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DOI https://doi.org/10.18551/rjoas.2021-02.06
THE INFLUENCE OF VARIOUS FACTORS OF ENTREPRENEURIAL BEHAVIOR ON DAIRY FARM BUSINESS PERFORMANCE IN BOYOLALI REGENCY, INDONESIA
Ayuningtyas Nilasari*, Mukson, Edy Prasetyo
Faculty of Animal and Agriculture Sciences, University of Diponegoro, Semarang, Indonesia
*E-mail: Ayutyas853@gmail.com
ABSTRACT
This study aims to analyze the factors that influence dairy farmers' entrepreneurial behavior and the influence of farmers' entrepreneurial behavior on the performance of dairy businesses in Boyolali Regency, Central Java, Indonesia. The number of samples in the study is 150 farmers in two-stage clustered random sampling. Data analysis uses Structural Equation Modeling (SEM) with the help of AMOS software. The results showed that there is a positive influence of technical factors, individual factors and environmental factors on entrepreneurial behavior. Technical factors, environmental factors and entrepreneurial behavior of farmers also have a positive effect on the performance of dairy businesses.
KEY WORDS
Technical factors, individual factors, environmental factors, dairy business, entrepreneurial behavior, livestock business performance.
Animal husbandry is a business carried out by some Indonesians as one of the sources of income. The breadth of potential in nature, especially in the availability of feed, is a support for business success in the field of animal husbandry. In fact, a few people try to develop through innovations both in technical cultivation and post-production processing support. Farms that become prima donnas in some areas, especially in Boyolali Regency, are dairy cows. According to Barokah (2009), dairy cows became an icon in Boyolali Regency because it is the largest milk producer in Central Java. This cannot be separated from the large role of the Boyolali regency government so far, both in efforts to spur the development of dairy farms and the dairy processing industry's development.
The dairy farming business in Boyolali Regency is carried out by most communities on a small business scale or people's farms. According to research, Rachman et al. (1999) in Barokah (2009), the dairy business is generally carried out by farmers with an average business scale of 3 heads per breeder, with productivity ranging from 10 to 14 liters/tail/day. Meanfafaatkan and maximize the available natural resources become an option so that farmers have a huge influence to determine livestock business development through the technical improvement of cultivation and follow-up business post-production.
The dairy farming business in Boyolali Regency is carried out by most communities on a small business scale or people's farms. According to research, Rachman et al. (1999) in Barokah (2009), the dairy business is generally carried out by farmers with an average business scale of 3 heads per breeder, with productivity ranging from 10 to 14 liters/tail/day. Utilizing and maximizing the available natural resources is an option so that farmers have a huge influence to determine their livestock business development through the technical improvement of cultivation and follow-up business post-production.
The problems faced in the dairy business are divided into three sectors, namely upstream, middle and downstream. The upstream sector's problems include low dairy productivity, lack of availability of dairy seedlings, high feed costs, small ownership scale, and low quality of human resources. The middle sector's problems include technical cultivation and low recording system, land availability for feed production decreases, conversion of agricultural land to non-agricultural, business capital from banking is still intense and cross-sectoral cooperation has not been integrated. Problems in the downstream sector include the price of fresh milk from producer farmers is still low, and the selling price of pedet / dairy cows is unstable (Mandaka and Hutagaol, 2005). Human resource development
is expected to be one of the keys to answering this problem because, in the current era of globalization, creative and innovative farmers are needed to survive and compete.
Entrepreneurial factors determine the success of farmers in adjusting to environmental changes. This is what distinguishes livestock entrepreneurs from ordinary breeders. A livestock entrepreneur will consider various aspects of the market, see and manage possibilities, consider his business analysis, and have the management ability to develop his livestock business today so that better and profitable results are obtained. This is in line with Grande et al. (2012)'s statement that entrepreneurial behaviour can improve business performance and make farmers or ranchers innovative in utilizing their resources more efficiently.
LITERATURE REVIEW
Suryana (2003) explains the science of entrepreneurship is the ability and behaviour of a person is facing life's challenges and how to obtain opportunities with various risks that may be faced. Creative and innovative skills that serve as the basis, tips and resources to look for success opportunities. The point of entrepreneurship is creating different or new things through creative thinking and acting innovatively to create opportunities.
According to Bird (1996), entrepreneurial behaviour is human behaviour in identifying and exploiting opportunities through businesses' formation and development emphasising human creative and innovative behaviours. Performance can be used as a benchmark of success rate in making an effort to achieve the goals to be achieved. Good performance is a successful performance to achieve its goals well. The level of welfare in farmers can be directly affected by performance (Tajidan, 2013). Business performance is influenced by entrepreneurial behaviour as munizu research (2010) states that what affects the success of the business performance is more to human factors or the quality of resource improvements such as motivation, entrepreneurial competence, individual aspects, only after that other factors such as finance, access to capital and strategies run by farmers or farmers.
