Simulation of Multiple Mediation Variables for Finding the Ideal Model to Improve the Performance of the Chicken Farming Business in Indonesia

The success of chicken farming can be assessed using performance indicators. The present study aimed to investigate internal and external environmental factors, entrepreneurial skills, innovation, financial management, and the business performance of chicken farms in the Penebel District, Indonesia. A total of 51 chicken farmers meeting the criteria were included as the study sample. Data collection methods included interviews, surveys, documentation, and literature review. The analysis employed quantitative descriptive methods, including simple tabulation and generalized structured component analysis software. The feasibility of the initial model was tested, and if any discrepancies were found, the model was re-specified and retested until it achieved overall goodness-of-fit criteria. The simulation model included 11 paths connecting variables. Five path coefficients demonstrated significant effects, while six did not. Significant effects were found between the internal environment and entrepreneurship, the external environment and entrepreneurship, the internal environment and innovation, the external environment and innovation, and the internal environment and financial management. The present findings indicated that entrepreneurship did not serve as a mediating variable. The internal and external environments significantly impacted farmers’ entrepreneurial skills. However, entrepreneurial skills did not significantly enhance business performance. Furthermore, internal and external factors influenced innovation, but innovation did not affect business performance.