FINANCIAL INDEPENDENCE STRATEGY WITH THE ROLE OF SOCIAL CAPITAL AND HUMAN CAPITAL: MEDIATION OF INNOVATION ABILITY OF FISHERMEN GROUP ON BALEKAMBANG COAST, EAST JAVA
DOI:
10.54443/morfai.v5i4.4371Published:
2025-11-15Downloads
Abstract
The study aims to elucidate the implications derived from analyzing the direct effects of social capital and human capital on financial independence and innovation, as well as the impact of innovation on financial independence. Furthermore, it elucidates the significance and examination of the impact of social capital and human capital, mediated by innovation, on financial independence. The analytical instrument employed is a structural equation model utilizing Partial Least Squares, accompanied by a mediation test via Sobel. The study sample comprised 52 members of the Kondang Merak Beach fishermen's organization in Balekambang, East Java, Indonesia. The study's findings indicate that social capital does not directly influence financial independence; nevertheless, human capital has a direct and significant impact on both financial independence and innovation. Innovation directly influences financial independence. Innovation cannot mediate the impact of social capital; nevertheless, it can mediate the effect of human capital on financial independence.
Keywords:
Social Capital Human Capital InnovationReferences
Azzahra F, Sulandjari K. Analysis of Social Capital (Trust, Network, and Norms) of Farmer Households During the Covid-19 Pandemic in Pasirtalaga Village, Telagasari District, Karawang Regency. J Commun Pembang 2022;20:1–12.https://doi.org/10.46937/20202240339
Adriani E. Human Capital Measurement (A Literature Study). J-MAS (Jurnal Manaj Dan Sains) 2019;4:176. https://doi.org/10.33087/jmas.v4i1.86.
Baregheh A, Rowley J, Sambrook S. Towards a Multidisciplinary Definition of Innovation Towards a multidisciplinary definition of innovation. Manag Decis 2009;47:1323–39.https://doi.org/10.1108/00251740910984578.
Utami PA, Suminah Suminah, Eksa Rusdiyana. The Influence of Human Capital and Social Capital on the Independence of Oyster Mushroom Farmers in Karangpandan District, Karanganyar Regency. J Trit 2023;14:188–201.https://doi.org/10.47687/jt.v14i1.316.
Fukuyama, F. 2010. Trust (Social Virtue and Prosperity Creation). Yogyakarta: Qalam.
Fitriani, Ambya, Sutarni, Trisnanto, TB, Saty, FM, & Desfaryani, R. (2022). The Key Success of Local Staple Food Development Program: a Financial Comparison Study on Rice-Analog “Beras Siger” Business in Lampung. Inovbiz: Jurnal Inovasi Bisnis, 10(June), 75–80.
Sidharta, I., & Affandi, A. (2016). The empirical study on intellectual capital approach toward financial performance on rural banking sectors in Indonesia. International Journal of Economics and Financial Issues, 6(3), 1247–1253.
Soewarno, N., & Tjahjadi, B. (2020). Measures that matter: an empirical investigation of intellectual capital and financial performance of banking firms in Indonesia. Journal of Intellectual Capital, 21(6), 1085–1106.https://doi.org/10.1108/JIC-09-2019-0225.
Wambui, M.L., Cherotich, B.C., Emily, T., & Dave, B. (2017). Effects Of Work Life Balance On Employees' Performance In Institutions Of Higher Learning. A Case Study of Kabarak University. Kabarak Journal of Research & Innovation, 4(2), 60–79.http://eserver.kabarak.ac.ke/ojs/
Lingard, H., Brown, K., Bradley, L., Bailey, C., & Townsend, K. (2017). Improving employees' work-life balance in the construction industry: Project alliance case study. Journal of Construction Engineering and Management, 133(10), 807–815.https://doi.org/10.1061/(ASCE)0733-9364(2007)133:10(807)
Anggraini Y. The Role of Women in Coastal Communities in Improving Family Income of Fishermen in the Village of Bayah Sub District of Bayah Lebak Regency. J Kebijak Pembang 2018;13:97–106.
Adam, A. M., Frimpong, S., & Boadu, M. O. (2017). Financial literacy and financial planning: Implications for financial well-being of retirees. BEH - Business and Economic Horizons, 13(2), 224–236.
Adriani E. Human Capital Measurement (A Literature Study). J-MAS (Jurnal Manaj Dan Sains) 2019;4:176. https://doi.org/10.33087/jmas.v4i1.86.
Adler, A., Bush, A., Barg, F.K., Weissinger, G., Beck, A.T., Brown, G.K., … Beck, A.T. (2016). A Mixed Methods Approach to Identify Cognitive Warning Signs for Suicide Attempts. Archives of Suicide Research, 13(February), 1–24.