According to Premisti et al. (2016), dairy milk marketing is an important factor in pricing and ultimately determining the income of dairy milk producers. High prices do not necessarily provide high profits for manufacturers. Production needs to be considered marketing efficiency. The high cost of marketing will affect the price paid by consumers, and the price at the producer level makes the product able to compete in the market with the appropriate price and quality. It can do an increase in the dairy population in an area supported by the area's potential. It can enhance regional potentials for dairy development by providing feed availability, farmer knowledge, milk demand, farmers' income, market infrastructure, credit agencies' role, and local government policies (Santoso et al., 2013).
METHODS OF RESEARCH
This research is conducted in August-September 2020 in Boyolali Regency. The largest dairy population in Central Java is in Boyolali and it is the largest milk-producing centre in Central Java. The research was conducted by survey method, interview technique based on the questionnaire. The number of samples as many as 150 farmers in two stages clustered random sampling was carried out at two levels: the sub-district level and the farmer level. The sub-district level was deliberately selected four sub-districts, namely Musuk, Cepogo, Ampel and Mojosongo subdistricts. Data analysis using Structural Equation Modeling (SEM) AMOS software. Sem analyzed data processing includes validity and reliability tests, sample adequacy assumptions, normality assumptions, outlier assumptions, Goodness of Fit evaluations, and hypothesis testing.
RESULTS AND DISCUSSIONS
Boyolali Regency is one of 35 regencies/cities in Central Java Province, located between 110 ° 22 ' - 110 ° 50 ' East Longitude and 7 ° 7 '-7 ° 36 ' South Latitude, with an
altitude between 75-1500 meters above sea level. The respondents' characteristics in Boyolali Regency are known that the male sex of 79.33% dominated the respondents' breeders. Most respondent breeders (60.67%) are in the age range of 41- 60 years. The level of education of the respondent breeders is mostly (39.33%) finished high school. The number of family members of farmers respondents is mostly (70.67%) - 7 people. The number of lactation parents owned by respondent breeders is largely (66.00%) 1- 3 tails. The number of bunting cows owned by farmers respondents was mostly (67.33%) 1-3 tails. The number of heifers owned by farmers is mostly (51.33%) does not have a heifer. The number of farmers owned by respondents is mostly (67.33%) 1-3 tails. The number of bulls owned by the respondent breeders is largely (51.33%) 1-3 tails. Milk production produces by farmers respondents (27.33%) 10-<20 litres/day. Farmers' dairy business income is mostly (34.67%) between Rp. 1,000,000 to Rp. 2,000,000,-. Farmers' income respondents mostly (42.00%) between Rp. 1,000,000 to Rp. 2,000,000,-. Farmers who had other incomes mostly (62.67%) have no other income.
The first step in processing Structural Equation Modeling (SEM) with AMOS is a validity test where the validity of the research construction can be seen from the value of the loading factor. The item is valid if the loading factor value is greater than >0.5 or more ideally more than >0.7 so that items with a loading factor of less than >0.50 are considered invalid and not included in the measurement (Ghozali, 2017). Formal education construction has a loading factor of 0.491. This construction is considered invalid so it must be removed from the model. Based on AVE and CR calculations, the entire construct has a value of AVE > 0.5 and CR > 0.7, which means the entire construct has a good and reliable convergent. Based on normality testing, this c.r multivariate model is 2,248. Multivariate c.r is in the range of -2.58 <z <2.58, which means the SEM model in this study has met the normality assumption criteria. No Mahalanobis distance from the entire sample exceeded more than 51,178 (Chi-Square at a = 0.001 and df = 24), meaning the data analyzed did not contain an outlier.
Table 1 - Validity and Construct Reliability Test Results (CR)
Variable Indicator Loading Factor CR AVE
FT1 0.780
FT2 0.920
FT FT3 0.836 0.939 0.757
FT4 0.895
FT5 0.910
FI2 0.795
FI FI3 0.733 0.831 0.622
FI4 0.834
FL1 0.791
FL2 0.741
FL3 0.773
FL FL4 0.808 0.934 0.670
FL5 0.825
FL6 0.847
FL7 0.932
PK1 0.791
PK2 0.797
PK PK3 0.803 0.902 0.649
PK4 0.757
PK5 0.874
KU1 0.679
KU2 0.728
KU 0.872 0.634
KU3 0.886
KU4 0.871
The next step is a model test of Goodness of fit evaluation Sem testing using AMOS software obtained the following models:
Figure 1 - Structural Model of Entrepreneurial Behavior to Livestock Business Performance
In Figure 1 Entrepreneurial behaviour variables can act as mediation variables between independent variables of environmental factors and livestock business performance variables. More details can be seen as an evaluation of the Goodness of Fit in Table 2.
