PARTICIPATORY LEADERSHIP AND SOCIAL CAPITAL CONVERSION INTO ECONOMIC OUTCOMES: A MECHANISM-BASED MODEL FROM RURAL AND URBAN CONTEXTS IN ROI ET PROVINCE

Abstract

This study examines 1) the mechanisms through which participatory leadership mobilizes social capital and 2) how social capital can be leveraged to generate economic outcomes for area-based poverty reduction. The study draws on case studies conducted in Roi Et Province, Thailand, focusing on Dong Khrang Yai Subdistrict, Kaset Wisai District, and communities within Roi Et Municipality. A qualitative research approach was employed. Data were collected through in-depth interviews and non-participant observation with 16 purposively selected key informants who played active roles in livelihood development and area-based poverty reduction initiatives. Participants included area-level leaders, community leaders, occupational group leaders, and household members engaged in livelihood development activities. Data were analyzed using process-oriented thematic analysis, with social capital theory serving as the interpretive framework. The findings indicate that participatory leadership mobilizes social capital through five interrelated mechanisms: building trust, fostering collective cooperation, establishing shared norms and discipline, connecting communities with external networks and resources, and channeling social capital into economic outcomes. In rural communities, these mechanisms are closely associated with local natural resources, water resources, and collective agricultural production. In urban communities, they are linked to household capabilities, small-scale financial support, and access to urban markets. The resulting economic outcomes include supplementary household income, reduced essential expenditures, stronger community bargaining power, and the expansion of livelihood activities to neighboring communities. These findings contribute to a mechanism-based model illustrating how participatory leadership channels social capital into economic outcomes, offering a practical framework for designing area-based poverty reduction initiatives responsive to local conditions.