The influence of structural social capital on livelihood outcomes of rural smallholder farmers in Tanzania: the moderating effect of risk-taking behavior

Abstract

This study examines how structural social capital – bonding, bridging, and linking, affects rural smallholder farmers’ livelihood outcomes, considering the moderating effect of risk-taking behavior. Guided by social capital theory and the sustainable livelihood framework, the study positions Agricultural Marketing Cooperative Societies (AMCOS) as instrumental platforms for mobilizing resources and institutional support. An explanatory sequential mixed-methods approach was employed, collecting data from 391 AMCOS members in the Singida region through structured questionnaires, focus group discussions, and interviews. Quantitative data were analyzed using partial least square structural equation modelling (PLS-SEM), while qualitative data were analyzed through content analysis. Findings indicate that bonding, bridging and linking social capital significantly and positively influence farmers’ livelihood outcomes, with linking social capital showing the strongest effect. Moreover, risk-taking behavior positively moderates the relationship between bridging and linking social capital and livelihood outcomes, unlike bonding. This suggests that farmer’s willingness to take risk is better positioned to leverage institutional connectedness and support, enhancing their livelihoods. The study recommends promoting structured social networks alongside risk-taking behaviors to improve rural livelihoods. It advances social capital theory by integrating a behavioral dimension and offers practical insights for policymakers and stakeholders to strengthen livelihood outcomes through social capital and risk orientation.