The Source of Information and Social Capital in the Dissemination of Technology Information on Smallholder Coffee Cultivation

Abstract

As the fourth largest coffee-exporting country in the world, Indonesia needs to help increase its long-term coffee production. The high data on Indonesian coffee exports differ from the low national coffee productivity. The determining factors for coffee farmers' low adoption rate of innovative technology are the social capital and information networks they need to utilize adequately. This study aims to determine the role played by social capital and sources of information on coffee farmers’ adoption of innovative technology. This research method is a quantitative study using Structural Equation Modeling Partial Least Square (SEM PLS) analysis. Evaluation using SEM PLS includes evaluation of measurement models, structural models, and goodness-of-fit or goodness-of-fit models. The results obtained from a sample of 347 farmers using the SEM-PLS analysis show that, first, formal and informal information sources influence innovation adoption due to the direct interaction of farmers. However, informal information sources have little influence, and capital mediation is still required. Second, social capital mediates farmers’ innovation adoption. The adoption of innovation will be effective in the utilization of information sources.