Andreeva, T., Garanina, T., Saenz, J., Aramburu, N., & Kianto, A. (2021). Does country environment matter in the relationship between intellectual capital and innovation performance? Journal of Business Research, 136, 263-273.https://doi. org/10.1016/j.jbusres.2021.07.038
Afrianti, R., & Halim, C. (2021). The Influence of MSME Actors' Perceptions About Accounting, Accounting Knowledge, and Business Scale on the Use of Accounting Information in Jalan Baru Village, Pariaman Tengah District, Pariaman City, West Sumatra 2015-2019. Journal of Sharia Business Management, 1(1).
Atmaja IKE, Purnamawati IGA, Sujana E. The Influence of Social Capital, Human Capital, Transaction Costs on the Success of UMKM in the Painting Industry in Buleleng Regency. JIMAT (Journal of Accounting Student Science) Undiksha 2020;11:374–84
Ambarwati D. Utilization of Social Capital in an Effort to Increase the Independence of Former Indonesian Migrant Workers in East Lampung Regency. J Penelit 2019;13:123. https://doi.org/10.21043/jp.v13i1.4191.
Amalia, N., & Hamdani, ML (2022). Analysis of the Influence of Financial Attitudes, Financial Experience and Personality on Financial Management Behavior Mediated by Financial Self-Efficacy. Fair Value: Scientific Journal of Accounting and Finance, 4(5), 2224–2233.
Azis, AM, Irjayanti, M., & Susanto, RJ (2019). Entrepreneurial Orientation and Innovation for Improving Competitive Advantage. Journal of Engineering and Science Research, 3(2), 1–7. https://doi.org/10.26666/rmp.jesr.2019.2.1
Azzahra F, Sulandjari K. Analysis of Social Capital (Trust, Network, and Norms) of Farmer Households During the Covid-19 Pandemic in Pasirtalaga Village, Telagasari District, Karawang Regency. J Commun Pembang 2022;20:1–12. https://doi.org/10.46937/20202240339.
Badrianto, Yuan. et. al. 2021. Managing Productive and Superior Human Resources. Bandung: CV. Media Sains Indonesia
Baregheh A, Rowley J, Sambrook S. Towards a Multidisciplinary Definition of Innovation Towards a multidisciplinary definition of innovation. Manag Decis 2009;47:1323–39. https://doi.org/10.1108/00251740910984578.
Barney, J. B., Ketchen, D. J., & Wright, M. (2011). The Future of Resource-Based Theory: Revitalization or decline? Journal of Management, 37(5), 1299–1315. https://doi.org/10.1177/0149206310391805
Budiarti I. The Influence Of Social Capital On Innovation Capabilities And Its Relation To Radical And Local Innovation Capabilities (Preliminary Study On Public Companies In Indonesia). AdBispreneur J Thinkers And Researchers Adm Business And Entrepreneurship 2021;6:41–51.
Barki, K., Satmoko, S., Eddy, BT 2017. The influence of social capital on the level of adoption of organic rice innovation among members of the Al-Barokah farmer group, Ketapang Village, Susukan District, Semarang Regency. Agromedia Journal. 35(2): 55-63
Basoeky, Panggabean, Wardhana, Hoeronis, Maisarah, Sudirman. (2021). Utilization of Digital Technology in Various Aspects of Community Life. Bandung: CV Media Sains Indonesia
Bulu, YG, SS Hariadi, AS Herianto, M. 2009. The Influence of Social Capital and Exposure to Innovation Information on the Level of Adoption of Corn Innovation in East Lombok Regency, West Nusa Tenggara.
Collis, D., & Montgomery, C. A. (1995). Competing on Resources. Harvard Business Review: Strategy in the 1990s, 118-128.
Delafrooz, N., & Paim, L. H. (2011). Determinants of financial wellness among Malaysian workers. African Journal of Business Management, 5, 10092-10100.
Drucker, Peter.F.2023. Innovation and Entrepreneurship: Analysis and Practice
Endri. The Role of Human Capital in Improving Company Performance: A Theoretical and Empirical Review. J Adm Business 2010;6:179–90.
Fernanda, R., & Sagoro, EM (2016). The Influence of Compensation, Job Satisfaction, Work Motivation and Leadership Style on Employee Performance. Nominal: Barometer of Accounting and Management Research, 5(2), 81-95.
