International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12

line decor
  
line decor

 Volume 13, Issue 7 (July 2026), Pages: 68-82

----------------------------------------------

 Original Research Paper

Social capital, knowledge transfer, and sustainable performance: Evidence from agricultural village-owned enterprises in Central Java

 Author(s): 

Imronudin Imronudin *, Soepatini Soepatini, Edy Purwo Saputro

 Affiliation(s):

Management Department, Faculty of Economics and Business, Muhammadiyah University of Surakarta, Surakarta, Indonesia

 Full text

    Full Text - PDF

 * Corresponding Author. 

   Corresponding author's ORCID profile:  https://orcid.org/0000-0002-3441-5402

 Digital Object Identifier (DOI)

 
https://doi.org/10.21833/ijaas.2026.07.006

 Abstract

Village-owned enterprises (VOEs) in Indonesia show different levels of sustainability, even though they receive government support and are rooted in strong community traditions. However, the ways in which different dimensions of social capital affect their performance are still not well understood, especially the mediating role of knowledge transfer in collectivist cultural settings. This study investigates how cognitive, structural, and relational capital influence the sustainable performance of VOEs through knowledge transfer mechanisms. Structural equation modeling is used to analyze data collected from agricultural VOEs in several regencies of Central Java. The sample includes VOEs at different stages of development and operating in horticulture, livestock, and fisheries. Data were gathered through structured questionnaires completed by VOE managers. The results indicate that cognitive and relational capital have a significant positive effect on sustainable performance, while structural capital does not have a significant direct effect. Knowledge transfer significantly mediates the relationship between relational and structural capital and sustainable performance, but it does not mediate the effect of cognitive capital. These findings suggest that shared values and strong relationships among stakeholders are the most important factors for VOE success in collectivist cultures, while formal structures mainly support knowledge exchange rather than directly improving performance. This study contributes to rural development by showing how community-based enterprises can use social capital to improve sustainability, and it offers practical implications for managers and policymakers in designing capacity-building programs across Southeast Asia.

 © 2026 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

Village-owned enterprises, Social capital, Knowledge transfer, Sustainable performance, Collectivist culture

 Article history

Received 2 December 2025, Received in revised form 28 June 2026, Accepted 11 July 2026

 Acknowledgment

We would like to thank the Directorate General of Higher Education, Research, and Technology of Indonesia for providing financial support in the implementation of this research with contract number 108/ES/PG. 02. OO.PL/ 2O24. 

 Compliance with ethical standards

 Ethical considerations

This study was conducted in accordance with applicable ethical standards for research involving human participants. Participation was voluntary, and informed consent was obtained from all respondents before completing the questionnaire. Participants were informed about the purpose of the study and their right to withdraw from participation. No personally identifiable information was collected, and respondents' anonymity and confidentiality were maintained throughout the study. The collected data were used solely for academic research purposes. 

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

Imronudin I, Soepatini S, and Saputro EP (2026). Social capital, knowledge transfer, and sustainable performance: Evidence from agricultural village-owned enterprises in Central Java. International Journal of Advanced and Applied Sciences, 13(7): 68-82

  Permanent Link to this page

---------------------------------------------- 

 References (48)

