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

Author

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

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.

Suggested Citation

  • Wambugu, Stella N. & Okello, Julius Juma & Nyikal, Rose Adhiambo & Bekele, Shiferaw, 2009. "Effect of Social Capital on Performance of Smallholder Producer Organizations: The Case of Groundnut Growers in Western Kenya," 2009 Conference, August 16-22, 2009, Beijing, China 51466, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51466
    DOI: 10.22004/ag.econ.51466
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    References listed on IDEAS

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    2. Okello, Julius J. & Kirui, Oliver K. & Gitonga, Zachary M. & Njiraini, Georgina W. & Nzuma, Jonathan M., 2014. "Determinants of Awareness and Use ICT-based Market Information Services in Developing-Country Agriculture: The Case of Smallholder Farmers in Kenya," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(3), pages 1-20, August.
    3. Wendong Deng & George Hendrikse & Qiao Liang, 2021. "Internal social capital and the life cycle of agricultural cooperatives," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 301-323, January.
    4. Kangogo, Daniel & Lagat, Job & Ithinji, Gicuru, 2013. "The Influence of Social Capital Dimensions on Household Participation in Micro-Credit Groups and Loan Repayment Performance in Uasin Gishu County, Kenya," MPRA Paper 48624, University Library of Munich, Germany.
    5. Wafullah, Teresah Nekesah, 2017. "Analysis Of The Use Of Inoculant-Based Technologies By Smallholder Farmers And Its Effect On Output Commercialization: Case Of Field Bean Farmers In Western Kenya," Research Theses 276457, Collaborative Masters Program in Agricultural and Applied Economics.
    6. Wafula, Teresia Nekesah & Okello, Julius Juma & Otieno, David Jakinda, 2017. "Analysis Of The Use Of Inoculant-Based Technologies By Smallholder Farmers And Its Effect On Output Commercialization: Case Of Field Bean Farmers In Western Kenya," Dissertations and Theses 269392, University of Nairobi, Department of Agricultural Economics.

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