Upstream decision to buy local products: how government role moderates the influence of product quality and capacity on intention to buy

This research aims to test and analyse the effect of product quality and capacity on the intention and decision to buy local products with the government's role as a moderating variable. This study takes a quantitative approach by collecting data through questionnaires distributed directly to 90 companies and then analysing them using structural equation modelling (SEM). The research results showed that product quality and capacity significantly influenced the intention to buy local products and the decision to buy local products, and the intention to buy local products had a significant positive effect on the decision to buy local products. Meanwhile, the government's role significantly moderates the influence of product quality and capacity on the decision to buy local products. The research introduces a novel dimension by unveiling the significant moderating government role in shaping the impact of product quality and capacity on the decision to buy local products.