Indicators of swamp buffalo business sustainability using partial least squares structural equation modelling

Abstract

Abstract The objective of this study is to analyse the effect of swamp buffalo (Bubalus bubalis carabauesis) sustainability indicators and to examine the relationship between these. The research was conducted in the central area for the development of swamp buffalo in South Kalimantan, namely, Hulu Sungai Utara Regency, in July 2022 with the participation of 145 farmers, who were identified using the multistage sampling method. There were 53 indicators with 9 latent variables, statistically modelled using the partial least squares structural equation modelling method, with evaluation of the outer and inner models. The results show that the information system and economy had a significant effect on human resources (HR), which in turn had a significant effect on the financial and business sustainability of swamp buffalo. The influence of information systems on resources was positive, while economic indicators had a negative influence. HR had a positive relationship with the financial and business sustainability of swamp buffalo. The sustainability indicators in swamp buffalo farming are complex and vary from region to region. Based on the study results, it is expected that the government as policymakers, especially the government of Hulu Sungai Utara Regency, South Kalimantan, pay special attention to the aspects of information systems, the economy, HR, and the financial and business sustainability of swamp buffalo, while also considering other indicators such as ecological, sociocultural, technological, and institutional ones.