The Interplay of Social Capital and Entrepreneurial Performance: A Study on Agribusiness Small and Medium Enterprises (SMEs)

DOI

10.2991/978-2-38476-428-0_7How to use a DOI?

Keywords

SME Performance; Business Sustainability; Trust; Social Norms; Social Networks

Abstract

The performance of small and medium-sized enterprises (SMEs), particularly in the agribusiness industry, is significantly affected by social capital. Up to this point, studies have yet to delve into the connection between social capital and the entrepreneurial performance of businesses. This research examines the impact of social capital on the sustainable entrepreneurial performance of firms. To analyze the data, the study utilizes a quantitative approach and structural equation modelling (SEM) partial least squares (PLS) with SmartPLS 3.0 software. Data for the study was gathered by distributing an online survey to 650 owners of Agribusiness SMEs in Central Java, chosen through simple random sampling. The survey used a Likert scale ranging from 1 to 7. The data analysis encompasses validity, reliability, and hypothesis testing stages. The data analysis indicated that trust does not significantly influence the entrepreneurial performance of the company. However, social norms have a positive and significant impact on the entrepreneurial performance of the company, and social networks also have a positive and significant effect. The uniqueness of this study lies in constructing a correlation model for the variables of trust, social norms, and networks associated with social capital. The practical implication of this study is to encourage the improvement of Agribusiness SMEs’ performance in implementing the circular economy. The theoretical implication of this study is the creation of a new correlation model of social capital in the sustainable entrepreneurial performance of Agribusiness SMEs.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nur Muttaqien Zuhri
AU  - Wahyu Imam Santoso
AU  - Ali Khamdi
AU  - Nurul Puspita
AU  - Nun Maulida Suci Ayomi
AU  - Nanda Wanifa
PY  - 2025
DA  - 2025/05/31
TI  - The Interplay of Social Capital and Entrepreneurial Performance: A Study on Agribusiness Small and Medium Enterprises (SMEs)
BT  - Proceedings of the 3th Lawang Sewu International Symposium on Humanities and Social Sciences 2024 (LEWIS HUSO 2024)
PB  - Atlantis Press
SP  - 92
EP  - 108
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-428-0_7
DO  - 10.2991/978-2-38476-428-0_7
ID  - Zuhri2025
ER  -