Which Components Social Capital Influences Marketing? The Case of Local Food Processing Micro Small Medium Entreprises in Payakumbuh City, Indonesia

Elviati, Elviati and Yonariza, Yonariza and Ridwan, Endrizal and Hasnah, Hasnah (2019) Which Components Social Capital Influences Marketing? The Case of Local Food Processing Micro Small Medium Entreprises in Payakumbuh City, Indonesia. Journal Of Advanced Research in Dynamical and Control Systems, 11 (08). pp. 2046-2055. ISSN 1943-023x

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Abstract

A good market supports good business, and this hardly occurs with Micro, Small and Medium Enterprises (MSMEs),based on the limited production capacity. In addition, they often have difficulty competing with similar products obtained from established and large-scale suppliers, therefore, growing and maintaining the MSMEs business requires capital, availability of markets, networks, and skilled human resources, which needs to be bonded through social capital. This study aims to analyze the effect of social capital on marketing and how much influence it has on marketing. This study used survey method involving 98 respondents of MSMEs entrepreneurs, all was agriculture processing based MSMEs. Furthermore, the results showed that all social capital elements (beliefs, norms, and networks) simultaneously influenced marketing, seen from the R square value = 0.519, with the F test of Mean while, the t-test indicated the effect of all independent variables, specifically with Y (Maketing value), X1 (Trust Value), X2 (Norm Value), and X3 (Network Value). These findings confirm the significant positive effect ofeach social capital element (trust, norm, and networking) on marketing. This research suggests that running a business requires MSMEs to optimize social capital, particularly in the aspect of marketing network development

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