Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Analysis of Social Capital and Business Performance in Melinjo Emping Home Industry in Pandeglang Regency, Banten Province

Author(s): Khaerul Saleh

The existence of a cottage industry gives importance to the development of the rural economy, the success of the cottage industry cannot be separated from the role of social capital which is believed to be able to act as linking, binding, and even further as bonding in unraveling the problems that arise especially during the current epidemic. The purpose of this study was to see how far social capital works in improving economic performance, especially the melinjo emping home industry which is managed by rural women. This research was conducted in Pandeglang Regency, Banten Province, the area was chosen because Pandeglang is one of the centers for the melinjo chips industry. The research design uses a cross sectional study where the observed variables are observed simultaneously. Social capital is measured by 3 variables, namely trust, network, and norms. Business performance is measured by financial performance, operational performance, performance and marketing performance. The results showed that social capital had a significant relationship with the business performance of the melinjo emping home industry managed by rural women. Social capital variable that has a significant relationship with home industry business performance. Of the five home industry businesses performance variables, financial support, network support and moral support have a real and positive relationship to social capital performance, while market network variables and wage levels are not related to social capital performance. In general, the social capital of melinjo chips home industry players is in the good category.

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