The Influence of Agrosilvopasture Implementation and MSME Incubation on SDGs in Rural Areas of Indonesia with Financial Literacy as a Mediator
Indri Ariyanti(1*), Riana Mayasari(2), Jovan Febriantoko(3), Jun Harbi(4), Fidel Harmanda Prima(5), Desti Lidya(6), Nelly Masnila(7), - Sunardi(8)
(1) Politeknik Negeri Sriwijaya, Palembang, Indonesia
(2) Politeknik Negeri Sriwijaya, Palembang, Indonesia
(3) Politeknik Negeri Sriwijaya, Palembang, Indonesia
(4) Universitas Muhammadiyah Palembang, Palembang, Indonesia
(5) Universitas Sriwijaya, Ogan Ilir, Indonesia
(6) Politeknik Negeri Sriwijaya, Palembang, Indonesia
(7) Politeknik Negeri Sriwijaya, Palembang, Indonesia
(8) Universitas Muhammadiyah Palembang, Palembang, Indonesia
(*) Corresponding Author
Abstract
This study aimed to explore the roles of Agrosilvopasture, MSME (Micro, Small, and Medium Enterprise) Incubation, and financial literacy in supporting Sustainable Development Goals (SDGs) in rural areas of Indonesia. The study procedures were carried out from April to September 2023 in Pagar Alam City using indigenous communities and stakeholders associated with customary forest management, comprising 100 intentionally selected respondents. Subsequently, the Slovin formula was used to determine the number of respondents, who were then selected using a purposive sampling method. The relationships among variables, including Implementation of Agrosilvopasture (X1), MSME Incubation (X2), Financial Literacy (M), and SDGs (Y), were tested. Data obtained were then analyzed using the Partial Least Squares-SmartPLS. The results of path coefficient analysis showed that Agrosilvopasture had a significant negative influence on financial literacy but a positive impact on SDGs. In addition, MSME incubation yielded a favorable impact on both financial literacy and SDGs. Mediation testing validated that financial literacy served as a mediator in the relationship between Agrosilvopasture and the examined outcomes. Based on the results, financial literacy, Agrosilvopasture implementation, and MSME incubation were crucial for achieving SDGs in rural areas. These holistic approaches offered promising pathways to achieve various SDGs, with financial literacy playing an essential role in enhancing the effectiveness of the strategies.
Keywords
Full Text:
PDFReferences
Abhayawansa, S., Adams, C. A., & Neesham, C. (2021). Accountability and Governance in Pursuit of Sustainable Development Goals: conceptualising how governments create value. Accounting, Auditing & Accountability Journal, 34(4), 923–945.
Akande, J. O., Hosu, Y. S., Kabiti, H., Ndhleve, S., & Garidzirai, R. (2023). Financial literacy and inclusion for rural agrarian change and sustainable livelihood in the Eastern Cape, South Africa. Heliyon, 9(6).
Aljaouni, N. W., Alserhan, B., Gleason, K., & Zeqiri, J. (2020). Financial literacy programs and youth entrepreneurial attitudes: some insights from the Jordanian community. Journal of Enterprising Communities, 14(5), 787–810. https://doi.org/10.1108/JEC-07-2020-0128
Anwar, A., Sinha, A., Sharif, A., Siddique, M., Irshad, S., Anwar, W., & Malik, S. (2022). The nexus between urbanization, renewable energy consumption, financial development, and CO 2 emissions: Evidence from selected Asian countries. Environment, Development and Sustainability, 1–21.
Asteria, D., Adi Negoro, H., & Utari, D. (2020). The effects of higher education and financial literacy to pro-environmental behavior in women community. In H. Herdiansyah & A. Sodri (Eds.), E3S Web of Conferences (Vol. 211). EDP Sciences. https://doi.org/10.1051/e3sconf/202021101002
Berisha, A., Hoti, A., & Hoti, H. (2024). An empirical study on micro, small, and medium enterprises access to finance in Kosovo: A survey based analysis. Multidisciplinary Science Journal, 6(5). https://doi.org/10.31893/multiscience.2024068
Breivik-Meyer, M., Arntzen-Nordqvist, M., & Alsos, G. A. (2020). The role of incubator support in new firms accumulation of resources and capabilities. Innovation, 22(3), 228–249.
Breuer, A., Janetschek, H., & Malerba, D. (2019). Translating sustainable development goal (SDG) interdependencies into policy advice. Sustainability, 11(7), 2092.
