The Relationship between Social Capital and the Market Integration of Farms – Examples from Central and Eastern Europe

Sebastian Stępień; Katarzyna Smędzik-Ambroży; Marta Guth; Jan Polcyn

doi:10.18778/1508-2008.28.04

Authors

Sebastian Stępień Poznan University of Economics and Business, Poznan, Poland https://orcid.org/0000-0001-9475-8418
Katarzyna Smędzik-Ambroży Poznan University of Economics and Business, Poznan, Poland https://orcid.org/0000-0001-5228-2263
Marta Guth Poznan University of Economics and Business, Poznan, Poland https://orcid.org/0000-0001-9332-1193
Jan Polcyn Stanislaw Staszic State University of Applied Sciences in Pila, Pila, Poland https://orcid.org/0000-0001-7847-2743

DOI:

https://doi.org/10.18778/1508-2008.28.04

Keywords:

market integration, social capital, agriculture, farms, Central and Eastern European countries

Abstract

The economic situation of farms is determined by a number of factors, which have been widely described in the literature. One factor is market integration, which shapes the farmer’s position in the food supply chain. The involvement of farmers in the integration may be related to their social capital, although this hypothesis has not been fully verified. Thus, the aim of the article is to assess the relationship between the level of social capital and the market integration of farms in selected Central and Eastern European (CEE) countries. The analysis includes Poland, Romania, Lithuania, Serbia and Moldova, and the sample consists of a total of 3160 farms. Data were collected personally by the authors through face-to-face interviews with farm managers. Based on these data, the authors’ market integration index was calculated and the level of social capital of farms was determined. A comparative analysis of average market integration indices for farms with different degrees of social capital was then carried out separately for each country. The Mann-Whitney U-test and the Kruskal-Wallis test were used to determine the significance of differences. The findings reveal that the highest value of the market integration was recorded for those farmers who were most strongly ‘socialised’, i.e. who participated in long-life education, took part in social events and were members of various organisations. A very important implication of this is that by strengthening social capital, farms aim to strengthen integration into the market, which can consequently lead to improved economic performance.

Therefore, mitigating regional disparities and increasing the average level of agricultural performance in CEE countries should include measures to increase social capital on farms, i.e. providing workshops, training, and exhibitions, as well as supporting agricultural producer organizations, promoting rural housewives’ circles, and organising social events, among others. Such activities can be financed both from the second pillar of the common agricultural policy and from local government budgets. The contribution of the research focuses on the rarely undertaken subject matter of the relationship between social capital and market integration in farms. The added value consists of 1) a comparative analysis of five CEE countries and 2) an estimation of the authors’ indicators of social capital and market integration of farms, which could be used in the future for similar research.

Downloads

References

Adler, P.S., Kwon, S.W. (2002), Social Capital: Prospects for a New Concept, “Academy of Management Review”, 27 (1), pp. 17–40.
Google Scholar DOI: https://doi.org/10.2307/4134367

Bardos, K., Ferto, I., Szabo, G. (2003), The effect of transaction costs on the structure of total supply chain in Hungarian beef sector. Third Annual Workshop – Economics of Contracts in Agriculture, The Royal Agricultural and Veterinary University, Copenhagen.
Google Scholar

Bieniek-Majka, M. (2019), Collective action theory of Mancur Olson on the example of integrated fruit and vegetable producers, “Proceedings of the 2019 International Scientific Conference’ Economic Sciences for Agribusiness and Rural Economy”, 3, pp. 46–51, https://doi.org/10.22630/ESARE.2019.3.5
Google Scholar DOI: https://doi.org/10.22630/ESARE.2019.3.5

Bourdieu, P. (1986), The forms of capital, [in:] J. Richardson (ed.), Handbook of Theory and Research for the Sociology of Education, Greenwood, Westport, pp. 241–258.
Google Scholar

Bourdieu, P., Wacquant, L.P.D. (1992), An Invitation to Reflexive Sociology, University of Chicago Press, Chicago.
Google Scholar

Cecchi, C., Basile, E. (2007), Public Action and Social Capital in Rural Areas, “Management of Natural Resources, Sustainable Development and Ecological Hazards”, 99, pp. 137–146, https://doi.org/10.2495/RAV060141
Google Scholar DOI: https://doi.org/10.2495/RAV060141

Chorób, R. (2022), Innovative integration relations opportunity for development of Polish agribusiness and increase competitiveness of the economy, “Nierówności Społeczne a Wzrost Gospodarczy”, 50 (2), pp. 349–356, https://doi.org/10.15584/nsawg.2017.2.22
Google Scholar DOI: https://doi.org/10.15584/nsawg.2017.2.22

