Factors influencing livestock investment decisions in West Sumatra: A social capital in business scheme known as Seduaan

Abstract

This study aimed to analyze the effect of social capital on investment decision making in the business of smallholder cattle breeding with the same system. The data of this research were gathered through surveys and interviews with farmers and investors in Cow business in the province of West Sumatra. Data collected is in the form of latent constructs analyzed through the Structural Equation Modeling using Partial Least Square (SEM-PLS). The results of the study showed that the Minangkabau people’s investment decisions in the business of cattle through the social capital traditional scheme known as seduaan are influenced by social capital, risk and religion while the return did not affect investment decisions.