Determinants of Sustainability of Agricultural SMEs Mediated by Social Capital in West Java: A Case Study of Sukabumi Regency
DOI:
https://doi.org/10.61492/mgfymf26Keywords:
Leadership Agility, Entrepreneurial Experience, Organizational Culture, Social Capital, Business Sustainability, Agricultural SMEs.Abstract
This study aims to analyze the influence of Leadership Agility, Entrepreneurial Experience, and Organizational Culture on the Sustainability of Agricultural SMEs, as well as to examine the role of Social Capital as a mediating variable in horticultural agricultural SMEs in Sukabumi Regency. The study used a quantitative approach with a cross-sectional design. Data were obtained through questionnaires from 261 agricultural SMEs who are members of farmer groups in Sukabumi Regency. Data analysis used Partial Least Squares-Structural Equation Modeling (PLS-SEM) with a bootstrapping procedure. The results showed that Entrepreneurial Experience had a positive and significant effect on Business Sustainability (β = 0.191; t = 2.860; p = 0.004), as did Organizational Culture (β = 0.182; t = 2.141; p = 0.032) and Social Capital (β = 0.175; t = 2.309; p = 0.021). In contrast, Leadership Agility did not significantly influence Business Sustainability (β = 0.106; t = 1.921; p = 0.055) or Social Capital (β = 0.113; t = 1.847; p = 0.065). Entrepreneurial Experience (β = 0.362; t = 6.175; p < 0.001) and Organizational Culture (β = 0.309; t = 5.907; p < 0.001) significantly influenced Social Capital. In the mediation test, Social Capital mediated the influence of Entrepreneurial Experience (p = 0.029) and Organizational Culture (p = 0.032) on Business Sustainability, while mediation on the relationship between Leadership Agility was not significant (p = 0.175). This finding confirms that the sustainability of agricultural SMEs is stronger built through experience, organizational culture, and social relationships than individual leadership abilities alone.
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