Coleman, J.S. (1988), Social Capital in the Creation of Human Capital, “American Journal of Sociology”, 94, pp. 95–120, https://doi.org/10.1086/228943
Google Scholar DOI: https://doi.org/10.1086/228943

Czyżewski, A., Stępień, S. (2018), Discovering economics in the EU’s common agricultural policy. Recommendations for the new period 2021–2026, [in:] J. Gołębiewski (ed.), Proceedings of the 2018 International Scientific Conference “Economic Sciences for Agribusiness and Rural Economy”, 1, SGGW Publishing House, Warsaw, pp. 154–161, https://doi.org/10.22630/ESARE.2018.1.21
Google Scholar DOI: https://doi.org/10.22630/ESARE.2018.1.21

Davidova, S. (2014), Small and Semi-subsistence Farms in the EU: Significance and Development Paths, “EuroChoices”, 13 (1), pp. 5–9, https://doi.org/10.1111/1746-692X.12043
Google Scholar DOI: https://doi.org/10.1111/1746-692X.12043

De los Ríos, I., Rivera, M., García, C. (2016), Redefining rural prosperity through social learning in the cooperative sector: 25 years of experience from organic agriculture in Spain, “Land Use Policy”, 54, pp. 85–94, https://doi.org/10.1016/j.landusepol.2016.02.009
Google Scholar DOI: https://doi.org/10.1016/j.landusepol.2016.02.009

Denkowska, S. (2007), Testowanie wielokrotne w badaniach ekonomicznych, „Folia Oeconomica Cracoviensia”, XLVIII, pp. 119–135.
Google Scholar

Droždz, J., Vitunskienė, V., Novickytė, L. (2021), Profile of the Small-Scale Farms Willing to Cooperate – Evidence from Lithuania, “Agriculture”, 11 (11), 1071, https://doi.org/10.3390/agriculture11111071
Google Scholar DOI: https://doi.org/10.3390/agriculture11111071

Eurostat (2023), Farms and farmland in the European Union – statistics, https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Farms_and_farmland_in_the_European_Union_-_statistics (accessed: 10.01.2024).
Google Scholar

Eurostat (2024), Database, https://ec.europa.eu/eurostat/data/database (accessed: 3.01.2024).
Google Scholar

FADN (2018), Farm sustainability data network, https://ec.europa.eu/info/food-farming-fisheries/farming/facts-and-figures/farms-farming-and-innovation/structures-and-economics/economics/fadn_en (accessed: 15.12.2024).
Google Scholar

Farkas, T. (2021), The Role of the Social Capital in Rural Development. Case Study Analysis of Village Research Camps in Romania and Hungary, “European Countryside”, 13 (3), pp. 584–598, https://doi.org/10.2478/euco-2021-0033
Google Scholar DOI: https://doi.org/10.2478/euco-2021-0033

fi-compass (2020), Financial needs in the agriculture and agri-food sectors in Lithuania. Study report, European Commission – European Investment Bank, Brussels–Luxembourg.
Google Scholar

Fukuyama, F. (2003), Kapitał społeczny, [in:] L.E. Harrison, S.P. Huntington (eds.), Kultura ma znaczenie, Zysk i S-ka, Poznań, pp. 169–187.
Google Scholar

Gajowiak, M. (2013), Deficyt kapitału społecznego na popegeerowskich obszarach jako bariera zrównoważonego rozwoju polskiej wsi, “Folia Pomeranae Universitatis Technologiae Stetinensis. Oeconomica”, 299 (70), 7179.
Google Scholar

Galluzzo, N. (2015), Technical and economic efficiency analysis on Italian smallholder family farms using Farm accountancy data network dataset, “Studies in Agricultural Economics”, 117 (1), pp. 35–42.
Google Scholar DOI: https://doi.org/10.7896/j.1501

Georgescu, I.L. (2016), Social capital formation in Romanian agriculture, “Scientific Papers Series Management, Economic Engineering in Agriculture & Rural Development”, 16 (2), pp. 147–156.
Google Scholar

Glatz, C., Bodi-Fernandez, O. (2020), Individual social capital and subjective well-being in urban- and rural Austrian areas, “Osterreichische Zeitschrift Fuer Soziologie”, 45, pp. 139–163, https://doi.org/10.1007/s11614-020-00399-9
Google Scholar DOI: https://doi.org/10.1007/s11614-020-00399-9

Gruchelski, M., Niemczyk, J. (2016), Małe gospodarstwa rolne w Polsce a paradygmat rozwoju zrównoważonego, “Postępy Techniki Przetwórstwa Spożywczego”, 2, pp. 134–140.
Google Scholar

