Social capital and performance of farmers' groups in producer organizations in India: examining the mediating role of self-efficacy

Abstract

PurposeThis paper aims to examine the impact of social capital and self-efficacy in the performance of producer organizations. It also tests the mediating influence of self-efficacy in the relationship of social capital and performance of producer organizations.Design/methodology/approachThe study used data from a survey of 226 members of farmer producer organizations (FPO) in India. The model was tested through structural equation modeling wherein all hypotheses were tested using “R” studio.FindingsThe findings reveal that social capital and self-efficacy play a significant role in predicting the performance of FPO. It was found that in the process of social capital influencing the performance of FPO, self-efficacy plays a significant role as a partial mediator with a mediating effect of approximately 69.28%.Research limitations/implicationsThe study considered only one antecedent while identifying the reasons for perceived performance of FPOs. Hence, further studies of the various other constructs such as attitude, subjective norms, etc., may be considered.Originality/valueNo previous work has examined the mediating role of self-efficacy in the relationship between social capital and perceived performance of FPO. This study is possibly the only one that joins two streams of thought – social capital and self-efficacy – to examine the performance of FPO.

Empowering Small and Marginal Farmers: Unveiling the Potential and Addressing Obstacles of Farmer Producer Organizations in India

“…But now, there is a need to see how FPOs can go beyond their economic and commercial scope to assist poorer sections of society and affect the formation of Social Capital. In a study on 226 farmer members of a Farmer Producer Company, Pant et al [35] conclude that social capital plays a significant role in predicting the performance of FPCs.…”

Exploring the factors influencing farmer intentions and performance in South Kalimantan, Indonesia: The mediating role of self-efficacy and the moderating influence of social capital

“…Furthermore, Peng et al (2020) looked at self-ef􀅫icacy direct impact. According to (Pant et al, 2022), self-ef􀅫icacy is exempli􀅫ied in the context of contract farming as the farmer's conviction that she can improve her welfare. Widagda et al (2022) introduced the notion of self-ef􀅫icacy, which pertains to an individual's degree of con􀅫idence in accomplishing a certain task at work.…”

“…According toWidagda et al ( 2022) and Yin and Zhou (2023), people who have a high sense of self-ef􀅫icacy feel good when they face challenges in social capital and strongly believe that they can overcome these challenges. This has a big impact on how farmers are perceived to perform (Pant et al, 2022). Several studies have investigated the link between farmers' attitudes towards their profession and their perceived performance, recognizing self-ef􀅫icacy as a pivotal factor in this relationship.…”

“…Pretty distinguishes several aspects of social capital: attachment, connection, and linkage (Yin & Zhou, 2023). However, the ability of organizations to obtain materials, concepts, and knowledge from formal institutions outside of their local community is referred to as interconnecting social capital (Pant et al, 2022). Moghfeli et al (2023) underlined the signi􀅫icance of social environment for the growth of the economy and society in terms of norms, interpersonal trust, social networks, and social organizations.…”

“…perceived performance of farmers are being encouraged to establish their own businesses in Indonesia, allowing farmers to engage more effectively in 􀅫ield production and market activities (Yin & Zhou, 2023). These groups began operating under a hybrid company and cooperative model to address a variety of issues facing small and marginal farmers (Pant, Kumar, & Joshi, 2022), and it was discovered that this was a successful initiative to integrate them into contemporary supply chains for improved performance (Nybom, Hunter, Micheels, & Melin, 2021). A number of studies have also demonstrated that farmers' ef􀅫iciency, production, and performance all rise when they work together (Hayat et al, 2020;Kavin, Malarkodi, Muralidharan, Padma, & Vanitha, 2023;Marhamah et al, 2020).…”