  1. Ahado S, Hejkrlík J, Enkhtur A, Tseren T, and Ratinger T (2021). Does cooperative membership impact the yield and efficiency of smallholder farmers? Evidence from potato farmers in Mongolia. China Agricultural Economic Review, 13(4): 736-755. https://doi.org/10.1108/CAER-01-2021-0013   [Google Scholar]
  2. Aisyah RA, Sukoco BM, and Anshori M (2019). The effect of relational capital on performance: Knowledge sharing as mediation variables in supplier and buyer relation. International Journal of Logistics Systems and Management, 34(2): 211-232. https://doi.org/10.1504/IJLSM.2019.102214   [Google Scholar]
  3. Ajates R (2020). Agricultural cooperatives remaining competitive in a globalised food system: At what cost to members, the cooperative movement and food sustainability? Organization, 27(2): 337-355. https://doi.org/10.1177/1350508419888900   [Google Scholar]
  4. Alshahrani MA and Salam MA (2024). Entrepreneurial orientation and SMEs performance in an emerging economy: The mediating role of absorptive capacity. Journal of Research in Marketing and Entrepreneurship, 26(1): 1-24. https://doi.org/10.1108/JRME-07-2022-0090   [Google Scholar]
  5. Astuti PD, Datrini LK, and Chariri A (2023). Understanding the antecedents and consequences of sustainable competitive advantage: Testing intellectual capital and organizational performance. Economies, 11(4): 120. https://doi.org/10.3390/economies1104012    [Google Scholar]
  6. Beltramino NS, García-Perez-de-Lema D, and Valdez-Juárez LE (2020). The structural capital, the innovation and the performance of the industrial SMEs. Journal of Intellectual Capital, 21(6): 913-945. https://doi.org/10.1108/JIC-01-2019-0020   [Google Scholar]
  7. Birasnav M, Mittal R, and Dalpati A (2019). Integrating theories of strategic leadership, social exchange, and structural capital in the context of buyer-supplier relationship: An empirical study. Global Journal of Flexible Systems Management, 20: 219-236. https://doi.org/10.1007/s40171-019-00211-y   [Google Scholar]
  8. Chandhasa R and Pattanapanithipong P (2021). Role of community in knowledge transfer and production of new potters at the Maenam Noi kilns in the province of Sing Buri, Thailand. Kasetsart Journal of Social Sciences, 42(1): 95-100. https://doi.org/10.34044/j.kjss.2021.42.1.15   [Google Scholar]
  9. Elkington J (1997). Cannibals with forks: The triple bottom line of 21st century business. Capstone, Oxford, UK.   [Google Scholar]
  10. Franke G and Sarstedt M (2019). Heuristics versus statistics in discriminant validity testing: A comparison of four procedures. Internet Research, 29(3): 430-447. https://doi.org/10.1108/IntR-12-2017-0515   [Google Scholar]
  11. Hair J, Hollingsworth CL, Randolph AB, and Chong AYL (2017b). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management & Data Systems, 117(3): 442-458. https://doi.org/10.1108/IMDS-04-2016-0130   [Google Scholar]
  12. Hair JF Jr, Babin BJ, and Krey N (2017a). Covariance-based structural equation modeling in the Journal of Advertising: Review and recommendations. Journal of Advertising, 46(1): 163-177. https://doi.org/10.1080/00913367.2017.1281777   [Google Scholar]
  13. Hair JF Jr, Gabriel MLDS, da Silva D, and Braga Junior S (2019). Development and validation of attitudes measurement scales: Fundamental and practical aspects. RAUSP Management Journal, 54(4): 490-507. https://doi.org/10.1108/RAUSP-05-2019-0098   [Google Scholar]
  14. Hair JF Jr, Hult GTM, Ringle CM, and Sarstedt M (2021). A primer on partial least squares structural equation modeling (PLS-SEM). 3rd Edition, SAGE Publications, Thousand Oaks, USA. https://doi.org/10.1007/978-3-030-80519-7   [Google Scholar]
  15. Harun AB, Al Bayazid A, Hoque MN, and Das ZC (2024). Organic dairy farming in Bangladesh: Current status, challenges and prospects. Asian-Australasian Journal of Food Safety and Security, 8(1): 13-26. https://doi.org/10.3329/aajfss.v8i1.70307   [Google Scholar]
  16. Haseeb M, Hussain HI, Kot S, Androniceanu A, and Jermsittiparsert K (2019). Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability, 11(14): 3811. https://doi.org/10.3390/su11143811   [Google Scholar]
