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

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

International Journal of Management and Economics
Volume 54 (2018): Issue 2 (June 2018)
By: Bin Liu and  Zhongbin Li  
Open Access
|Jun 2018

Figures & Tables

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.

Figure 2

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.

Figure 4

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.

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]
DOI: https://doi.org/10.2478/ijme-2018-0014 | Journal eISSN: 2543-5361 | Journal ISSN: 2299-9701
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Language: English
Page range: 149 - 165
Submitted on: May 5, 2018
|
Accepted on: Jun 28, 2018
|
Published on: Jun 29, 2018
Published by: Warsaw School of Economics
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year
Keywords:
Farmer cooperatives,
Director-general,
Human capital,
Social capital,
Operational performance
Related subjects:
Business and economics,
Political economics,
Economic theory, systems and structures,
Business management,
Management accounting, financial controlling, cost calculation, investment

© 2018 Bin Liu, Zhongbin Li, published by Warsaw School of Economics
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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