Corporate Social Capital and Performance of Certified Small Tea Producer Organizations in Kenya

Abstract

The aim of this study was to investigate the relationship among fairtrade practices, corporate social capital, market innovation, and the financial performance of certified small producer organizations in emerging economies, with a focus on data from Kenya in East Africa. Specifically, the study aimed to explore how corporate social capital affects the financial performance of FT-certified small tea producer organizations. The research employed a descriptive cross-sectional design, gathering primary data through semi-structured questionnaires from 67 small tea producer organizations affiliated with the Kenya Tea Development Agency (KTDA). These organizations operate in 17 counties where tea cultivation occurs; collectively serving 560,000 smallholders in Kenya. Data analysis encompassed both descriptive and inferential statistics. The findings indicated a significant influence of corporate social capital on the financial performance of certified tea producer organizations, highlighting a notable association between these variables. This study contributes to theory, policy, and practice by enhancing our understanding of the relationship between performance and corporate social capital in the context of small tea producer organizations.

Keywords: corporate social capital, organization performance, Kenya