Systemic Governance of Rural Revitalization: Social Capital Transfer Through State-Owned Enterprise Interventions in China

Abstract

This study investigates how state-owned enterprises (SOEs) contribute to rural revitalization in China through systemic interventions that enable the transfer of social capital. Addressing the gap between external resource inputs and internal development needs, the study adopts a systems thinking framework to conceptualize social capital as comprising structural, relational, and cognitive components. Drawing on multi-case evidence from assistance projects led by China Southern Power Grid, this study selects 11 assistance projects from a broader pool of 199 cases, to demonstrate how SOEs act as institutional nodes to reshape rural governance systems. They rebuild local organizational networks (structural capital), establish long-term trust through “strong commitment–weak contract” mechanisms (relational capital), and localize technical knowledge to align with rural contexts (cognitive capital). These interlinked processes form an integrated system that enhances rural governance capacity and promotes sustainable development. The findings highlight that SOEs are not merely resource providers but systemic catalysts that support cross-scalar collaboration and social infrastructure building. The study contributes a novel perspective by integrating social capital theory with a systemic governance lens and offer a actionable insights into the institutional design of assistance models for the future interventions by SOEs and similar entities in underdeveloped areas.