The Role of Social Capital and External Factors in Farmer Behavior Change: Implications for Red Onion Agribusiness Development in the Corporate Farming

Abstract

This study investigates the role of social capital and external factors in influencing farmer behavior changes, with a specific focus on red onion agribusiness development in the corporate farming areas of Ngantang District, Malang Regency, Indonesia. The research aims to explore how social capital, defined as social networks, trust, and cooperation within farmer groups, impacts the adoption of modern agricultural technologies and practices. Additionally, the study examines the external factors such as government policies, agricultural extension services, and market access that influence these behavioral changes. Using a mixed-methods approach, the research combines quantitative analysis through Structural Equation Modeling (SEM) with qualitative data collected from surveys, in-depth interviews, and focus group discussions with 226 farmers. The results reveal that social capital has a significant positive effect on farmer behavior, with a path coefficient of 0.632 (p < 0.001), while external factors also influence farmer behavior with a path coefficient of 0.203 (p < 0.001). The study shows that strong social networks, characterized by trust and cooperation, facilitate the adoption of new agricultural technologies by enabling the exchange of knowledge, resources, and reducing risks. Moreover, external support mechanisms, such as government subsidies, extension services, and access to markets, enhance the effectiveness of social capital in driving innovation and sustainability in farming practices. The findings suggest that the interaction between social capital and external support systems is crucial for the successful adoption of agricultural innovations, thus improving productivity and sustainability in red onion agribusiness. The study concludes by emphasizing the need for integrated agricultural policies that foster both social capital development and external support mechanisms. The findings highlight the importance of strengthening farmer networks and institutional support to facilitate the adoption of new technologies and sustainable farming practices. This research contributes to the understanding of how both internal community dynamics and external interventions can be harnessed to drive agricultural development in corporate farming areas.