FROM ENTREPRENEURIAL COMPETENCE TO BUSINESS PERFORMANCE: THE MEDIATING ROLE OF ENTREPRENEURIAL CAPACITY AMONG SASPRI-AFFILIATED DAIRY FARMERS
DOI:
https://doi.org/10.24246/agric.2026.v38.i1.p125-147Keywords:
Entrepreneurial competence, entrepreneurial capacity, business performance, dairy farmers, farmer organizationsAbstract
Improving the business performance of small-scale dairy farms requires more than technical farming skills; farmers must also be able to translate entrepreneurial competence into effective business practices. However, entrepreneurial competence may not directly improve business performance unless farmers possess the capacity to apply and operationalize these competencies in managing their enterprises. This study therefore examines the role of entrepreneurial capacity in linking entrepreneurial competence to business performance among dairy farmers affiliated with the Solidaritas Alumni Sekolah Peternakan Rakyat Indonesia (SASPRI) in Cijeruk District, Bogor Regency, Indonesia. A quantitative approach was employed using questionnaire data collected from 41 SASPRI-affiliated dairy farmers. The relationships among entrepreneurial competence, entrepreneurial capacity, and business performance were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that entrepreneurial competence has no significant direct effect on business performance but is positively associated with entrepreneurial capacity. Entrepreneurial capacity, in turn, is positively associated with business performance and fully mediates the relationship between entrepreneurial competence and business performance. These findings indicate that entrepreneurial competence alone is insufficient to improve dairy farm performance; its value is realized when farmers have the capacity to translate their competencies into effective business actions. The study highlights entrepreneurial capacity as a critical mechanism through which farmer competencies contribute to improved business performance and provides implications for capacity-building interventions targeting small-scale dairy farmers.
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