Determinants of Agribusiness MSME Cluster Performance in Central Java, 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 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 members of the agribusiness MSMEs cluster, selected proportionally across seven areas. Data analysis used the SEM method with PLS tools. The results of the study indicate that factors influencing the performance of agribusiness MSME clusters include collective efficiency, social capital, and socioeconomic benefits. Company performance does not affect MSME cluster performance. Collective efficiency influences social capital and socioeconomic benefits, while collective efficiency does not affect company performance. Social capital does not affect socioeconomic benefits and company performance. Socioeconomic benefits do affect company performance. Suggestions include strengthening collective efficiency, social capital, and socioeconomic benefits, which influence the performance of agribusiness MSME clusters. Strengthening collective efficiency is necessary to improve the performance of agribusiness MSME clusters. Strengthening social capital and socioeconomic benefits will further boost the performance of agribusiness MSME clusters. Social capital is strengthened when collective efficiency is also improved. Improved social capital will increase socioeconomic benefits. Improved collective efficiency will increase socioeconomic benefits. Stronger socioeconomic benefits will boost company performance.