Toward a sustainable future: Exploring the interplay between social capital, entrepreneurial orientation, and sustainable rural tourism entrepreneurship

Abstract

Purpose:The purpose of this study is to investigate the following: the relationship between social capital (SC), entrepreneurial orientation (EO) and sustainable rural tourism entrepreneurship (SRTE); and, the role played by EO in enhancing SC on SRTE.

Design/methodology/approach:A quantitative research with a sample of rural tourism entrepreneur in Yogyakarta province. Data were collected through a self-structured questionnaire developed from literature review (pretested with pilot study). The interview survey was conducted with 380 sample of rural tourism entrepreneur from 38 tourism sites. Calculation of the partial least square model was performed for data.

Findings:The results establish that SC and EO have a direct impact on SRTE, while SC also affects EO. The research also reveals that EO completely mediates the relationship between SC and SRTE, which is conducive to boosting its total impact. This means that, creativity, proactivity and risk taking are also crucial in turning social relations into outcomes with impact and yet.

Research limitations/implications:The limitation of this study is that it only focuses on one region (Yogyakarta), so the findings are not generalizable. This paper focuses solely on social ties, network type and the relationship quality of SC to examine the utility of SC for rural tourism enterprises. On the basis of this paper, future work might attempt to investigate bridging and bonding type of SC to examine its influence upon sustainable performance among rural tourism organizations.

Practical implications:For rural tourism entrepreneurs and policy-makers, this study has practical implications on highlighting the role of SC in improving sustainability outcomes by leveraging strong EO. The research underscores the need for developing innovation, proactiveness, and a willingness to take risks in order to convert social networks into strategic assets. These results provide practical implications for the design of capacity-building programs and sustainability-oriented policies specific to rural tourism development in Indonesia and similar settings.

Social Implications:This study highlights the importance of policies and programs involving building SC and cultivating entrepreneurial attitudes in a rural context. Such works will also have some synergy effect on SRTE.

Originality/value:This research will satisfy the void of scarcity in SRTE literature with Pentaple Bottom Line (PBL) definition according to the rural touristic sector.