Gunarto, M & Panulu, A. (2022). Analysis of Business Partnerships on MSME Performance Mediated by Innovation. JUMBIKU JOURNAL Vol 2 No. 3 (December 2022) – E-ISSN: 2827-8666 P-ISSN: 2827-8682
Gelderman, C. J., Schijns, J., Lambrechts, W., & Vijgen, S. (2021). Green marketing as an environmental practice: The impact on green satisfaction and green loyalty in a business-to-business context. Business Strategy and the Environment, 30(4), 2061–2076.https://doi.org/10.1002/bse.2732
Hartati S, Bayu K, Mustari E, Karim E, Bisnis S, Bandung IT, et al. ( Case study of female fishermen in Pangandaran Village, West Java ) School of Life Sciences and Technology, Bandung Institute of Technology, Indonesia. Sarwahita J Community Service 2021;18:91–105.
Hermansyah H. The Influence of Human Capital and Personality on the Success of MSME Entrepreneurs with Self-Efficacy as an Intervening Variable in Villages. J Ekon Manaj Sist Inf 2022;4:153–67.
Ismail A. Social Capital as a Survival Strategy for Fisherwomen on Maitara Island, Tidore Islands. J Sci, Soc And Hum 2022;2:29–38. https://doi.org/10.52046/jssh.v2i2.1345.
Ishak I. The Influence of Creativity and Innovation on Increasing the Income of Micro, Small and Medium Enterprises. J Ilm Ecobuss 2022;10:29–34. https://doi.org/10.51747/ecobuss.v10i1.935.
Kiran, V.S., Shanmugam, V., Raju, R.K., & Kanagasabapathy, J.R. (2022). Impact of Human Capital Management on Organizational Performance with The Mediation Effect of Human Resource Analytics. International Journal of Professional Business Review, 7(3), 1-27.https://doi.org/10.26668/businessreview/2022.v7i3.0667
Koroglu, B. A., & Eceral, T. O. (2015). Human Capital and Innovation Capacity of Firms in Defense and Aviation Industry in Ankara. Procedia - Social and Behavioral Sciences,https://doi.org/10.1016/j.sbspro.2015.06.196
Kusuma, AW, Isfandayani, I., Putra, P., Isnandar, FR, & Fahlevi, R. (2023). Strengthening Digital-Based Sharia Marketing Management. Al-Ihsan: Journal of Community Development in Islamic Studies, 2(1), 14–32.
Lupi, FR, & Nurdin. (2016). Analysis of Marketing Strategy and E-Commerce Sales on Tokopedia.Com. Electronic Journal of Information Systems and Computers, 2(1), 20–31.
Lestari W, Kartono DT, Demartoto A, Setiyawan KB. Household Empowerment Towards Independence Through Social Capital in the Family Hope Program (PKH). Society 2019;7:268–80
Lee, C.C., Wang, C.W., & Ho, S.J. (2020). Financial Innovation And Bank Growth: The Role Of Institutional Environments. North American Journal Of Economics And Finance, 53, 2–23.https://Doi.Org/10.1016/J.Najef.2020.101195
Lestari, DA, Purnamasari, ED, & Setiawan, B. (2020). The Influence of Payment Gateway on the Financial Performance of MSMEs. Journal of Business, Management, and Economics, 1(1), 1–10.https://Doi.Org/10.47747/Jbme.V1i1.20
Lin, C., Lin, P., Song, F. M., & Li, C. (2011). Managerial incentives, CEO characteristics and corporate innovation in China's private sector. Journal of Comparative Economics,39(2), 176-190.
Maika A, Kiswanto E. 2007. Empowerment of Poor Women in Small Businesses in Rural Areas Through Microfinance Institution Services (Grameen Bank) Center for Population and Policy Studies Gadjah Mada University S.344. Paper presented at the Monthly Seminar of the Center for Population and Policy Studies (PSKK) UGM, Thursday, April 26, 2007.
Martinette L.A., Obenchain-Leeson A., Gomez G., & Webb J. (2014). Relationship between learning orientation and business performance and the moderating effect of competitive advantage: An accounting services firm's perspective. International Business & Economics Research Journal, 13(4).
Munjal, S., Requejo, I., & Kundu, S. K. (2019). Offshore outsourcing and firm performance: Moderating effects of size, growth and slack resources. Journal of Business Research, 103, 484-494
Mushref, AM and Ahmad, SB, 2011. The relationship between knowledge management and business performance: An empirical study in Iraqi industry. World Review of Business Research, 1(2), pp.35-50.
Muchtar, Haryanto. 2009. The Role of Social Capital in Indonesia in Development. Yogyakarta: Pustaka Pelajar.
Mushref, AM and Ahmad, SB, 2011. The relationship between knowledge management and business performance: An empirical study in Iraqi industry. World Review of Business Research, 1(2), pp.35-50.