Guinjoan, E., Badia, A., Tulla, A.F. (2016), The new paradigm of rural development. Theoretical considerations and reconceptualization using the ‘rural web’, “Boletín de la Asociación de Geógrafos Españoles”, 71, pp. 495–500.
Google Scholar

Guth, M., Bieniek-Majka, M., Maican, S. (2019), Market adjustments of fruit and vegetable producers to changing distribution channels in selected European Union countries after 2012, “Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu”, XXI (3), pp. 134–142, https://doi.org/10.5604/01.3001.0013.3063
Google Scholar DOI: https://doi.org/10.5604/01.3001.0013.3063

Guzdek, S., Petryk, A. (2016), Cooperation of agricultural producers in Poland, “Geomatics, Landmanagement and Landscape”, 4, pp. 89–100, https://doi.org/10.15576/GLL/2016.4.89
Google Scholar DOI: https://doi.org/10.15576/GLL/2016.4.89

Jarosz-Angowska, A., Angowski, M., Kijek, T. (2015), The creation of social capital in rural areas in the Lubelskie region, 7th International Scientific Conference “Rural Development. Bioeconomy challenges”, Aleksandras Stulginskis University, Kaunas, https://doi.org/10.15544/RD.2015.098
Google Scholar DOI: https://doi.org/10.15544/RD.2015.098

Jones, N., Malesios, C., Iosifides, T., Sophoulis, C.M. (2008), Social Capital in Greece: Measurement and Comparative Perspectives, “South European Society and Politics”, 13 (2), pp. 175–193, https://doi.org/10.1080/13608740802156687
Google Scholar DOI: https://doi.org/10.1080/13608740802156687

Karlsson, C., Stough, R. (eds.) (2012), Entrepreneurship, Social Capital and Governance: Directions for the Sustainable Development and Competitiveness of Regions, Edward Elgar Publishing, Cheltenham, https://doi.org/10.4337/9781781002841
Google Scholar DOI: https://doi.org/10.4337/9781781002841

Kloczko-Gajewska, A. (2015), Social capital in rural development programmes in Poland and Lithuania, 7th International Scientific Conference “Rural Development 2015: Towards the Transfer of Knowledge, Innovations and Social Progress”, 6, https://doi.org/10.15544/RD.2015.090
Google Scholar DOI: https://doi.org/10.15544/RD.2015.090

Knack, S., Keefer, P. (1997), Does Social Capital Have an Economic Payoff? A Cross-Country Investigation, “Quarterly Journal of Economics”, 112 (4), pp. 1251–1288, https://doi.org/10.1162/003355300555475
Google Scholar DOI: https://doi.org/10.1162/003355300555475

Knickel, K., Maréchal, A. (2018), Stimulating the social and environmental benefits of agriculture and forestry: An EU-based comparative analysis, “Land Use Policy”, 73, pp. 320–330, https://doi.org/10.1016/j.landusepol.2017.12.064
Google Scholar DOI: https://doi.org/10.1016/j.landusepol.2017.12.064

Kuzior, A., Kwilinski, A. (2022), Cognitive Technologies and Artificial Intelligence in Social Perception, “Management Systems in Production Engineering”, 30 (2), pp. 109–115, https://doi.org/10.2478/mspe-2022-0014
Google Scholar DOI: https://doi.org/10.2478/mspe-2022-0014

Kwilinski, A., Lyulyov, O., Pimonenko, T. (2023), Spillover Effects of Green Finance on Attaining Sustainable Development: Spatial Durbin Model, “Computation”, 11 (10), 199, https://doi.org/10.3390/computation11100199
Google Scholar DOI: https://doi.org/10.3390/computation11100199

Kwilinski, A., Pajak, K., Halachenko, O., Vasylchak, S., Pushak, Y., Kuzior, P. (2019), Marketing tools for improving enterprise performance in the context of social and economic security of the state: innovative approaches to assessment, “Marketing and Management of Innovations”, 1, pp. 172–181.
Google Scholar DOI: https://doi.org/10.21272/mmi.2019.4-14

Lazega, E., Burt, R.S. (1995), Structural Holes – The Social-Structure of Competition, “Revue française de sociologie”, 36 (4), pp. 779–781.
Google Scholar DOI: https://doi.org/10.2307/3322456

Lowder, S.K., Skoet, J., Raney, T., (2016), The Number, Size, and Distribution of Farms, Smallholder Farms, and Family Farms Worldwide, “World Development”, 87, pp. 16–29, https://doi.org/10.1016/j.worlddev.2015.10.041
Google Scholar DOI: https://doi.org/10.1016/j.worlddev.2015.10.041

