Determinant factors of agribusiness MSMEs Cluster Performance in Central Java Province, Indonesia

This study focuses on the factors influencing the performance of agribusiness MSME clusters in Central Java Province, an area that has not been previously studied. The novelty of this study lies in the use of cluster performance variables and indicators that differ from those in previous studies. This study uses a descriptive analytical method. The research locations were determined purposively, specifically in Pati Regency, Rembang, Demak, Purbalingga, Pekalongan, Sukoharjo, and Magelang City, which have a larger number of agribusiness MSME clusters compared to other regions. The research sample consisted of 251 agribusiness MSMEs, selected proportionally across seven areas. Data analysis used the SEM method with PLS tools. The results of the study indicate that social capital is the factor influencing the performance of agribusiness MSME clusters. Social capital drives the performance of agribusiness MSME clusters. While collective efficiency, social and economic benefits, and MSME performance do not affect the performance of agribusiness MSME clusters. Collective efficiency influences social capital, meaning that collective efficiency drives the development of social capital. Additionally, collective efficiency also influences socioeconomic benefits, indicating that collective efficiency drives socioeconomic benefits. However, collective efficiency does not affect MSME performance. Social capital influences socioeconomic benefits, meaning that it drives these benefits; however, social capital does not directly affect MSME performance. Socioeconomic benefits influence the performance of MSMEs, which means that socioeconomic benefits drive their performance.