Mutamba, C. (2016). An Exploration and Critique of the use of Human Capital Theory in Human Resource Development Research. AHRD Conference in the Americas. Jacksonville, FL.
Nababan, D., & Sadalia, I. (2013). Analysis of personal financial literacy and financial behavior of undergraduate students of the University of North Sumatra's Econo. Management Information Media, 1(2), 1–16.
Nasution Y, Baiquny AS. The Role of Intellectual Capital, Competitive Advantage, and Innovation Capabilities on the Performance of Small and Medium Enterprises. J Ilm Al QALAM 2023:1–14. https://doi.org/10.35931/aq.v18i2.2954.
Ndubisi, NO; & Iftikhar, K. (2012). Relationship between Entrepreneurship, Innovation and Performance. Journal in Research in Marketing and Entrepreneurship, 14(2), 214–236
Nybakk, E. (2014). Learning Orientation, Innovativeness and Financial Performance in Traditional Manufacturing Firms : a Higher-Order Structural Equation Model. International Journal of Innovation Management, 16(5), 1–34. https://doi.org/10.1142/S1363919612003873
Primadona. The role of social capital and human capital in entrepreneurship. Seminar on Economics, Management and Accounting, Faculty of Economics, Padang State University 2015:199–204.
Ramos MIG, Donate MJ, & Guadamilas F. (2014). Technological posture and corporate social responsibility: Effect on innovation performance. Environmental Engineering and Management Journal, 13(10), 2497–2505.
Rahmadi and Malik. 2016. “The Influence of Trust and Risk Perception on E-Commerce Purchasing Decisions on Tokopedia.com in Jakarta”. Administrative Reform. Vol 3 No. 1. ISSN: 2355-309X. p126-145.
Riswanto R, Widjaya OH, Suryawan IN. The Influence of Management Skill, Financial Investor, and Human Capital on Women Entrepreneurial Success (Case Study: Women Entrepreneurs in North Jakarta). Karya Ilm Dosen 2014;16:21–6.
Sabri, M.F., Cook, C.C., & Gudmunson, C.G. (2012). Financial well-being of Malaysian College Students. Asian Education and Development Studies, 1(2), 153–170.https://doi.org/10.1108/20463161211240124
Saunila, M. (2014). Innovation capability for SME success: perspectives of financial and operational performance. Journal of Advances in Management Research, 11(2),https://doi.org/10.1108/JAMR-11-2013-0063
Sawitri D, Soepriadi I. Farmers' Social Capital and Industrial Development in Agricultural Center Villages in Subang and Karawang Regencies. J Perenc Wil Dan Kota 2014;25:17–38. https://doi.org/10.5614/jpwk.2014.25.1.2.
Saleh K, Hubeis AVS. Khaerul Saleh 1*), , Sumardjo , Aida Vitayala S Hubeis , and Herien Puspitawati 2 2018;14:43–51.
Schultz, D. & Schultz, E. S. (2010). Psychology and work today. (10 Editions). New York: Pearson.
Silalahi, M., Komariyah, I., Sari, AP, Purba, S., Sudirman, A., & Purba, P. (2020). Fundamentals of Management & Business. Our Writing Foundation.
Suminah S, Hariadi SS, Sundari MT, Wijianto A. Independence of Women Farmers in Food Industry Business in Solo Raya, Central Java. J Penyul 2017;13:97. https://doi.org/10.25015/penyuluhan.v13i1.14795.
Sumani, S., & Roziq, A. (2020). Financial Literacy: Determinants of Financial Well-Being in the Batik Small and Medium Industries in East Java. Journal of Management Applications, 18(2), 289–299.https://doi.org/10.21776/ub.jam.2020.018.02.09
Utami PA, Suminah Suminah, Eksa Rusdiyana. The Influence of Human Capital and Social Capital on the Independence of Oyster Mushroom Farmers in Karangpandan District, Karanganyar Regency. J Trit 2023;14:188–201. https://doi.org/10.47687/jt.v14i1.316.
Verhagen, Koenraad. 1996. Self-Reliance Development: NGO Experiences in Three Countries. Translation. Puspa Swara. Jakarta.
Wu, X., & Sivalogathasan, V. (2013). Innovation Capability for Better Performance: Intellectual and Organizational Performance of the Apparel Industry in Sri Lanka. Journal of Advanced Management Science, 273-277.
License
Copyright (c) 2025 Ayu Agus Tya Ningsih, Sukma Perdana
This work is licensed under a Creative Commons Attribution 4.0 International License.
Downloads
How to Cite
