Impacts of sociopreneurial behaviour on the community of dairy cooperative leaders and dairy smallholder farmers in Indonesia

The dairy farming industry in Indonesia is 90% dominated by smallholder farmers who face issues such as lack of capital, low productivity, insufficient profitability, and stagnant herd size growth. As smallholders, those farmers rely on dairy cooperatives for their farming activities. The Indonesian government initiated dairy cooperatives to connect farmers with milk processing companies (MPC) and other stakeholders to provide services and input. Besides, the government also deployed a "Blueprint Strategy for Dairy Sectors 2013 – 2025". Meanwhile, studies on the dairy farming business in Indonesia that involve dairy cooperatives have focused on the dairy supply chain. In contrast, the attention to the core business of dairy cooperatives as a social enterprise is overlooked. Thus, more empirical evidence is required from the sociopreneurship perspective to understand the behavior of dairy cooperative leaders. These leaders perform sociopreneurial behaviour (SEB), which can be understood as specific behavior conducted by individuals that produce tangible outcomes for society. However, most prior research on SEB formation is halted at sociopreneurial intention (SEI) as the dependent variable. Besides, they overlooked the role of external factors in the SEI and SEB relationship. Moreover, previous studies on the outcome of SEB focus on the wealth creation of its actors, which means the main impact on the community has yet to be verified. Therefore, this research aims to investigate the formation of SEB through the dairy cooperative leaders in Indonesia and the impact of the conducted behaviour on the smallholder dairy farmers' community and the leaders themselves. Thus, this thesis involves two characteristics of respondents: dairy cooperative leaders and smallholder dairy farmers. This study underpinned the theory of planned behaviour (TPB), the entrepreneurial event model (EEM), and the social entrepreneurial intention model (SEIM). Hardcopy questionnaires were distributed through a face-to-face approach. A purposive sampling collected valid responses from 112 dairy cooperative leaders and 364 smallholder dairy farmers in the East, Central and West Java provinces, Indonesia. Partial least squares-structural equation modeling (PLS-SEM) is adopted in testing the hypotheses. The result supported the model by confirming that empathy (EM), perceived social responsibility (PSR), and self-efficacy (SEFF) are significant predictors of SEI. Facilitating events (FE) significantly strengthens the conversion of SEI to SEB of dairy cooperative leaders. Finally, besides SEB significantly impacting community improvement (CIM) and individual farm performance (IFP), CIM also partially mediated the relationship between SEB and IFP. This thesis is significant for three main parties. For the literature, this thesis has validated the role of external factors in supporting the SEI conversion to SEB and confirming the impact of SEB according to the objective of sociopreneurship defined by academicians. For dairy cooperative leaders, this research provides guidelines for creating social business programs that benefit smallholder dairy farmers' community, themselves, and dairy cooperatives as institutions. This study provides empirical evidence for the government to evaluate the dairy sector's strategy related to dairy cooperatives' capacity. This research has limitations because it did not count the dairy cooperative leaders who are not smallholder dairy farmers themselves.

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