Michalewska-Pawlak, M. (2010), Możliwości i bariery rozwoju kapitału społecznego na obszarach wiejskich w Polsce, [in:] M. Klimowicz, W. Bokajło (eds.), Kapitał społeczny. Interpretacje, impresje, operacjonalizacja, CeDeWu, Warszawa, pp. 185–202.
Google Scholar

Midgley, J. (2013), Social development: Theory and practice, Sage, Thousand Oaks.
Google Scholar DOI: https://doi.org/10.4135/9781446294987

Mikulcak, F., Haider, J.L., Abson, D.J., Newig, J., Fischer, J. (2015), Applying a capitals approach to understand rural development traps: A case study from post-socialist Romania, “Land Use Policy”, 43, pp. 248–258, https://doi.org/10.1016/j.landusepol.2014.10.024
Google Scholar DOI: https://doi.org/10.1016/j.landusepol.2014.10.024

Münchhausen, S. von, Knickel, K., (2010), Rural development dynamics: a comparison of changes in rural web configurations in six European countries, Uitgeverij Van Gorcum, Assen.
Google Scholar

Nahapiet, J., Ghoshal, S. (1998), Social Capital, Intellectual Capital, and the Organizational Advantage, “Academy of Management Review”, 23 (2), pp. 242–266, https://doi.org/10.5465/amr.1998.533225
Google Scholar DOI: https://doi.org/10.2307/259373

Nasalski, Z. (2019), Economic integration as a factor of competitiveness of entities using land from the Agricultural Property Stock of the Treasury in the Warmian-Masurian voivodship, “Annals PAAAE”, XXI (4), pp. 341–349, https://doi.org/10.5604/01.3001.0013.5444
Google Scholar DOI: https://doi.org/10.5604/01.3001.0013.5444

National Bureau of Statistics of the Republic of Moldova (2024), https://statistica.gov.md/en (accessed: 3.01.2024).
Google Scholar

Ostrom, E. (2000), Crowding out Citizenship, “Scandinavian Political Studies”, 23 (1), pp. 3–16, https://doi.org/10.1111/1467-9477.00028
Google Scholar DOI: https://doi.org/10.1111/1467-9477.00028

Perepeczko, B. (2006), Zmiany w rolnictwie a stan więzi lokalnych na wsi, “Wieś i Rolnictwo”, 4 (133), pp. 28–41.
Google Scholar

Phillips, M. (2015), Assets and Affect in the Study of Social Capital in Rural Communities, “Sociologia Ruralis”, 56 (2), pp. 220–247, https://doi.org/10.1111/soru.12085
Google Scholar DOI: https://doi.org/10.1111/soru.12085

Piwek, L., Joinson, A. (2016), “What do they snapchat about?” Patterns of use in time-limited instant messaging service, “Computers in Human Behavior”, 54, pp. 358–367, https://doi.org/10.1016/j.chb.2015.08.026
Google Scholar DOI: https://doi.org/10.1016/j.chb.2015.08.026

Ploeg, J.D. van der, Marsden, T., (2008), Unfolding webs. The dynamics of regional rural development, Royal Van Gorcum, Assen.
Google Scholar

Portes, A., Landolt, P. (2000), Social Capital: Promise and Pitfalls of its Role in Development, “Journal of Latin American Studies”, 32 (2), pp. 529–547, https://doi.org/10.1017/S0022216X00005836
Google Scholar DOI: https://doi.org/10.1017/S0022216X00005836

Putnam, R.D. (2001), Social Capital: Measurement and Consequences, “Isuma: Canadian Journal of Policy Research”, 2, pp. 41–51.
Google Scholar

Putnam, R.D. (2011), “Bowling Alone: America’s Declining Social Capital” Journal of Democracy (1995), [in:] R.T. Legates, F. Stout (eds.), City Reader, Routledge, London, chapter 9.
Google Scholar

Rivera, M., Knickel, K., Díaz-Puente, J.M., Afonso, A. (2018), The Role of Social Capital in Agricultural and Rural Development: Lessons Learnt from Case Studies in Seven Countries, “Sociologia Ruralis”, 59 (1), pp. 66–91, https://doi.org/10.1111/soru.12218
Google Scholar DOI: https://doi.org/10.1111/soru.12218

