Data driven analysis of social capital in Farmer Producer Companies

The Farmer Producer Company (FPC), a subset of the Farmer Producer Organization (FPO), is an important institutional form designed to organize farmer groups towards better coordinated farming and marketing. In the Indian context, as FPCs have emerged as new forms of members-led agribusiness, their ability to identify prevailing social ties and tap them effectively towards business growth needs to be better understood. Although social capital is studied broadly for its potential to drive organizational performance, it has been poorly researched in farmer collectives such as FPCs. The current work examines the effect of social capital on benefits and business performance at the level of member groups in FPCs. An empirical analysis was conducted in which two FPCs, which differed significantly in their mobilization strategies, farming methods, and supply chain linkages, were surveyed. Data collected from the surveys were visualized and clustering analysis was carried out using Self Organizing Maps (SOM), an unsupervised Artificial Neural Network (ANN) tool. Insights from clustering reveal the importance of pre-existing social ties, leadership, participation in group activities and the geographical affinity of groups in benefits realization and business performance of FPCs. The importance of bottom-up approaches in establishing robust supply chain linkages in emerging FPCs was keyed out through this work. The inferences through SOM, distilled strategies for FPCs' stakeholders in prioritizing interventions for member groups and in generating broader implications for policy makers accounting social capital in new institutional models.