The Relationship of Community Empowerment and Social Capital towards Production Capacity of Agricultural Product in Indonesia

Abstract

This research aimed to predict and analyze the effects of community empowerment and social capital on production capacity of rice (paddy) in Indonesia. This research was very significant due to the ontological level and sociological level for improving production capacity. The problem was studied using a quantitative research method. Data were collected through survey questionnaires to 100 farmers in Indonesia and related documentation. Data were analyzed statistically by using Partial Least Square (PLS). The results were as follows: community empowerment positively affected production capacity, community empowerment positively affected social capital, social capital positively affected production capacity; and social capital fully mediated the relationship between community empowerment on production capacity. This result provides a recommendation for academicians and practitioners in making better development and implementation for improving production capacity.