to innovate and adapt. I then present an empirical test of this model based on data collected from employees and managers in 68 work groups in the science and engineering division of a large hydroelectric power organization. Implications for research and practice are discussed.