  17. Henseler J, Hubona G, and Ray PA (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management & Data Systems, 116(1): 2-20. https://doi.org/10.1108/IMDS-09-2015-0382   [Google Scholar]
  18. Henseler J, Ringle CM, and Sarstedt M (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43: 115-135. https://doi.org/10.1007/s11747-014-0403-8   [Google Scholar] PMCid:PMC13258017
  19. Huang Y, Wang C, Sun R, Chen L, and Lin Z (2024). Complements or substitutes? A meta-analysis of the role of social capital for individual knowledge transfer. Journal of Intellectual Capital, 25(2-3): 448-467. https://doi.org/10.1108/JIC-08-2023-0190   [Google Scholar]
  20. Hussien BSA, Benlaria H, Sadaoui N, Khader Ahmed SA, Lzabat LZ, and Ahmed Abdulrahman Badreldin BM (2024). Sustainable innovation and business success: The mediating roles of information technology capability and knowledge management. International Journal of Advanced and Applied Sciences, 11(5): 166-176. https://doi.org/10.21833/ijaas.2024.05.018   [Google Scholar]
  21. Imronudin I and Hussain J (2020). Sustainable supply chain finance process in delivering financing for SMEs: The case of Indonesia. International Journal of Supply Chain Management, 9: 867-878.   [Google Scholar]
  22. Ismail M (2015). Conceptualizing knowledge transfer between expatriates and host country nationals: The mediating effect of social capital. Cogent Business & Management, 2(1): 1101803. https://doi.org/10.1080/23311975.2015.1101803   [Google Scholar]
  23. Joseph N and Totawar A (2021). How to increase social capital of organizations: Identifying the role of informal learning behaviors. Development and Learning in Organizations: An International Journal, 35(3): 1-3. https://doi.org/10.1108/DLO-02-2020-0041   [Google Scholar]
  24. Kan WS and Lejano RP (2023). Relationality: The role of connectedness in the social ecology of resilience. International Journal of Environmental Research and Public Health, 20(5): 3865. https://doi.org/10.3390/ijerph20053865   [Google Scholar] PMid:36900876 PMCid:PMC10001267
  25. Mahfud K and Apriani W (2024). Sustainable partnership models between farmers and agribusiness: An extension approach to enhancing competitive advantage. Proceeding of Research and Civil Society Desemination, 2(1): 391-395. https://doi.org/10.37476/presed.v2i1.83   [Google Scholar]
  26. Mishchuk H, Štofková J, Krol V, Joshi O, and Vasa L (2022). Social capital factors fostering the sustainable competitiveness of enterprises. Sustainability, 14(19): 11905. https://doi.org/10.3390/su141911905   [Google Scholar]
  27. Murshed R and Uddin MR (2020). Organic farming in Bangladesh: To pursue or not to pursue? An exploratory study based on consumer perception. Organic Farming, 6(1): 1-12. https://doi.org/10.12924/of2020.06010001   [Google Scholar]
  28. Nahapiet J and Ghoshal S (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2): 242-266. https://doi.org/10.2307/259373   [Google Scholar] PMid:24104574
  29. Nguyen H and Ha T (2020). Social capital and firm performance: A study on manufacturing and services firms in Vietnam. Management Science Letters, 10(11): 2571-2582. https://doi.org/10.5267/j.msl.2020.3.038   [Google Scholar]
  30. Ojong N and Simba A (2019). Fostering micro-entrepreneurs' structural and relational social capital through microfinance. Journal of Small Business & Entrepreneurship, 31(1): 1-20. https://doi.org/10.1080/08276331.2017.1423161   [Google Scholar]
  31. Pham CV, Liu SF, and Chen SH (2024). Corporate ESG performance and intellectual capital: International evidence. Asia Pacific Management Review, 29(3): 306-346. https://doi.org/10.1016/j.apmrv.2023.12.003   [Google Scholar]
  32. Prasetya BP, Moeljadi, Wijayanti R, and Aisjah S (2023). Innovation capacity and social capital as mediators of relationships in integrated quality management with sustainable performance of village-owned enterprises in Klaten district, Central Java, Indonesia. International Journal of Applied Economics, Finance and Accounting, 17(2): 454-468. https://doi.org/10.33094/ijaefa.v17i2.1198   [Google Scholar]
  33. Preacher KJ and Hayes AF (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40: 879-891. https://doi.org/10.3758/BRM.40.3.879   [Google Scholar] PMid:18697684