Table 2 - The goodness of Fit Evaluation Results
No. Index Reference Value Results Evaluation
1. Chi Square (X2) Expected small 431,964 -
2. Probability >0.05 0,000 Poor fit
3. CMIN/DF < 2 1,778 Good fit
4. RMSEA < 0.08 0,072 Good fit
5. RMR < 0.05 0,032 Good fit
6. GFI > 0,9 0,808 Marginal fit
7. TLI > 0,9 0,922 Good fit
8. NFI > 0,9 0,857 Marginal fit
9. CFI > 0,9 0,931 Good fit
Table 2 indicates the Goodness of fit the total value of Chi-Square (X2) is 431.964 with a probability of 0.000. 5 criteria show good fit results, namely CMIN/DF, RMSEA, RMR, TLI, and CFI where the value is at vulnerable reference values of 1,778, 0.772, 0.032, 0.922 and 0.931. 2 criteria show marginal fit results namely GFI and NFI, GFI value of 0.808 and NFI value of 0.857 is close to the reference value so it can be said to be marginal fit. These results show that the goodness of fit models are considered to meet the suitability of the model. The results showed that all hypotheses are acceptable and valid. H1, H3, H3, H4 and H 6 are valid at a significant level of a 0.001 while H5 is valid at a significant level a 0.05.
Table 3 - Structural Model Hypothesis Test Results
Variable Estimate S.E. C.R. P Hypothesis
PK <— FT ,166 ,069 2,409 ,016* H1
PK <— FI ,226 ,095 2,376 ,018* H2
PK <— FL ,262 ,106 2,470 ,014* H3
KU <— FT ,161 ,060 2,705 ,007* H4
KU <— FL ,305 ,078 3,929 *** H5
KU <— PK ,231 ,085 2,723 ,006* H6
Description: ***: significant on the a 0.001; *: significant on the a 0.05.
Based on the hypothetical test results, it is known that technical factors (FT) have a positive influence on entrepreneurial behaviour (PK). This is indicated by a probability value less than a 0.05, and a positive correlation is indicated by an estimated value of 0.166. This means that the better the technical factors owned by dairy farmers, which is reflected in the indicators of the amount of forage feed, concentrate feeding, feed quality and lactation age, the higher the entrepreneurial behaviour of dairy farmers.
The analysis results showed a positive influence between individual factors (FI) on entrepreneurial behaviour (EB). This is indicated by a probability value (P) less than a 0.05, with an estimated value of 0.226. This high estimate indicates that individual factors have a strong influence on the entrepreneurial behaviour of dairy farmers. The experience of farmers in dairy business makes farmers more adept at predicting the chances of success and failure in the dairy business. With the increasing experience of farmers, the courage to take risks is higher because farmers easily map the opportunities and obstacles faced when doing livestock business. The experience of farmers can be seen from the way of livestock maintenance in maintaining the health of dairy cattle, treatment if livestock is sick, the fulfilment of animal feed needs, determination of the right time for artificial insemination, characteristics of livestock that can produce milk with good quantity and quality.
Based on the hypothetical test results, it is known that technical factors (TF) have a positive influence on livestock business performance (BP). This is indicated by a probability value less than a 0.05, and a positive correlation is indicated by an estimated value of 0.166. Land ownership is to be made into cages of dairy cows influences farmers' income, productivity, and commitment to run their dairy businesses. The commitment is formed because of the fores looking in the farmer itself to expand and develop his dairy business so that the area of the cage owned by farmers has a positive relationship to the dairy business's performance.' Based on the hypothesis testing results, there is a positive influence between entrepreneurial behaviour (EB) and Livestock Business Performance (BP). This is indicated by a probability value (P) less than a 0.05, with an estimated value of 0.231. This can mean that the more farmers behave diligently, responsive to opportunities, independent, dare to take risks, and innovative, it will affect livestock businesses' performance, including increasing income, increasing productivity, increasing competitive ability, and high commitment to the business carried out. This is in line with Roach et al., (2016) research shows a positive relationship between entrepreneurial behaviour to a business performance where entrepreneurial factors that influence business performance and innovation are important factors to improve business performance.
CONCLUSION
Technical factors, individual factors, and environmental factors all three have a significant influence on dairy businesses' entrepreneurial behaviour. Technical factors affect the performance of the dairy business. Indicators that reflect technical factors that affect dairy businesses' performance are the amount of forage feed, concentrate feed provided, the quality of dairy feed, lactation life, and land area for the maintenance of dairy cows. Environmental factors affect the performance of a dairy business. Indicators that reflect environmental factors that affect dairy farmers' performance are the availability of input materials, counselling and training, capital and saprotan assistance, promotion and marketing support, business regulation, farmer cohesion and access to market information. Entrepreneurial behaviour has a significant effect on the performance of dairy businesses. Indicators that reflect entrepreneurial behaviour that affects dairy farmers' performance are innovative, dare to take risks, diligently strive, respond to opportunities, and be independent.
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