The Mediating Effects of Capability Development on the Relationships Between Social Capital and the Effectiveness of Community Development Programme among Farmers in Malaysia

Abstract

Capability development can be defined as creating new competencies or enhancing current ones using available resources. This research investigates mediating effects of capability development (opportunity, innovation, and knowledge sharing) in influencing the relationship between social capital (structural, relational, and cognitive) and the success of community development projects in Malaysia. Hence, a total of 140 Malaysian farmers were selected as respondents due to their low income status and they were required to participate in Corporate Social Responsibility (CSR) initiatives based on the concept of Creating Shared Value (CSV). The respondents then evaluated the CSR programme whether it impacts their wellbeing based on their perceptions. The data were analysed by using PLS-SEM. The finding shows the importance of opportunity and information sharing in modulating the relationship between relational and community development programme efficacy. Future research will be beneficial particularly in addressing the knowledge gap in CSR's business–community ties.