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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
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    File URL: http://purl.umn.edu/51466
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    References listed on IDEAS

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    1. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, January.
    2. Kherallah, Mylène & Kirsten, Johann, 2001. "The new institutional economics," MTID discussion papers 41, International Food Policy Research Institute (IFPRI).
    3. World Bank, 2003. "Reaching the Rural Poor : A Renewed Strategy for Rural Development," World Bank Publications, The World Bank, number 14084.
    4. 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.
    5. 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, May.
    6. Jonathan Kydd & Andrew Dorward & Jamie Morrison & Georg Cadisch, 2004. "Agricultural development and pro-poor economic growth in sub-Saharan Africa: potential and policy," Oxford Development Studies, Taylor & Francis Journals, vol. 32(1), pages 37-57.
    7. 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).
      • 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).
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    Cited by:

    1. Akinlade, Roseline J. & Balogun, Olubunmi L. & Obisesan, Adekemi A., 2013. "Commercialization of Urban Farming: The Case of Vegetable Farmers in Southwest Nigeria," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161639, African Association of Agricultural Economists (AAAE).

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