EFFECT OF PRODUCTION AND E-COMMERCE FACTORS ON INCOME ALPAKA JEWELRY Craftsmen IN GIANYAR DISTRICT.

Alpaca handicraft is a product of accessories as a substitute for gold and silver jewelry, developing rapidly in Gianyar. This jewelry is very popular with the Balinese people as a complement to traditional clothing, and the price is relatively cheap. The impact of this handicraft business leads to an increase in income, welfare and socio-economy in the order of life of rural communities. The study was conducted in Gianyar, using the census method with a population of 77 business units. The research objective is to analyze the effect of factors of production (capital, labor costs, and materials) on the income of craftsmen, moderated by e-commerce variables. The type of data needed is primary data and collected by distributing questionnaires to respondents. Data were analyzed with Moderating Regression analysis. The results of the analysis found that simultaneously the factors of production and e-commerce had a significant effect on the income of craftsmen. e-commerce has a significant role in moderating the simultaneous influence of factors of production on the income of craftsmen. This means that the regression model can be used to predict alpaca jewelry craftsman income. Partial test shows the influence of venture capital, raw materials and labor is significant on the income of craftsmen. However, the role of e-commerce variables as pure moderation (Pure Moderator) the partial effect of venture capital on income, and as pseudo moderation (Quasi Moderator) the effect of raw materials on income. While the effect of labor costs on craftsman income, the role of e-commerce is only as a potential moderation (Homologiser Moderator). Research recommends that the use of social networks or e-commerce sites need to be utilized in marketing alpaca handicraft products to anticipate industry 4.0.