STRENGTHENING OF SOCIAL CAPITAL IN RELATION TO PERFORMANCE AND WELFARE OF SMALL INDUSTRY ACTORS IN THE BANGLI REGENCY, BALI PROVINCE
This study aims to: 1) analyze the influence of social capital and performance on the welfare of small industry actors in the Bangli Regency and 2) analyze the moderating effect of social capital on the relationship between performance and the welfare of small industry actors in the Bangli Regency. The population of small industries in the Bangli Regency is 1,288 units (Department of Industry and Trade, Bali Province, 2020). Using the Slovin formula, the sample size was determined to be 305 small industry actors. The sampling technique used was Stratified Random Sampling based on the sub-districts. Accidental sampling was utilized to determine the sample units for the interviews. Data collection methods included: 1) non-participant observation to collect secondary data by observing and recording information from documents sourced from the Bureau of Statistics and related departments; and 2) structured interviews to collect primary data from interviews with small industry actors using a pre-prepared questionnaire. The data analysis technique employs quantitative analysis with an associative approach. The intended structural equation was Y = β0 + β1X1 + β2X2 + β3X1X2 + e1. The study concludes that performance and social capital have a positive and significant impact on welfare. Social capital moderates and strengthens the influence of performance on the welfare of small industry actors in the Bangli Regency, Bali Province. It is recommended that social networks be enhanced, particularly in obtaining information related to both the process and marketing of produced products.
Keywords: small industry, social capital, business performance, welfare of small industry actors
