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PDF
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Type:
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Conference Paper |
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Author:
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Johnson, Nancy; Suarez, Ruth; Lundy, Mark |
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Conference:
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Workshop on Methods for Studying Collective Action, the Program for Collective Action and Property Rights (CAPRi) |
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Location:
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Nyeri, Kenya |
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Conf. Date:
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Feb. 25-Mar. 1 |
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Date:
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2002 |
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URI:
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https://hdl.handle.net/10535/7660
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Sector:
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Agriculture
Social Organization |
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Region:
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South America |
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Subject(s):
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social capital
rural development
agriculture
collective action
networks
trust
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Abstract:
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"This paper analyzes social capital in the context of rural agroenterprises. Qualitative and quantitative methods are combined to characterize and measure the contribution of social capital to the performance of a sample of 50 agroenterprises in Colombia. Social capital is hypothesized to fulfill three functions in firms: provide access information via networks of contacts; reduce transactions costs in contracting via trust; and sustain capacity for collective action. Qualitative analysis documents examples of each of these functions in the context of the 50 businesses. Categorical indices of levels of social capital use are developed, and patterns within and among firms are analyzed. Information networks are the most common function of social capital, however in general use of the three functions of social capital are highly correlated. To estimate social capital’s contribution to firm structure and performance, quantitative measures of firmlevel demand for social capital are identified based on the number and strength of relationships that a firm maintains. These relationship variables correlate with the functional indicators developed in the qualitative analysis. Econometric analysis finds high returns associated with strength rather than number of relationships. Both quantity and quality of the relationships are important for the firm’s bottom line."
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