  34. Purnama YI (2024). Implementation of the triple bottom line concept to improve sustainable marketing performance. Journal of Economics and Business Letters, 4(2): 40-50. https://doi.org/10.55942/jebl.v4i2.284   [Google Scholar]
  35. Qiao S and Wang Q (2021). The effect of relational capital on organizational performance in supply chain: The mediating role of explicit and tacit knowledge sharing. Sustainability, 13(19): 10635. https://doi.org/10.3390/su131910635   [Google Scholar]
  36. Sánchez-García E, Marco-Lajara B, Martínez-Falcó J, and Poveda-Pareja E (2023). Cognitive social capital for knowledge absorption in specialized environments: The path to innovation. Heliyon, 9(3): e14223. https://doi.org/10.1016/j.heliyon.2023.e14223   [Google Scholar] PMid:36923853 PMCid:PMC10009193
  37. Sapta IKS, Sudja IN, Landra IN, and Rustiarini NW (2021). Sustainability performance of organization: Mediating role of knowledge management. Economies, 9(3): 97. https://doi.org/10.3390/economies9030097   [Google Scholar]
  38. Sari NP, Muhammad H, Imron M, Azwar Anas MY, Sutomo S, Assiddiq DU, and Jannah UM (2024). Exploring integrated governance to stimulate sustainable performance of village-owned enterprises. Jati: Jurnal Akuntansi Terapan Indonesia, 7(2): 133-150. https://doi.org/10.18196/jati.v7i2.23845   [Google Scholar]
  39. Seng TL and Taha AZ (2017). Interpartner relation fit, knowledge transfer, and IJVs innovativeness: The Malaysian context. International Journal of Advanced and Applied Sciences, 4(1): 47-54. https://doi.org/10.21833/ijaas.2017.01.007   [Google Scholar]
  40. Somiartha P, Utama IMS, Sudibia IK, and Dewi MHU (2024). Determinants of performance of village-owned enterprises in improving village development performance. International Journal of Professional Business Review, 9(1): e04181. https://doi.org/10.26668/businessreview/2023.v9i1.4181   [Google Scholar]
  41. Téllez MDCM, Betancourt IO, Sánchez PMV, Castro LML, and Carrillo JAM (2021). The role of intentions in determining social entrepreneurial profile. European Journal of Business and Management Research, 6(2): 86-90. https://doi.org/10.24018/ejbmr.2021.6.2.794   [Google Scholar]
  42. Tseng ML, Chang CH, Lin CWR, Wu KJ, Chen Q, Xia L, and Xue B (2020). Future trends and guidance for the triple bottom line and sustainability: A data driven bibliometric analysis. Environmental Science and Pollution Research, 27: 33543-33567. https://doi.org/10.1007/s11356-020-09284-0   [Google Scholar] PMid:32572746 PMCid:PMC7423869
  43. Vamba M, Kibutu T, and Musau J (2023). Devolution of agriculture and its effects on mango marketing by small-scale farmers in Makueni County, Kenya. East African Journal of Agriculture and Biotechnology, 6(1): 271-284. https://doi.org/10.37284/eajab.6.1.1326   [Google Scholar]
  44. Weber C and Weber B (2010). Social capital and knowledge relatedness as promoters of organizational performance: An explorative study of corporate venture capital activity. International Studies of Management & Organization, 40(3): 23-49. https://doi.org/10.2753/IMO0020-8825400302   [Google Scholar]
  45. Wojciechowska M (2021). Trust as a factor in building cognitive social capital among library workers and users. Implications for library managers. The Journal of Academic Librarianship, 47(1): 102300. https://doi.org/10.1016/j.acalib.2020.102300   [Google Scholar]
  46. Wulandari F and Wardani MK (2024). Open innovation in village-owned enterprises: The role of entrepreneurial orientation in improving financial and social performance. Cogent Business & Management, 11(1): 2350079. https://doi.org/10.1080/23311975.2024.2350079   [Google Scholar]
  47. Yuliarmi NN, Dunggio M, and Yasa INM (2020). Improving public welfare through strengthening social capital and cooperative empowerment. Cogent Business & Management, 7(1): 1841075. https://doi.org/10.1080/23311975.2020.1841075   [Google Scholar]
  48. Zhang F, Xiao F, and Yu P (2024). A model of sustainable development in economic, social, and environmental aspects: The role of social capital in China. Environmental Research Communications, 6(4): 045001. https://doi.org/10.1088/2515-7620/ad37a8   [Google Scholar]