Social capital and farmer-group institutional performance: The mediating role of member participation in Ponorogo Regency
DOI:
https://doi.org/10.35334/pbv1aq08Keywords:
Agricultural institutions, Farmer groups, Institutional performance, Member participation, Social capital, Structural equation modelingAbstract
Farmer groups are socio-economic institutions that can strengthen farmers' capacities, access to resources, and collective bargaining power, yet their performance often varies despite receiving similar material support. This study examined the direct effect of social capital on the institutional performance of rice farmer groups and the indirect effect transmitted through member participation in Ponorogo Regency, East Java, Indonesia. A quantitative explanatory design was applied to survey data from 80 active rice farmers selected by proportionate random sampling in Babadan, Kauman, and Balong sub-districts. The relationships among social capital, member participation, and institutional performance were estimated using partial least squares structural equation modeling. The measurement model met the prescribed reliability and convergent-validity criteria. The structural model explained 69.0% of the variance in institutional performance. Social capital had positive effects on member participation (beta = 0.781, p = 0.001) and institutional performance (beta = 0.312, p = 0.012), while member participation positively affected institutional performance (beta = 0.521, p = 0.003). The indirect effect of social capital through participation was also significant (beta = 0.407, p = 0.005), indicating partial mediation. Strengthening trust, communication, shared norms, and opportunities for meaningful participation can therefore improve the effectiveness and sustainability of farmer-group institutions.
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