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The network effects of NGOs on social capital and innovation among smallholder farmers: a case study in Peru

Author

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  • Dominik Hartmann

    (University of Hohenheim
    Fraunhofer Center for International Management and Knowledge Economy (IMW)
    University of São Paulo)

  • Atilio Arata

    (Center for Studies and Promotion of Development (DESCO))

  • Mayra Bezerra

    (Fraunhofer Center for International Management and Knowledge Economy (IMW))

  • Flavio L. Pinheiro

    (Universidade Nova de Lisboa)

Abstract

The impact of non-government organizations (NGOs) on the local development of rural areas has rarely been explored empirically. Here, we employ methods from network science to evaluate the impact of an NGO’s activities on the social capital and innovation of three Peruvian farming communities between 2003 and 2018. Data were collected from in-depth interviews with farmers, including information about the farmers’ socioeconomic characteristics, types of interactions with the NGO, and innovations in processes, products, marketing, and organization. Our findings show that the NGO had a significant impact on the local social cohesion and innovation performance of the farmers. The NGO helped to connect farmers from different villages, provided access to external knowledge, and facilitated the establishment of a local productive organization. Yet, the NGO also changed the local power structure by becoming the most central agent in the local innovation system. The NGO’s centrality declined, though, at later stages of the development project as local agents took over the role of the NGO. Moreover, econometric results show that having a link with the NGO is associated with a significantly more central role of the farmers in the local network. However, only close cooperation with the NGO, such as membership in the local productive organization or active participation in technical training workshops, was associated with a significantly higher innovation performance. Finally, our study demonstrates that methods from network science can help to empirically evaluate and monitor the effects of NGOs on local development at different stages of their development interventions.

Suggested Citation

  • Dominik Hartmann & Atilio Arata & Mayra Bezerra & Flavio L. Pinheiro, 2023. "The network effects of NGOs on social capital and innovation among smallholder farmers: a case study in Peru," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(3), pages 633-658, June.
  • Handle: RePEc:spr:anresc:v:70:y:2023:i:3:d:10.1007_s00168-019-00944-9
    DOI: 10.1007/s00168-019-00944-9
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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