The Impact of Social Capital on the Economic Components Driving Urban Regeneration in Historical Communities: A case study of Feyzabad Community, Kermanshah City

Document Type : Research article

Authors

Department of Urban Planning and Design, Faculty of Art and Architecture, University of Kurdistan, Sanandaj, Iran

10.22059/jurbangeo.2025.394124.2062

Abstract

ABSTRACT
Social capital is recognized as a key element in urban regeneration. This type of capital facilitates the regeneration of the local community, and the success of regeneration projects depends on it; weaknesses in its components can have negative effects on these projects. The present study investigates the impact of social capital and its components on the economic factors that drive urban regeneration in the historical neighborhood of Feyzabad in Kermanshah. In this study, 180 questionnaires were completed and analyzed using structural equation modeling. Seven components were identified as elements of social capital: sense of belonging, support from social institutions, acceptance of values, shared understanding, networks, trustworthiness, and civic participation. Additionally, three economic factors driving regeneration were examined, including belief in increased property values, willingness to use loans, and motivation to allocate personal income to projects. The findings indicate that only two components, "sense of belonging" and "shared understanding and cooperation," have a positive and significant impact on the economic factors driving regeneration. However, this influence is not directly observed in other factors. Elements such as "acceptance of values," "civic participation," and "networks, relationships, and communications" have an indirect impact. The relationships among residents (intragroup capital) are in a favorable state; however, their weak connections with governmental institutions and lack of trust in the municipality and government have weakened intergroup and outgroup social capital. Therefore, the inefficiencies of the municipality and government have limited the potential of social capital in the historical neighborhood of Feyzabad for sustainable regeneration.
Extended Abstract
Introduction
Social capital is recognized as a vital element in the structure of society, formed through trust, participation, and relationships among individuals. Research studies indicate that this concept is not limited to explaining inequalities in access to resources but also plays a pivotal role in the process of neighborhood regeneration and the enhancement of local policies. Findings suggest that the success of urban regeneration projects requires the spontaneous participation of the local community and the strengthening of social capital through the adoption of bottom-up (people-centered) approaches.
Within the theoretical domain, numerous studies have analyzed the role of social capital in urban regeneration. Researchers have identified various indicators, including trust, participation, sense of place, and social cohesion, as influential variables in facilitating this process. Accordingly, contemporary urban planning approaches emphasize the integration of social capital components as a strategic paradigm for attaining desirable urban regeneration outcomes.
Social capital, as a fundamental component of local community development, plays a pivotal role in facilitating collective interactions and strengthening public participation to achieve common goals. This concept holds particular strategic importance in urban regeneration processes, which require coordination and collaboration among multiple stakeholders. In contemporary times, historic urban texture that once served as hubs of socio-cultural dynamism now face numerous challenges, including declining residential rates and reduced activity levels due to structural disconnections in spatial organization and weakened face-to-face interactions. This trend has increasingly highlighted the necessity for a comprehensive and informed approach to urban planning and design; an approach capable of utilizing local community capacities to facilitate both functional and physical revitalization of these neighborhoods, ultimately enhancing urban living conditions. Based on these premises, the present study aims to examine the impact of social capital and its constituent components on the economic drivers of urban regeneration in the historical neighborhood of Feyzabad in Kermanshah.
 
Methodology
This study is classified as applied research. Given its focus on examining the causal relationship between components of social capital (derived from prior literature) and economic drivers of urban regeneration, the study adopts a positivist paradigm and quantitative methodological framework. In alignment with the variables identified in the theoretical framework and conceptual model, relevant indicators were developed for questionnaire construction, with their validity verified by five domain experts. The data collection instrument comprised a 69-item closed-ended questionnaire based on a 5-point Likert scale (ranging from "Very High" [5] to "Very Low" [1]).
This study examines seven independent components of social capital, networks, relationships and communications, trust, shared understanding and cooperation, acceptance of values, civic participation, sense of belonging, and support and importance of social institutions and along with three dependent economic components that stimulate urban regeneration confidence in property value appreciation through regeneration investments, willingness to use government loans and facilities for regeneration, and the level of willingness to spend personal income on regenerating one's residential area. The questionnaires were distributed randomly throughout the neighborhood, and ultimately, 180 completed questionnaires were collected. Given the small sample size based on Henseler's rule, partial least squares structural equation modeling (PLS-SEM) was employed. Data preparation and preprocessing were performed using Excel and SPSS software. The structural equation modeling was then conducted using Smart PLS software in two steps: the measurement model to assess validity, reliability, and model fit, and the structural model to test the hypotheses.
 
