The effect of social capital on the effectiveness of community development programmes in Malaysia

Abstract

This study aims to determine the influence of social capital on the effectiveness of the farmer's development programme established by a MNC in Malaysia for business-community relations as part of the company's CSR endeavours. The sampling technique employed in this study was census sampling with all of the 400 respondents being included in the study. The results unveiled that the relational and cognitive dimensions were positively and significantly related to the effectiveness of the community development programme. Nevertheless, the structural dimension failed to follow similar inclinations. The finding has contributed to the social capital theory by supporting the relational and cognitive dimensions as the factors that influence the success of the community development programmes. Future study is suggested to measure the effectiveness of community development programmes using financial or non-financial aspects, utilise the stakeholder theory perspectives, as well as validate the inconsistencies in the outcomes of the past studies.