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Effect of Social Capital on Performance of Smallholder Producer Organizations: The Case of Groundnut Growers in Western Kenya

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  • Wambugu, Stella N.
  • Okello, Julius Juma
  • Nyikal, Rose Adhiambo
  • Bekele, Shiferaw
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    Abstract

    Development literature has recently promoted the use of producer organization in linking farmers to better-paying commodity markets. However, empirical studies find mixed performance of such organizations. This study examines the producer organization’s internal factors that may explain the differences in the performance of producer organizations. It specifically analyzes the role of social capital in a producer organization on the performance of such organization using quantitative techniques. As hypothesized, this study finds that social capital positively affects the performance of producer organizations. The implication of these findings is that development strategies that target commercialization of smallholder agriculture through producer organizations must pay attention to the internal factors within such organizations.

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    File URL: http://purl.umn.edu/51466
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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51466.

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    Date of creation: 2009
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    Handle: RePEc:ags:iaae09:51466

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    Related research

    Keywords: smallholder farmers; agricultural commercialization; social capital; performance of producer organizations; Kenya; Institutional and Behavioral Economics;

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    1. Andrew Dorward & Nigel Poole & Jamie Morrison & Jonathan Kydd & Ian Urey, 2003. "Markets, Institutions and Technology: Missing Links in Livelihoods Analysis," Development Policy Review, Overseas Development Institute, vol. 21, pages 319-332, 05.
    2. World Bank, 2003. "Reaching the Rural Poor : A Renewed Strategy for Rural Development," World Bank Publications, The World Bank, number 14084, October.
    3. Kydd, Jonathan & Dorward, Andrew & Morrison, Jamie & Cadisch, Georg, 2002. "Agricultural Development And Pro Poor Economic Growth In Sub Saharan Africa: Potential And Policy," ADU Working Papers 10920, Imperial College at Wye, Department of Agricultural Sciences.
    4. Kherallah, Mylène & Kirsten, Johann, 2001. "The new institutional economics," MSSD discussion papers 41, International Food Policy Research Institute (IFPRI).
    5. Kherallah, Mylène & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas. & Johnson, Michael., 2000. "The road half traveled," Food policy reports 10, International Food Policy Research Institute (IFPRI).
      • Kherallah, Mylène & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas & Johnson, Michael, 2000. "The road half traveled," Issue briefs 2, International Food Policy Research Institute (IFPRI).
    6. Bingen, Jim & Serrano, Alex & Howard, Julie, 2003. "Linking farmers to markets: different approaches to human capital development," Food Policy, Elsevier, vol. 28(4), pages 405-419, August.
    7. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, December.
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