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Director-Generals’ Human and Social Capital, and Management Performance of Farmers’ Cooperatives: Evidence from China’s Fujian


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Figure 1

Corrected model path coefficient diagram for the relationship between human capital, social capital, and performance. KHC: knowledge human capital; AHC: ability human capital; MHC: motivation human capital; ISC1: internal social capital; CSC: commercial social capital; PSC: political social capital; ISC2: innovative social capital; FP: financial performance; CP: customer-focused performance; IP: internal process performance; GP: learning and growth performance.
Corrected model path coefficient diagram for the relationship between human capital, social capital, and performance. KHC: knowledge human capital; AHC: ability human capital; MHC: motivation human capital; ISC1: internal social capital; CSC: commercial social capital; PSC: political social capital; ISC2: innovative social capital; FP: financial performance; CP: customer-focused performance; IP: internal process performance; GP: learning and growth performance.

Figure 2

Human capital, Social capital, Efficacy, and Performance (HSCEP) theoretical model.
Human capital, Social capital, Efficacy, and Performance (HSCEP) theoretical model.

Figure 3

Two-dimensional model formed from director-general’s human capital and social capital.
Two-dimensional model formed from director-general’s human capital and social capital.

Figure 4

Triangle model for professional training procedure for cooperatives’ director-generals.
Triangle model for professional training procedure for cooperatives’ director-generals.

Figure 5

The social capital enhancement pathway for director-generals based on the internal trust, Government policy support, and Business network (IGB) model.
The social capital enhancement pathway for director-generals based on the internal trust, Government policy support, and Business network (IGB) model.

Summary of the test results for mediating effect

MediatorDimensionFinancial performanceCustomer-focused performanceInternal process performanceLearning and growth performance
Resource acquisitionKnowledge human capitalNNNN
abilityAbility human capitalYNYY
Motivation human capitalYNYY
Internal social capitalYYYY
Commercial social capitalYYYY
Political social capitalYYYY
Innovative social capitalYYYY
Management abilityKnowledge human capitalNNNN
Ability human capitalYNYY
Motivation human capitalYNYY
Internal social capitalYYYY
Commercial social capitalYYYY
Political social capitalYYYY
Innovative social capitalYYYY

Summary of test results for the proposed hypotheses

No.HypothesisResult
H1aPositive correlation between knowledge human capital and financial performance×
H1bPositive correlation between knowledge human capital and customer-focused performance×
H1cPositive correlation between knowledge human capital and internal process performance×
H1dPositive correlation between knowledge human capital and learning and growth performance
H2aPositive correlation between ability human capital and financial performance
H2bPositive correlation between ability human capital and customer-focused performance×
H2cPositive correlation between ability human capital and internal process performance
H2dPositive correlation between ability human capital and learning and growth performance
H3aPositive correlation between motivation human capital and financial performance
H3bPositive correlation between motivation human capital and customer-focused performance×
H3cPositive correlation between motivation human capital and internal process performance
H3dPositive correlation between motivation human capital and learning and growth performance
H4aPositive correlation between internal social capital and financial performance
H4bPositive correlation between internal social capital and customer-focused performance
H4cPositive correlation between internal social capital and internal process performance
H4dPositive correlation between internal social capital and learning and growth performance
H5aPositive correlation between commercial social capital and financial performance
H5bPositive correlation between commercial social capital and customer-focused performance
H5cPositive correlation between commercial social capital and internal process performance
H5dPositive correlation between commercial social capital and learning and growth performance
H6aPositive correlation between political social capital and financial performance
H6bPositive correlation between political social capital and customer-focused performance
H6cPositive correlation between political social capital and internal process performance
H6dPositive correlation between political social capital and learning and growth performance
H7aPositive correlation between innovative social capital and financial performance
H7bPositive correlation between innovative social capital and customer-focused performance
H7cPositive correlation between innovative social capital and internal process performance
H7dPositive correlation between innovative social capital and learning and growth performance
H8aPositive correlation between resource acquisition ability and financial performance
H8bPositive correlation between resource acquisition ability and customer-focused performance
H8cPositive correlation between resource acquisition ability and internal process performance
H8dPositive correlation between resource acquisition ability and learning and growth performance
H9aPositive correlation between management ability and financial performance
H9bPositive correlation between management ability and customer-focused performance
H9cPositive correlation between management ability and internal process performance
H9dPositive correlation between management ability and learning and growth performance

Human capital, social capital, and performance survey items

ConstructsVariables (codes)References
Human capital KnowledgeEducation (ZSRL1)[Schultz, 1961], [Blundell et al., 1999],
Training times (ZSRL2)[Arvanitis and Loukis, 2009], [Lazear,
Agricultural skills (ZSRL3)2009], [McCallum and O’Connell, 2009]
Computer skills (ZSRL4)
Internet communication skill (ZSRL5)
AbilityWorking experiences before the farmer cooperative work (NLRL1)[Xu and Zhang, 2014]
Working years in cooperative (NLRL2)
MotivationShareholding ratio (JLRL1) Honor and reward gained (JLRL2)[Xu and Zhang, 2016]
Social capital
Internal relationsTrust between directors and supervisory board members (NBSH1)[Putnam, 1993], [Lv and Gong, 2012], [Ju, 2014]
Trust from cooperative members (NBSH2)
Networking with cooperative members (NBSH3)
Commercial relationsTrust from financial institutions (SYSH1) Networking with financial institution members (SYSH2) Networking with other cooperatives or cooperative managers (SYSH3) Networking with agricultural product wholesalers or buyers (SYSH4)[Uzzi, 1999], [Yao et al., 2016], [Adler and Kwon, 2002]
Political relationsNetworking with government departments (ZZSH1) Trust from village cadres (ZZSH2)[Faccio, 2006], [Wu et al., 2008]
Trust from government leaders (ZZSH3)
Innovative relationsNetworking with technical services/research institutes (CXSH1) Networking with social media or reporters (CXSH2)[Siomkos and Kurzbard, 1994], [Tsai and Ghoshal, 1998]
Performance
FinancialOperating income can make ends meet (CWJX1) Annual distributable surplus (CWJX2) Cooperative profit (CWJX3)[Kaplan and Norton, 1995], [Chibanda et al., 2009]
Customer-focusedMarket share (GKJX1) Increased cooperative farmer number (GKJX2) Satisfaction of cooperative members (GKJX3)
Internal processProportion of production sale (NBJX1) Proportion of production purchased and distributed (NBJX2) Technical guidance for cooperative members (NBJX3) Council meeting times (NBJX4)
Learning and growthTraining times for members (CZJX1) Members can actively offer advices (CZJX2) Brand development (CZJX3) Number of certificated brands (CZJX4)[Carlucci et al., 2004], [Liang et al., 2015]