Charfeddine, L., Umlai, M. I., & El-Masri, M. (2024). Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importers. Financial Innovation, 10(1). https://doi.org/10.1186/s40854-023-00557-4
Chávez-Márquez, I. L., Flores-Morales, C. R., Parada, A. I. O., & Sánchez-Acosta, L. R. (2019). A Sustainable Business Incubation Model Focused on Family Firms: The Case of Mexico. In Handbook of Research on Entrepreneurial Leadership and Competitive Strategy in Family Business (pp. 417–435). IGI Global.
Cossa, A. J., Madaleno, M., & Mota, J. (2018). Financial literacy importance for entrepreneurship: A literature survey. In M. P. C. Amorim, C. Costa, M. Au-Yong-Oliveira, & M. P. C. Amorim (Eds.), Proceedings of the European Conference on Innovation and Entrepreneurship, ECIE (Vols 2018-September, pp. 909–916). Academic Conferences and Publishing International Limited. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85055435371&partnerID=40&md5=d56c29c6f803d4aa414710e5cacb732f
Dasgupta, R., Dhyani, S., Basu, M., Kadaverugu, R., Hashimoto, S., Kumar, P., Johnson, B. A., Takahashi, Y., Mitra, B. K., & Avtar, R. (2023). Exploring indigenous and local knowledge and practices (ILKPs) in traditional jhum cultivation for localizing sustainable development goals (SDGs): a case study from Zunheboto district of Nagaland, India. Environmental Management, 72(1), 147–159.
de Oliveira, E., Colaço, M. C., Fernandes, P. M., & Sequeira, A. C. (2023). Remains of traditional fire use in Portugal: A historical analysis. Trees, Forests and People, 14. https://doi.org/10.1016/j.tfp.2023.100458
DiBella, J., Forrest, N., Burch, S., Rao‐Williams, J., Ninomiya, S. M., Hermelingmeier, V., & Chisholm, K. (2023). Exploring the potential of SMEs to build individual, organizational, and community resilience through sustainability‐oriented business practices. Business Strategy and the Environment, 32(1), 721–735.
Dissanayaka, N. S., Udumann, S. S., Nuwarapaksha, T. D., & Atapattu, A. J. (2023). Agroforestry: An Avenue for Resilient and Productive Farming through Integrated Crops and Livestock Production. Zero Hunger, 115.
Fauzi, F., Antoni, D., & Suwarni, E. (2020). Women entrepreneurship in the developing country: The effects of financial and digital literacy on SMEs’ growth. Journal of Governance and Regulation, 9(4), 106–115. https://doi.org/10.22495/JGRV9I4ART9
Febriantoko, J., Mayasari, R., Ariyanti, I., Harbi, J., Prima, F., Lidya, D., Masnila, N., & Sunardi, S. (2023). Implementation of Agrosilvopasture and MSME Incubation to Support Sustainability Development Goals: A Multidisciplinary Perspective on Economic Enhancement. Proceedings of the 6th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2023, 13-14 September 2023, Bandar Lampung, Indonesia.
Franco, M., Haase, H., & Rodini, A. (2023). The role of incubators in the internationalization process of incubated SMEs: A perspective of international cooperation. Global Business Review, 24(3), 488–509.
Gabarret, I., & d’ANDRIA, A. (2021). Improving gender equality through entrepreneurship: The role of women-dedicated business incubators. Journal of the International Council for Small Business, 2(2), 79–89.
Hair Jr, J. F., Hair, J., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2023). Advanced issues in partial least squares structural equation modeling. saGe publications.
Haneberg, D. H., & Aaboen, L. (2020). Incubation of technology-based student ventures: The importance of networking and team recruitment. Technology in Society, 63, 101402.
Hanum, C. (2019). Palm oil plantation oriented agrosilvopastoral system development for enhancing the economy. IOP Conference Series: Earth and Environmental Science, 260(1). https://doi.org/10.1088/1755-1315/260/1/012183
Hayat, M., Zha, T., Nizami, S. M., Gulzar, S., Khan, A., Iqbal, S., & Khan, M. S. (2020). Productive role of agroforestry system in context of ecosystem services in district dir lower, Pakistan. Pakistan Journal of Botany, 52(4), 1411–1419. https://doi.org/10.30848/PJB2020-4(21)
Kastrinos, N., & Weber, K. M. (2020). Sustainable development goals in the research and innovation policy of the European Union. Technological Forecasting and Social Change, 157, 120056.
Kline, R. B. (2023). Principles and practice of structural equation modeling. Guilford publications.
Kulathunga, K., Ye, J., Sharma, S., & Weerathunga, P. R. (2020). How does technological and financial literacy influence SME performance: Mediating role of ERM practices. Information, 11(6), 297.
