ANALYSIS OF THE DETERMINANTS OF PRODUCT COMPETITION AND WELFARE OF VIRGINIA TOBACCO AT EAST LOMBOK OF EAST NUSA TENGGARA PROVINCE, INDONESIA

• Main Authors: Suparlan, Setiawina D., Budhi M.K.S., Yasa M.
• Format: Article
• Language: English
• Published: Russian Journal of Agricultural and Socio-Economic Sciences 2020-03-01
• Series: Russian Journal of Agricultural and Socio-Economic Sciences
• Subjects: intensity of partnerships; entrepreneurial orientation; role of government; social capital; product competitiveness; farmers' welfare
• Online Access: https://rjoas.com/issue-2020-03/article_06.pdf

This study examines whether the intensity of partnerships, entrepreneurial orientation, the role of government and social capital indirectly affect the welfare of farmers through Virginia tobacco competitiveness. Sampling technique used is Simple Random Sampling because the population of partner farmers has homogeneous characteristics. Each population has the same opportunity to be a respondent in this study from 84 partner farmers in Gelanggang Village and 68 partner farmers in Sukadana Village. The PLS evaluation model consists of three parts, namely the evaluation of the measurement model (outer model) more specifically about the relationship of indicator blocks or question items to variables, the evaluation of structural models (Inner models) that specifically connect between latent variables and hypothesis testing. SEM-PLS test results of the relationship between variables can be stated that the relationship between the intensity of partnerships with product competitiveness has no significant effect. The relationship between partnership intensity and farmers' welfare is not significant. The relationship between entrepreneurship orientation and product competitiveness is significant. The relationship between entrepreneurship orientation and farmers' welfare is significant. The relationship between the role of government and product competitiveness is not significant. The relationship between the role of government and farmers' welfare is significant. The relationship between social capital and product competitiveness is not significant. The relationship between social capital and farmers' welfare is not significant. The relationship of product competitiveness with the welfare of farmers has a positive and significant effect on the welfare of farmers. The relationship between partnership intensity and farmers' welfare through product competitiveness is not significant. The relationship between entrepreneurship orientation with farmers' welfare through product competitiveness has a direct and significant influence. The relationship between the role of government and farmers' welfare is not significant. The relationship between social capital and welfare through product competitiveness is not significant.