Factors Influencing Farmer’s Behavior in the Development of Sago Agroindustry in Riau Province (Indonesia)

The research examines the factors that influence farmers’ behavior in the development of the sago agroindustry. The development of the sago agroindustry offers significant potential for improving farmers’ welfare and contributing to national income. This study employs a mixed-method approach with a sequential explanatory model. The sample location was purposively selected, involving 100 farmers who also engage in agroindustrial activities. The data were analyzed using statistical methods, specifically Partial Least Square Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0 software. PLS-SEM provides more accurate results and deeper interpretations compared to traditional regression in situations where the constructs being measured are abstract, where mediation effects need to be explored, and where more flexibility is required for complex models. The variables used in this study include Partnership, Attitude, Subjective Norms, and Behavioral Control as independent variables, Intention as a mediating variable, and agroindustrial behavior as the dependent variable. Each variable has a different number of indicators. The findings of the study indicate that the concepts of the Theory of Planned Behavior (TPB) applied in this research show that the dimensions of attitude, social norms, and behavioral control play a crucial role in shaping farmers' intentions to develop the sago agroindustry. The addition of the partnership variable positively contributes to the success of product diversification in the sago agroindustry. However, this study also found that partnership does not significantly influence farmers' behavioral intentions. These findings recommend the need to strengthen partnerships and adopt a more inclusive and participatory approach in planning agroindustrial development programs.