Mediation of Product Competitiveness toward the Welfare of Virginia Tobacco Partner Farmers, Lombok Island

Abstract

The purpose of this study is to analyze, first the influence of entrepreneurial orientation and the role of government on product competitiveness. Second, the third is the effect of entrepreneurial orientation, the role of government and competitiveness on the welfare of farmers. The influence of entrepreneurship orientation and the role of government indirectly on the welfare of farmers through product competitiveness. This research was conducted on virginia tobacco partner farmers in Lombok Island, West Nusa Tenggara. The PLS evaluation model consists of three parts, namely the evaluation of the measurement model (outer model) more specifically regarding the relationship between indicator blocks or question items with variables, evaluation of the structural model (Inner model) which specifically connects latent variables and hypothesis testing. A further explanation will be presented as follows. PLS inner model is also called inner relation which describes the relationship between latent variables based on the theory substance.

The findings of this study that the coefficient value of the relationship between entrepreneurial orientation and product competitiveness is 0.431, which is positive and significant. The coefficient value of the relationship between entrepreneurial orientation and farmer welfare is 0.236, which is positive and significant. The coefficient value of the relationship between the role of government and product competitiveness is 0.046, which is positive and insignificant. The coefficient value of the relationship between the role of the government and the welfare of farmers of 0.148 is positive and significant. The coefficient value of the relationship between product competitiveness and farmer welfare of 0.553 is positive and significant. Whereas the direct effect path coefficient of entrepreneurial orientation (X1) on farmer welfare (Y2) is (0.236) compared to the indirect effect path coefficient through the mediation of product competitiveness (0.238). Whereas the path coefficient of the direct effect of the government's role (X2) on the welfare of farmers (Y2) is dominant (0.148) compared to the path coefficient of the indirect effect through the mediation of product competitiveness (0.025).