Kumar, P., Pillai, R., Kumar, N., & Tabash, M. I. (2023). The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being. Borsa Istanbul Review, 23(1), 169–183.
Lal, R. (2020). Managing soils for negative feedback to climate change and positive impact on food and nutritional security. Soil Science and Plant Nutrition, 66(1), 1–9. https://doi.org/10.1080/00380768.2020.1718548
Lima, I. L. P., Alexiades, M. N., & Scariot, A. (2022). Livestock Management Within a Traditional Agrosilvopastoral System in Northern Minas Gerais, Brazil: A Model for Reconciling Livelihoods and Conservation at a Time of Environmental Change. Human Ecology, 50(1), 183–193. https://doi.org/10.1007/s10745-021-00281-6
Liu, S., He, J., & Xu, D. (2023). Understanding the Relationship between Financial Literacy and Chinese Rural Households’ Entrepreneurship from the Perspective of Credit Constraints and Risk Preference. International Journal of Environmental Research and Public Health, 20(6). https://doi.org/10.3390/ijerph20064981
Lone, U. M., & Bhat, S. A. (2024). Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy. Journal of Financial Services Marketing, 29(1), 122–137.
López-Hidalgo, C., Guerrero-Sánchez, V. M., Gómez-Gálvez, I., Sánchez-Lucas, R., Castillejo-Sánchez, M. A., Maldonado-Alconada, A. M., Valledor, L., & Jorrín-Novo, J. V. (2018). A multi-omics analysis pipeline for the metabolic pathway reconstruction in the orphan species quercus ilex. Frontiers in Plant Science, 9. https://doi.org/10.3389/fpls.2018.00935
Mabula, J. B., & Ping, H. D. (2018). Use of technology and financial literacy on SMEs practices and performance in developing economies. International Journal of Advanced Computer Science and Applications, 9(6), 74–82. https://doi.org/10.14569/IJACSA.2018.090611
Magistro, B. (2022). Party cues or policy information? The differential influence of financial and economic literacy on economic policy preferences. Journal of Public Policy, 42(3), 465–488. https://doi.org/10.1017/S0143814X21000234
Mani, M. (2022). Financial Inclusion through Financial Literacy: Evidence, Policies, and Practices. International Journal of Social Ecology and Sustainable Development, 13(1). https://doi.org/10.4018/IJSESD.2022010102
Marchetti, L., Cattivelli, V., Cocozza, C., Salbitano, F., & Marchetti, M. (2020). Beyond sustainability in food systems: Perspectives from agroecology and social innovation. Sustainability, 12(18), 7524.
Masnila, N., Febriantoko, J., Mayasari, R., & Ariyanti, I. (2024). Unlocking Economic Landscape: Understanding the Dynamics of Financial Challenges, Business Traits, Financial Resources, Growth Phases, Financial Accessibility, and MSME Performance. Atestasi: Jurnal Ilmiah Akuntansi, 7(1), 317–339.
Mayasari, R., Ariyanti, I., Febriantoko, J., Harbi, J., Prima, F. H., Lidya, D., & Masnila, N. (2023). Referensi Inisiasi UMKM Pengolahan Hasil Hutan. Deepublish.
Miswanto, M., Tarigan, S. T., Wardhani, S., Khuan, H., Rahmadyanti, E., Jumintono, J., Ranatarisza, M. M., & Machmud, M. (2024). Investigating the influence of financial literacy and supply chain management on the financial performance and sustainability of SMEs. Uncertain Supply Chain Management, 12(1), 407–416. https://doi.org/10.5267/j.uscm.2023.9.011
Mukhlis, I., Rizaludin, M. S., & Hidayah, I. (2022). Understanding socio-economic and environmental impacts of agroforestry on rural communities. Forests, 13(4), 556.
Niggli, U., Sonnevelt, M., & Kummer, S. (2023). Pathways to advance agroecology for a successful transformation to sustainable food systems. Science and Innovations for Food Systems Transformation, 341–359.
Obi-Anike, H. O., Daniel, O. C., Onodugo, I. J., Attamah, I. J., & Imhanrenialena, B. O. (2023). The Role of Financial Information Literacy in Strategic Decision-Making Effectiveness and Sustainable Performance among Agribusiness Entrepreneurs in Nigeria. Sustainability (Switzerland), 15(13). https://doi.org/10.3390/su151310416
Peng, P., & Mao, H. (2023). The Effect of Digital Financial Inclusion on Relative Poverty Among Urban Households: A Case Study on China. Social Indicators Research, 165(2), 377–407. https://doi.org/10.1007/s11205-022-03019-z
Putra, P. B., Cahyono, S. A., Agus, C., Susanti, P. D., & Indrajaya, Y. (2022). The Role of Integrated Organic Cycle Farming in Tropical Agroforestry Systems for Sustainable Food Production. In Sustainable Agriculture and Food Security (pp. 171–182). Springer.
