Investigating the Impact of Social Capital, Cross-Sector Collaboration, and Leadership on Social Innovation in Rural Social Enterprises

Abstract

Objectives: This study aims to investigate empirical evidence regarding the relationship between social capital, cross-sector collaboration, leadership, and the development of social innovation in Indonesian villages with rural social enterprises, Badan Usaha Milik Desa (BUMDes). Methods/Analysis: The study employed a mixed approach, combining a quantitative survey, non-participative observation, and in-depth interviews. Data were collected from 280 BUMDes directors, communities, and village governments in the West Java province, Indonesia. The quantitative data were analyzed by structural equation modeling (SEM), and the hypotheses were tested against the variables investigated. The results were strengthened through in-depth interviews with five key informants. Findings: The findings reveal a significant positive effect of cross-sector collaboration and leadership on social innovation in BUMDes. However, social capital was found to have no significant effect on social innovation. Additionally, the study revealed a decline in community trust in rural Indonesia. Novelty/Improvements: This research provides empirical evidence on the influence of social capital, cross-sector collaboration, and leadership on social innovation in the context of rural social enterprises in developing countries. It makes a significant contribution to existing theory and has the potential to influence the development of rural social enterprise and social innovation, which has not been sufficiently researched to date. From an empirical perspective, this study provides evidence from West Java, Indonesia, regarding the relationship between these variables and indicators in the context of rural social enterprises in developing countries, where the sector is still at a developmental stage. Doi: 10.28991/HEF-2024-05-01-09 Full Text: PDF