A structural model of business performance: An Empirical Study on Tobacco Farmers

Few studies have been conducted on how farmers' entrepreneurship affects their farm performance. However, factors of entrepreneurship have not been adequately explored by researchers. Textbooks and articles onfarmmanagement usually stress the importance offarmers ' management capability wi...

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Main Author: Perpustakaan UGM, i-lib
Format: Article
Published: [Yogyakarta] : Fakultas Pertanian UGM Jur Sosial Ekonomi Pertanian 2006
Subjects:
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author Perpustakaan UGM, i-lib
author_facet Perpustakaan UGM, i-lib
author_sort Perpustakaan UGM, i-lib
collection UGM
description Few studies have been conducted on how farmers' entrepreneurship affects their farm performance. However, factors of entrepreneurship have not been adequately explored by researchers. Textbooks and articles onfarmmanagement usually stress the importance offarmers ' management capability with respect to their farm output. Unfortunately, they have failed to relate management capability to entrepreneurship. This study was conducted using a multilevel analysis with Structural Equation Model (SEM) to know the causal relationships among environment factors such as the country's economy, natural resources, institutions and organizations, individual backgrounds, entrepreneurship, management capacity, andfarm performance. The cross-sectional data was obtained in 2003 from four dominant tobacco producing districts in Central Java. The multilevel model�that relates external environment, entrepreneurship, and management capacity� can adequately represent the data to estimate farm performance. The results of the analysis indicate that factors like personal aspects, together with physical, economic and institutional environments, affectfanners' entrepreneurship. Personal aspects turn out to be the dominant factor that determines entrepreneurship and farm performance. This study also shows that fanners' entrepreneurship is affected by their management capacity, which, in turn, affects the farmers' farm performance. While there is no doubt in the adequacy of the model to estimate farm performance, this finding invites fiuther investigation to validate it in other fields and scale of business, such as in small and medium enterprises and other companies. Furthermore, in order to evaluate the goodness of fit of the model in various contexts, further research both in a cross-cultural context and cross-national contexts using this model should be conducted. Key words: economic and institutional environment
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spelling oai:generic.eprints.org:217322014-06-18T00:26:20Z https://repository.ugm.ac.id/21732/ A structural model of business performance: An Empirical Study on Tobacco Farmers Perpustakaan UGM, i-lib Jurnal i-lib UGM Few studies have been conducted on how farmers' entrepreneurship affects their farm performance. However, factors of entrepreneurship have not been adequately explored by researchers. Textbooks and articles onfarmmanagement usually stress the importance offarmers ' management capability with respect to their farm output. Unfortunately, they have failed to relate management capability to entrepreneurship. This study was conducted using a multilevel analysis with Structural Equation Model (SEM) to know the causal relationships among environment factors such as the country's economy, natural resources, institutions and organizations, individual backgrounds, entrepreneurship, management capacity, andfarm performance. The cross-sectional data was obtained in 2003 from four dominant tobacco producing districts in Central Java. The multilevel model�that relates external environment, entrepreneurship, and management capacity� can adequately represent the data to estimate farm performance. The results of the analysis indicate that factors like personal aspects, together with physical, economic and institutional environments, affectfanners' entrepreneurship. Personal aspects turn out to be the dominant factor that determines entrepreneurship and farm performance. This study also shows that fanners' entrepreneurship is affected by their management capacity, which, in turn, affects the farmers' farm performance. While there is no doubt in the adequacy of the model to estimate farm performance, this finding invites fiuther investigation to validate it in other fields and scale of business, such as in small and medium enterprises and other companies. Furthermore, in order to evaluate the goodness of fit of the model in various contexts, further research both in a cross-cultural context and cross-national contexts using this model should be conducted. Key words: economic and institutional environment [Yogyakarta] : Fakultas Pertanian UGM Jur Sosial Ekonomi Pertanian 2006 Article NonPeerReviewed Perpustakaan UGM, i-lib (2006) A structural model of business performance: An Empirical Study on Tobacco Farmers. Jurnal i-lib UGM. http://i-lib.ugm.ac.id/jurnal/download.php?dataId=4606
spellingShingle Jurnal i-lib UGM
Perpustakaan UGM, i-lib
A structural model of business performance: An Empirical Study on Tobacco Farmers
title A structural model of business performance: An Empirical Study on Tobacco Farmers
title_full A structural model of business performance: An Empirical Study on Tobacco Farmers
title_fullStr A structural model of business performance: An Empirical Study on Tobacco Farmers
title_full_unstemmed A structural model of business performance: An Empirical Study on Tobacco Farmers
title_short A structural model of business performance: An Empirical Study on Tobacco Farmers
title_sort structural model of business performance an empirical study on tobacco farmers
topic Jurnal i-lib UGM
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