Results and discussion
Two components, sense of belonging with an impact coefficient of 0.464 and shared understanding and cooperation with an impact coefficient of 0.432, have a positive and significant effect on economic regeneration at a 95% confidence level. Although other components of social capital do not have a direct and significant impact on the economic drivers of regeneration, they indirectly influence it. Civic participation and communication networks contribute to urban regeneration by strengthening the sense of belonging and the acceptance of values, mediated through civic engagement.
The weak social capital in this neighborhood is linked to very low trust in governmental institutions (municipality, state) and poor participation in formal meetings and public events. The ineffective performance and unfavorable policies of the municipality and state institutions have further eroded social capital in the area, simultaneously slowing down urban regeneration. It could be argued that bonding social capital (local relationships) remains relatively stable, but linking social capital requires urgent improvement.
 
Conclusion
Urban deteriorated areas, such as the Feyzabad neighborhood in Kermanshah, possess multidimensional values (social, physical, economic, cultural, and environmental) and require integrated planning that places social capital at its core. This study reveals that in Feyzabad, while bonding social capital (e.g., neighborhood ties) remains strong, severe deficiencies in bridging and linking social capital (connections with institutions outside the neighborhood) hinder development. This gap necessitates strengthening local intermediary institutions to foster linkages between residents and power structures.
Past programs in Feyzabad have largely followed a top-down and opportunistic approach, leading to the erosion of social capital. To achieve sustainable regeneration, it is essential to engage residents in active participation and cultivate "new social capital" (emphasizing extra-neighborhood connections) to balance historical values with modern standards. This shift requires moving toward community-driven interventions and empowering civil society organizations, ensuring that regeneration is not merely physical but also rooted in the real needs of the community.
 
Funding
There is no funding support.
 
Authors’ Contribution
Authors contributed equally to the conceptualization and writing of the article. All of the authors approved the content of the manuscript and agreed on all aspects of the work declaration of competing interest none.
 
Conflict of Interest
Authors declared no conflict of interest.
 
Acknowledgments
We are grateful to all the scientific consultants of this paper.

