Abstract
The aim of the research was to analyze the relationship between the social capital and innovation performance of agribusiness in Regency Bogor. The sample of the research was set as purposive sampling. There were 38 respondents involved from the nine districts. By the criteria, the entrepreneurs are also the owners of the agribusiness MSMEs and have been running their company for two years minimally. The data were analyzed by Sequal Equation Modeling Partial Least Square (SEM-PLS) method with SMART PLS 3.2.4. Based on the results, the majority of agribusiness MSMEs in Bogor Regency produce local and traditional products and have 1 to 5 employees. They earn money less than 100 million rupiahs annually, and most of them are categorized as the entrepreneurs of the micro and small enterprises. Social norm gives influence on innovation performance significantly, and it is reflected by providing aid to each other, having access to aids and willingness to share any information. The entrepreneurs of the agribusiness MSMEs possessing social norm will increase their innovation performance. Willingness to provide aid is the indicator to contribute significantly to social norm. Social network also gives effects significantly on innovation performance. Social network is reflected by network size, multiplexity and network constraints. The larger the network size, the wider important information related to the enterprises; therefore, it will increase opportunity to innovate. The height of multiplexity and network constraints will reduce the chance to innovate. Multiplexity is the highest indicator contributing to social network whereas trust variable does not give contribution significantly to innovation performance of the agribusiness MSMEs. Keywords: MSMEs, social capital, agribusiness, innovation performance
Highlights
The development of economy in Indonesia has started to be balanced. It does concentrate on macro business entrepreneurs and on micro business ones, due to the fact that micro business entrepreneurs are relatively able to endure during the economic crisis occurring in Indonesia; they have grown up more (KMSMES Department, 2004)
Agricultural, livestock, forestry, and fishery sectors are the business groups that significantly contribute to the structure of GDP, and the sectors are dominated by small business groups
The objectives of this study were (1) to analyze the social capital that is dominant in MSMEs of agribusiness in Bogor, (2) to analyze the innovation performance which is owned by MSMEs of agribusiness in Bogor, (3) to analyze the influence of social capital on innovation performance of MSMEs of agribusiness in Bogor Regency
Summary
The development of economy in Indonesia has started to be balanced It does concentrate on macro business entrepreneurs and on micro business ones, due to the fact that micro business entrepreneurs are relatively able to endure during the economic crisis occurring in Indonesia; they have grown up more (KMSMES Department, 2004). In this case, they are represented by micro, small and medium enterprises (MSMEs). The resources include agricultural staple food, plantations, livestock, fisheries, trade, and restaurants. Agricultural, livestock, forestry, and fishery sectors are the business groups that significantly contribute to the structure of GDP, and the sectors are dominated by small business groups
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