STRUCTURAL MODEL OF SOCIAL CAPITAL ROLE THROUGH ORIENTATION OF ENTREPRENEURSHIP TO THE PERFORMANCE OF VILLAGE CREDIT INSTITUTIONS (LPD) IN JEMBRANA DISTRICT, BALI

Village Credit Institutions (LPD) are traditional and cultural village-based microfinance institutions, which are specific in existence and developing in the Province of Bali (Bali Province Regulation No.8 Tahaun 2002). LPD is one of the local wisdoms managed by, from and for the community (traditional village manners). LPD plays an important role in the development of rural economy for traditional village manners, but its management and performance is still not evenly distributed for all LPDs in Bali, as well as in Jembrana Kabuapaten.

The current performance of LPD businesses in Jembrana Regency has not been able to play an optimal role because most of the management is still relatively simple and has not used the concept of modern entrepreneurship. It is necessary to involve the role of social capital in increasing entrepreneurial orientation in LPD managers and management. Social capital functions to overcome various kinds of collective barriers in a business field, including entrepreneurial orientation. On the other hand, customary villages give birth to various forms of social capital ranging from awig-awig (adat law) social trust, networking and a sense of togetherness among fellow citizens . Through cooperative behavior, synergy and high entrepreneurial orientation in LPD managers, it is expected that there will be an increase in LPD business performance in Jembrana Regency.

Therefore, it is necessary to analyze comprehensively the role of LPD managers' social capital through their entrepreneurial orientation towards LPD business performance in Jembrana Regency. One basic analysis involving social variables (latent variables) is Structural Equation Modeling (SEM: Structural Equation Modeling). The structured model as a result of the study and analysis obtained from this research is expected to be able to provide an overview in developing rural economic development strategies, coaching and training for LPD managers and supervisors in Jembrana Regency, Bali.