Keywords

References

  1. Afthanorhan, A., Ghazali, P. L., & Rashid, N. (2021). Discriminant validity: A comparison of CBSEM and consistent PLS using Fornell & Larcker and HTMT approaches. In Journal of Physics: Conference Series (Vol. 1874, No. 1, p. 012085). IOP Publishing.
  2. Aghaeizadeh, E., Hesam, M., & Mohammadzadeh, R. (2019). Evaluation of social capital in the process of urban regeneration in the urban problematic fabric (Case Study: Rasht). Urban Structure and Function Studies, 6(19), 145-167. doi: 10.22080/shahr.2019.15457.1685 [In Persian].
  3. Ahmadi, M., Andalib, A., Majedi, H. & Zarabadi, Z. S. S. (2019). Analysis of the Position of the Social Capital in the Regeneration of the Historically Worn-Out Fabrics of Imāmzāde Yahyā Neighborhood, Using the Structural Equations. Urban Planning Knowledge, 3(2), 49-63. doi: 10.22124/upk.2019.10641.1102 [In Persian].
  4. Alaei Bousjin, M. (2020). Study of the Effect of Urban Regeneration on the Development of Social Capital (Case Study: Ardabil Aliqapu Sidewalk). Journal of Iranian Social Development Studies, 12(4), 137-149. [In Persian].
  5. Alizadeh Birjandi, A., Alizadeh, K. & Jafari, H. (2021). Spatial-spatial analysis of social participation in the regeneration of dysfunctional urban contexts (Case study: Birjand). Geography (Regional Planning), 11(43), 251-270. [In Persian].
  6. Cho, H. (2023). Inner-group and inter-group relations in Seoul participatory planning: revisiting the concept of social capital. Asian Geographer, 40(2), 169-183. ‌
  7. Colavitti, A. M., & Serra, S. (2023). Planning regulation and land value capture in Italy between traditional approaches and new perspectives. City, Territory and Architecture, 10(1), 16. ‌
  8. Craig, A., Hutton, C., Musa, F. B., & Sheffield, J. (2023). Bonding, bridging and linking social capital combinations for food access; A gendered case study exploring temporal differences in southern Malawi. Journal of Rural Studies, 101, 103039. ‌ ‌
  9. Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). SAGE.
  10. Custers, G., & Engbersen, G. (2024). Linking social capital and organizational ties: How different types of neighborhood organizations broker resources for the urban poor. Journal of Urban Affairs, 46(10), 1992-2008. ‌ ‌
  11. Du, T., Zeng, N., Huang, Y., & Vejre, H. (2020). Relationship between the dynamics of social capital and the dynamics of residential satisfaction under the impact of urban renewal. Cities, 107, 102933. ‌
  12. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. ‌
  13. Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook (p. 197). Springer Nature. ‌
  14. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning.
  15. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage.
  16. Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management & Data Systems.
  17.  Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43, 115-135.
  18. Hosseinzadeh Dalir, K., Sadr Moosa, M., Heidari Jiyaneh Dalir, R., & Tabbaa, S. K. (2010). A new approach to urban development strategy (CDS) in urban planning with emphasis on challenges facing comprehensive plans in Iran. Geographical Space Scientific-Research Quarterly, 11(36), 173-210. [In Persian].
  19. Izadi, A., Mohammadi, M., Nasekhian, S., & Memar, S. (2020). Structural functionalism, social sustainability and the historic environment: a role for theory in urban regeneration. The Historic Environment: Policy & Practice, 11(2-3), 158-180. ‌
  20. Jackson, C. (2019). The effect of urban renewal on fragmented social and political engagement in urban environments. Journal of Urban Affairs, 41(4), 503-517.
  21. Jamshidi, R., moosavi, M., Faramarzi Asl, M. & Jamali, S. (2022). The Impact of Social Participation in the Process of Recreating the Old Texture of Cities (Case Study: Zone 4 of Urmia City). Geography, 20(74), 145-163. [In Persian].
  22. Kamil, A. I., Meliza, R., Aulia, F., Kausar, A., & Sari, S. (2022). The Social Capital of Acehnese Entrepreneurs (Case Study on Fabric Traders at Bireuen Regency). In Proceedings of International Conference on Social Science, Political Science, and Humanities (ICoSPOLHUM) (Vol. 3, pp. 00039-00039). ‌
  23. Kim, B., Lee, G. S., Kim, M., Lee, W. S., & Choi, H. S. (2023). Developing and Applying an Urban Resilience Index for the Evaluation of Declining Areas: A Case Study of South Korea’s Urban Regeneration Sites. International Journal of Environmental Research and Public Health, 20(4), 3653. ‌
  24. Kim, H., Chung, J. K., & Lee, M. H. (2019). Social network analysis of the Jangwi urban regeneration community. Sustainability, 11(15), 4185. ‌
  25. Kline, R. B. (2016). Principles and Practice of Structural Equation Modeling (4th ed.). Guilford Press.
  26. Knippschild, R., & Zöllter, C. (2021). Urban Regeneration between Cultural Heritage Preservation and Revitalization: Experiences with a Decision Support Tool in Eastern Germany. Land, 10(6), 547. https://doi.org/10.3390/land10060547
  27. Kramer, D., Lakerveld, J., Stronks, K., & Kunst, A. E. (2017). Uncovering how urban regeneration programs may stimulate leisure-time walking among adults in deprived areas: a realist review. International Journal of Health Services, 47(4), 703-724. ‌
  28. Lee, J. H., & Lim, S. (2018). An analytic hierarchy process (AHP) approach for sustainable assessment of economy-based and community-based urban regeneration: The case of South Korea. Sustainability, 10(12), 4456.
  29. Lee, W. Y., Shin, S. H., & Jang, S. H. (2022). Sustainable urban regeneration strategies in Korea’s abandoned mine area using industrial heritage. Advances in Civil Engineering, 2022(1), 7401027. ‌
  30. Makulbayeva, G., & Sharipova, D. (2024). Social capital and performance of public councils in Kazakhstan. Journal of Eurasian Studies, 18793665241266260. ‌
