The Multidimensional Effect of Social Capital on Livelihood Success: Evidence from Members in Community-Based Organizations in Sri Lanka

Abstract

Social capital is increasingly recognized as a crucial factor supporting sustainable development, yet its comprehensive impact on livelihood success, particularly within the context of members in community-based organizations (CBOs) in developing nations, particularly in Sri Lanka, requires deeper investigation. This study addresses this gap by investigating the multidimensional effect of social capital encompassing structural, relational, and cognitive dimensions on the livelihood success of CBO members within the Sabaragamuwa Province, Sri Lanka. Using convergent parallel mixed-methods design, quantitative data was collected from a representative sample of 1150 CBO members using a validated structured questionnaire, subsequently analyzed via Partial Least Squares Structural Equation Modeling (PLS-SEM). Complementary qualitative data was gathered through in-depth interviews with 10 members, selected purposively, and analyzed using thematic analysis. Quantitative findings reveal that all three composite dimensions structural, relational, and cognitive demonstrate a positive and statistically significant influence on livelihood success. Notably, relational social capital demonstrated the strongest impact, with a large effect size. Qualitative findings further explained these statistical relationships, revealing key mechanisms through which CBOs leverage social capital. These findings generate actionable implications, suggesting CBOs should strategically prioritize relationship-building activities and foster participatory environments, while policymakers are encouraged to design interventions that recognize and actively support the development of relational social capital alongside more traditional development inputs.