Structural Modeling of the Role of Social Capital through Entrepreneurship Orientation on the Business Performance of Village Credit Institutions (LPD) in Jembrana Regency of Bali of Indonesia

LPD is a local wisdom that is managed by, from and for the special community in Bali. The current LPD business performance in Jembrana Regency is still relatively simple and has not used the concept of modern entrepreneurship. Through cooperative behavior, synergy and high entrepreneurial orientation in LPD managers, it is hoped that there will be an increase in the performance of LPD businesses in Jembrana Regency. The purpose of this research is to analyze the role of social capital of LPD managers through their entrepreneurial orientation towards the performance of LPD businesses in Jembrana Regency. Through a research sample of 98 respondents from LPD managers in Jembrana Regency (with the help of Smart PLS 3.0 software) the following results were obtained; (1) the social capital of the LPD manager directly plays a positive role and it is not significant to the LPD's business performance but significant to its entrepreneurial orientation, while entrepreneurial orientation has a positive and significant effect on LPD business performance, (2) through full mediation, entrepreneurial orientation, capital social in total has a positive and significant effect on LPD business performance in Jembrana Regency of Bali. The results of the study are expected to be able to provide an overview in formulating rural economic development strategies for LPD managers and supervisors in Jembrana Regency, Bali of Indonesia.