Effect of Social Capital on Performance of Smallholder Farmer Organizations in Western Kenya

Citation:
Wambugu S, Okello JJ, Nyikal R. "Effect of Social Capital on Performance of Smallholder Farmer Organizations in Western Kenya." Journal of Agricultural Science and Technology. 2010;4(6):10-19.

Abstract:

Development literature has recently promoted the use of producer organizations in linking farmers to better-paying
commodity markets. However, empirical studies find mixed performance of such organizations. This study examines the producer
organizations’ internal factors that may explain the differences in the performance of producer organizations. The study specifically
analyzes the role of social capital, within a producer organization, on the performance of such organization using quantitative
techniques. The level of commercialization is used as proxy of organization’s performance. The study finds that social capital
positively affects the performance of producer organizations. These findings imply that development strategies that target the
promotion commercialization of smallholder agriculture through producer organizations should pay attention to the internal factors
within such organizations.
Key words: Smallholder farmers, agricultural commercialization, social capital, performance of farmer organizations, Kenya.

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