Rivera, M., Knickel, K., Rios, I. de los, Ashkenazy, A., Qvist Pears, D., Chebach, T., Šūmane, S. (2018), Rethinking the connections between agricultural change and rural prosperity: A discussion of insights derived from case studies in seven countries, “Journal of Rural Studies”, 59, pp. 242–251, https://doi.org/10.1016/j.jrurstud.2017.07.006
Google Scholar DOI: https://doi.org/10.1016/j.jrurstud.2017.07.006

Scuderi, R., Tesoriere, G., Fasone, V., Pedrini, G. (2023), Social capital, poverty alleviation and complexity in Africa. Evidence from rural areas, “Journal of Economic Studies”, 50 (4), pp. 806–820, https://doi.org/10.1108/JES-03-2022-0177
Google Scholar DOI: https://doi.org/10.1108/JES-03-2022-0177

Simsek, A.S. (2023), The power and type I error of Wilcoxon-Mann-Whitney, Welch’s t, and student’s t tests for Likert-type data, “International Journal of Assessment Tools in Education”, 10 (1), pp. 114–128, https://doi.org/10.21449/ijate.1183622
Google Scholar DOI: https://doi.org/10.21449/ijate.1183622

Skorbiansky, S.R., Camp, K.M. (2021), Proceed with Caution: Social Capital Measurement, “Journal of Economic Issues”, 55 (3), pp. 779–796, https://doi.org/10.1080/00213624.2021.1948267
Google Scholar DOI: https://doi.org/10.1080/00213624.2021.1948267

Smędzik-Ambroży, K., Sapa, A. (2021), The role of small farms in creating social capital in rural areas – case study from Lithuania, Poland and Romania, “Annals of the Polish Association of Agricultural and Agribusiness Economist”, XXIV (1), pp. 255–267, https://doi.org/10.5604/01.3001.0015.7104
Google Scholar DOI: https://doi.org/10.5604/01.3001.0015.7104

Spychalski, G. (2013), Wybrane charakterystyki kapitału społecznego polskich rolników, “Journal of Agribusiness and Rural Development”, 4 (30), pp. 231–241.
Google Scholar

Statistical Office of the Republic of Serbia (2024), https://www.stat.gov.rs/en-US/ (accessed: 3.01.2024).
Google Scholar

Stępień, S. (2024), Dane dotyczące związków integracji rynkowej gospodarstw rolnych i kapitału społecznego, https://doi.org/10.18150/RFEHAO
Google Scholar

Stępień, S., Maican, S. (eds.) (2020), Small Farms in the Paradigm of Sustainable Development. Case Studies of Selected Central and Eastern European Countries, Adam Marszałek Publishing House, Toruń, https://doi.org/10.15804/Stepien.Maican-8.2020
Google Scholar DOI: https://doi.org/10.15804/Stepien.Maican-8.2020

Stępień, S., Polcyn, J. (2021), Market integration as a determinant of agricultural prices and economic results of small-scale family farms, “Proceedings of the 2021 International Conference ‘Economic Science for Rural Development’”, Jelgava, 11–14 May, pp. 515–524, http://polcyn.pl/publikacje/68b/68.pdf (accessed: 3.01.2024).
Google Scholar

Stępień, S., Smędzik-Ambroży, K., Guth, M., Muntean, A., Maican, S., Pastiu, C. (2022), The importance and determinants of market integration of small family farms in selected countries of Central and Eastern Europe, “Economic Research – Ekonomska Istraživanja”, 35 (1), pp. 5757–5776, https://doi.org/10.1080/1331677X.2022.2037445
Google Scholar DOI: https://doi.org/10.1080/1331677X.2022.2037445

Trigkas, M., Partalidou, M., Lazaridou, D. (2021), Trust and Other Historical Proxies of Social Capital: Do They Matter in Promoting Social Entrepreneurship in Greek Rural Areas?, “Journal of Social Entrepreneurship”, 12 (3), pp. 338–357, https://doi.org/10.1080/19420676.2020.1718741
Google Scholar DOI: https://doi.org/10.1080/19420676.2020.1718741

Wojewódzka-Wiewiórska, A. (2015), Structural dimension of social capital in Poland. Urban versus rural areas, 7th International Scientific Conference “Rural Development 2015: Towards the Transfer of Knowledge, Innovations and Social Progress”, 6, https://doi.org/10.15544/RD.2015.126
Google Scholar DOI: https://doi.org/10.15544/RD.2015.126

Wyrzykowska, B. (2004), Rodzaje powiązań integracyjnych w agrobiznesie, „Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego: Ekonomika i Organizacja Gospodarki Żywnościowej”, 53, pp. 57–76.
Google Scholar DOI: https://doi.org/10.22630/EIOGZ.2004.53.14