  31. McDonald, S., Malys, N., & Maliene, V. (2009). Urban regeneration for sustainable communities: A case study. Technological and Economic Development of Economy, 15(1), 49-59. ‌
  32. Morales-Flores, P., & Marmolejo-Duarte, C. (2021). Can We Build Walkable Environments to Support Social Capital? Towards a Spatial Understanding of Social Capital; a Scoping Review. Sustainability, 13(23), 13259. https://doi.org/10.3390/su132313259.
  33. Mosavi rad, S. & Ghodsian, H. (2016). Analyzing the Elites Emigration and the Impacts of Preventive Policies by Using System Dynamics. Strategic Management Researches, 21(59), 37-62. [In Persian].
  34. Mullenbach, L. E., Larson, L. R., Floyd, M. F., Marquet, O., Huang, J. H., Alberico, C., ... & Hipp, J. A. (2022). Cultivating social capital in diverse, low-income neighborhoods: The value of parks for parents with young children. Landscape and Urban Planning, 219, 104313.
  35. Nakano, S., & Washizu, A. (2021). Will smart cities enhance the social capital of residents? The importance of smart neighborhood management. Cities, 115, 103244. ‌
  36. Niazi, H., Sedaghati, A. & safaee, M. J. (2018). Monitoring the role of social capital in urban regeneration, on the margins of cities and villages annexed to cities, with emphasis on the parameters of trust and people's participation. Geography and Human Relationships, 1(3), 154-170. [In Persian].
  37. Nzau, B., & Trillo, C. (2020). Affordable housing provision in informal settlements through land value capture and inclusionary housing. Sustainability, 12(15), 5975. ‌
  38. Pastor, A. B., Canniffe, E., & Jiménez, C. J. R. (2023). Learning from Letchworth and Welwyn Garden City: Garden cities’ policies for the development of existing settlements in the contemporary world. Land Use Policy, 132, 106759. ‌
  39. Piasek, G., & Garcia-Almirall, P. (2023). Vulnerable Neighbourhoods, Disaffiliated Populations? A Comprehensive Index of Social Capital and Social Infrastructure in Barcelona. Buildings, 13(9), 2249.
  40. Pourzakarya, M., & Bahramjerdi, S. F. N. (2021). Community-led regeneration practice in Ghalam Gudeh district, Bandar Anzali, Iran: A participatory action research (PAR) Project. Land Use Policy, 105, 105416.
  41. Rafiei, H., Madani-GHahfarokhi, S. & Vameghi, M. (2008). Priorities of Social Problems in Iran. Iranian Journal of Sociology, 9(1,2), 151-160. [In Persian].
  42. Rich, M. A. (2013). “From coal to cool”: The creative class, social capital, and the revitalization of Scranton. Journal of Urban Affairs, 35(3), 365-384. ‌
  43. Rosa-Jiménez, C., Márquez-Ballesteros, M. J., García-Moreno, A. E., & Navas-Carrillo, D. (2023). Neighbourhood cooperatives for the integrated urban regeneration of mass housing areas: speculations on a proposed model. Social Enterprise Journal, 19(5), 575-597. ‌
  44. Sarabadani, Gh. (2006). Inflation, its causes and solutions to combat it in Iran. Islamic Economics, 6(21), 103-129. [In Persian].
  45. Shin, B. (2022). Determinants of social capital from a network perspective: A case of Sinchon regeneration project using exponential random graph models. Cities, 120, 103419.
  46. Siedi, S., Modiri, M. & Sarvar, R. (2024). Analyzing Social Resilience in Urban Contexts of Sanandaj and the Effect of Regeneration on it. Urban Economics and Planning, 4(4), 208-221. doi: 10.22034/uep.2024.427884.1439 [In Persian].
  47. Tahooni, M. & Tahooni, E. (2023). Examining the role of social capital in sustainable urban regeneration (Case study: the northern neighborhoods of the historical-cultural fabric of Tabriz city). Urban Space and Social Life, 1(3), 55-71. doi: 10.22034/jprd.2023.55105.1025 [In Persian].
  48. Tenenhaus, M., Amato, S., & Esposito Vinzi, V. (2004, June). A global goodness-of-fit index for PLS structural equation modelling. In Proceedings of the XLII SIS scientific meeting (Vol. 1, No. 2, pp. 739-742).
  49. Thompson, M., & Hepburn, P. (2022). Self-financing regeneration? Capturing land value through institutional innovations in public housing stock transfer, planning gain and financialisation. Town Planning Review, 93(3), 251-274. ‌
  50. Tong, D., Zhang, Y., MacLachlan, I., & Li, G. (2020). Migrant housing choices from a social capital perspective: The case of Shenzhen, China. Habitat International, 96, 102082. ‌
  51. Varvaee, M. (2019). The neighborhood of Feyzabad in Kermanshah during the Qajar era. Growth of History Education, 21(1), 14-18. [In Persian].
  52. Wahid, W., Salman, D., & Demmallino, E. B. (2024). Bonding, bridging, and linking social capital combinations in maize agribusiness system. Journal of Infrastructure, Policy and Development, 8(2), 2817. ‌
  53. Wang, H., Zhao, Y., Gao, X., & Gao, B. (2021). Collaborative decision-making for urban regeneration: A literature review and bibliometric analysis. Land Use Policy, 107, 105479. ‌
  54. Wetzels, M., Odekerken-Schröder, G., & Van Oppen, C. (2009). Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS quarterly, 177-195. ‌
  55. Wolf, E. J., Harrington, K. M., Clark, S. L., & Miller, M. W. (2013). Sample size requirements for structural equation models: An evaluation of power, bias, and solution propriety. Educational and Psychological Measurement, 73(6), 913-934.
  56. Wolfram, M. (2019). Assessing transformative capacity for sustainable urban regeneration: A comparative study of three South Korean cities. Ambio, 48(5), 478-493.
  57. Yang, J., Yang, L., & Ma, H. (2022). Community participation strategy for sustainable urban regeneration in Xiamen, China. Land, 11(5), 600.
  58. Zangeneh, M., Abavisani, K. & bozuei, M. (2024). Assessing the social capital of residents to realize the urban regeneration approach (Case Study: Neighborhood of Joghatai City). Geography and Urban Space Development, 11(1), 93-109. doi: 10.22067/jgusd.2023.75554.1175 [In Persian].
Geographical Urban Planning Research (GUPR)
Volume 13, Issue 3
October 2025
Pages 1-20

Files

Share

How to cite

Statistics