THE INFLUENCE OF SOCIAL CAPITAL ON SUBJECTIVE WELLBEING, A STRUCTURAL MODEL FOR THE WEAVING INDUSTRY IN BALI PROVINCE OF INDONESIA

Abstract Weaving industry in Bali is one of the creative industries that is based on local wisdom and, in general, is managed traditionally. Refer to these facts, the industry need to be developed with the concept of modern entrepreneurship (orange economy) in order to give more benefits for the actors. This study aims to analyze the influence of social capital on entrepreneurship orientation, business performance, and subjective wellbeing of weaving industry in Bali Province. In addition, the study is also directed to analyze the indirect effect of social capital on subjective wellbeing through the mediating effects of entrepreneurship orientation and business performance. Based on survey and structured interviews on 98 business actors in Bali weaving industry as well data analysis techniques using SEM-PLS with Smart PLS 3.0, it was found that social capital have positive and significant influence on entrepreneurship orientation, business performance, and subjective well-being of the weaving industry. Entrepreneurial orientation proved positively affects business performance and subjective wellbeing. In addition, social capital proved mediates business performance through entrepreneurship and this orientation also positively and significantly affect subjective well-being. Social capital also affects subjective wellbeing by mediation of entrepreneurial orientation and business performance. Keywords: Entrepreneurial orientation; social capital; subjective wellbeing; weaving industry, SEM