Salatalohy, A., & Ryadin, A. R. (2023). Assessment of cultivation techniques and agroforestry systems on cinnamon (case study in Jaya Village, Tidore Island). IOP Conference Series: Earth and Environmental Science, 1180(1). https://doi.org/10.1088/1755-1315/1180/1/012034
Sarker, I. H. (2021). Data science and analytics: an overview from data-driven smart computing, decision-making and applications perspective. SN Computer Science, 2(5), 377.
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In Handbook of market research (pp. 587–632). Springer.
Shvaher, O. A., Degtyarev, S. I., & Polyakova, L. G. (2021). The effect of social media on financial literacy. International Journal of Media and Information Literacy, 6(1), 211–218. https://doi.org/10.13187/IJMIL.2021.1.211
Smith, H., Discetti, R., Bellucci, M., & Acuti, D. (2022). SMEs engagement with the Sustainable Development Goals: A power perspective. Journal of Business Research, 149, 112–122.
Smolo, E., Knezović, E., & Aydin, Š. (2023). Extending the concept of financial literacy: A step toward a sustainable society. Heritage and Sustainable Development, 5(1), 65–76. https://doi.org/10.37868/hsd.v5i1.145
Sohail, K., Belitski, M., & Christiansen, L. C. (2023). Developing business incubation process frameworks: A systematic literature review. Journal of Business Research, 162, 113902.
Sturiale, L., Scuderi, A., Timpanaro, G., & Matarazzo, B. (2020). Sustainable use and conservation of the environmental resources of the etna park (unesco heritage): Evaluation model supporting sustainable local development strategies. Sustainability, 12(4), 1453.
Sultana, N., & Gupta, N. (2023). Supportive Policy Intervention in Incubating Innovative Enterprises for the Creation of a Self-Reliant Economy. FIIB Business Review, 23197145231162250.
Sumekar, S., & Haryadi, U. (2016). Sosialisasi Sustainable Development Goals (SDGs) Implementasi di Perpustakaan. Perpusnas.
Sutherland, D. L., McCauley, J., Labeeuw, L., Ray, P., Kuzhiumparambil, U., Hall, C., Doblin, M., Nguyen, L. N., & Ralph, P. J. (2021). How microalgal biotechnology can assist with the UN Sustainable Development Goals for natural resource management. Current Research in Environmental Sustainability, 3, 100050.
Toni, N., & Theng, B. P. (2024). Investigating the effect of financial literacy and financial inclusion on operational and sustainable supply chain performance of SMEs. Uncertain Supply Chain Management, 12(1), 573–582. https://doi.org/10.5267/j.uscm.2023.8.014
Ünvan, Y. A. (2021). Financial Literacy Concept and the Importance of Financial Education. In Empowering Education: Research, Theory And Practice (pp. 299–323). Peter Lang AG. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85107415408&partnerID=40&md5=99ff633242f6eb016274b5ff56896047
Venturi, M., Piras, F., Corrieri, F., Martinez Aguilar, E. A., & Santoro, A. (2022). The multifunctional role of linear features in traditional silvopastoral systems: the sabana de morro in Dolores (El Salvador) and the pastures with carob trees in Ragusa (Italy). Biodiversity and Conservation, 31(10), 2315–2327.
Wu, W., Wang, H., & Tsai, F.-S. (2020). Incubator networks and new venture performance: the roles of entrepreneurial orientation and environmental dynamism. Journal of Small Business and Enterprise Development, 27(5), 727–747.
Wulandari, C., Harianto, S. P., & Novasari, D. (2020). Pengembangan Agroforestri yang Berkelanjutan dalam Menghadapi Perubahan Iklim (1st ed.). Pusaka Media.
Yakob, S., Yakob, R., BAM, H.-S., & Rusli, R. Z. A. (2021). Financial literacy and financial performance of small and medium-sized enterprises. The South East Asian Journal of Management, 15(1), 5.
Zaidi, R. A., Khan, M. M., Khan, R. A., & Mujtaba, B. G. (2023). Do entrepreneurship ecosystem and managerial skills contribute to startup development? South Asian Journal of Business Studies, 12(1), 25–53.
DOI: https://doi.org/10.22146/ae.90222
Article Metrics
Abstract views : 2035 | views : 834Refbacks
- There are currently no refbacks.
Copyright (c) 2024 Agro Ekonomi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
View My Stats