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Benefits and pitfalls of social capital for farmer cooperatives: evidence from China

Author

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  • Xu, Yining
  • Liang, Qiao
  • Huang, Zuhui

Abstract

This paper conducts an exploratory analysis on the role of social capital in influencing both economic and social performance of farmer cooperatives based on a sample of 156 farmers from 54 vegetable cooperatives in China’s Hebei and Zhejiang provinces. Social capital is distinguished into bonding and bridging dimensions, with the former referring to the internal aspect of social capital and the latter the external “Guanxi” (meaning relationship) possessed by core members. The statistical results display that specific dimensions of social capital may not deliver the benefits expected by cooperative practitioners and academics. Both positive and negative effects of social capital on performances of farmer cooperatives are observed. To be specific, bonding social capital is positively associated with common members’ economic benefits. Bridging social capital generates beneficial outcomes for the financial and social performances of cooperatives, while exhibiting negative influence on common members’ income increase because of member heterogeneity.

Suggested Citation

  • Xu, Yining & Liang, Qiao & Huang, Zuhui, 2018. "Benefits and pitfalls of social capital for farmer cooperatives: evidence from China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(8), September.
    • Handle: RePEc:ags:ifaamr:284911
    DOI: 10.22004/ag.econ.284911
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    Cited by:

    1. Liyan Yu & Jerker Nilsson, 2019. "Social Capital and Financial Capital in Chinese Cooperatives," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    2. Belay, Daniel, 2020. "Determinants of individual social capital in dairy cooperatives in West Shoa, Ethiopia," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 59(3), April.
    3. Bo Wang & Po-Yuan Cheng & Brian Lee & Lih-Chyun Sun & Hung-Hao Chang, 2019. "Does Participation in Agricultural Cooperatives Affect Farm Sustainability? Empirical Evidence from Taiwan," Sustainability, MDPI, vol. 11(18), pages 1-12, September.
    4. Yi Qu & Jing Zhang & Zhenning Wang & Xinning Ma & Guangcheng Wei & Xiangzhi Kong, 2023. "The Future of Agriculture: Obstacles and Improvement Measures for Chinese Cooperatives to Achieve Sustainable Development," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    5. Yuying Liu & Ziqi Liu & Jingzheng Liu & Ling Qiu & Yulin Wang & Xinhong Fu, 2022. "Research on the Impact of Members’ Social Capital within Agricultural Cooperatives on Their Adoption of IPM in China," IJERPH, MDPI, vol. 19(18), pages 1-12, September.
    6. Menglu Li & Shemei Zhang & Nawab Khan, 2024. "Do farmers' professional cooperatives improve agricultural technical efficiency? Evidence using a national‐level dataset of China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 363-383, June.
    7. Guangcheng Wei & Xiangzhi Kong & Yumeng Wang, 2022. "Will Joining Cooperative Promote Farmers to Replace Chemical Fertilizers with Organic Fertilizers?," IJERPH, MDPI, vol. 19(24), pages 1-14, December.
    8. Lee, Hsui-Yu & Liu, Chi-Fang & Lin, Chien-Ho, 2020. "Intellectual capital for green accounting in agribusiness," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(5), March.
    9. Karin Hakelius & Jerker Nilsson, 2020. "The Logic behind the Internal Governance of Sweden’s Largest Agricultural Cooperatives," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    10. Martinson Ankrah Twumasi & Yuansheng Jiang & Bismark Addai & Zhao Ding & Abbas Ali Chandio & Prince Fosu & Dennis Asante & Anthony Siaw & Frank Osei Danquah & Bright Asiamah Korankye & Gideon Ntim-Amo, 2021. "The Impact of Cooperative Membership on Fish Farm Households’ Income: The Case of Ghana," Sustainability, MDPI, vol. 13(3), pages 1-16, January.
    11. Yang Xu & Yujia Huo & Xiangyu Guo, 2024. "Relationship of Arable Land Scale and High-Quality Development of Farmers’ Cooperatives: Evidence from Grain Production Cooperatives in China," Sustainability, MDPI, vol. 16(6), pages 1-30, March.

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    Keywords

    Agribusiness;

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