Haryono Haryono

The Role of Government Policy, Technology Adoption, and Rural Entrepreneurship in Enhancing Economic Development in Villages in Indonesia

Introduction

The role of government policy, technology adoption, and rural entrepreneurship in enhancing economic development in villages in indonesia. Examines government policy, technology, and rural entrepreneurship's role in boosting economic development in Indonesian villages. Offers insights for sustainable rural growth and policymakers.

Abstract

This study examines the roles of government policy, technology adoption, and rural entrepreneurship in enhancing economic development in Indonesian villages. Using a quantitative approach, data were collected from 200 respondents through a structured questionnaire employing a 5-point Likert scale. The data were analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS 3) to test the hypothesized relationships. Results indicate that government policy significantly influences technology adoption, rural entrepreneurship, and economic development. Technology adoption positively affects both rural entrepreneurship and economic development, while rural entrepreneurship strongly drives economic development and partially mediates the effect of technology adoption on economic outcomes. These findings highlight the importance of integrated interventions that combine supportive policies, technological empowerment, and entrepreneurial initiatives to foster sustainable rural growth. The study provides practical insights for policymakers, development practitioners, and village leaders aiming to enhance the socio-economic well-being of rural communities.

Review

This study investigates the crucial interplay of government policy, technology adoption, and rural entrepreneurship in fostering economic development within Indonesian villages. The chosen topic is highly relevant, addressing a significant development challenge in a developing nation where rural areas often lag in economic progress. By focusing on these three interconnected pillars, the research posits a comprehensive framework for understanding how external support and internal initiatives can collectively drive socio-economic improvement. The abstract clearly articulates the study's objective, setting the stage for an analysis of both direct and indirect influences on village-level economic development. Methodologically, the study employs a quantitative approach, gathering data from 200 respondents using a structured questionnaire with a 5-point Likert scale. The application of Structural Equation Modeling with Partial Least Squares (SEM-PLS 3) for data analysis is appropriate for testing the complex hypothesized relationships among the latent variables. The results are compelling, indicating that government policy plays a foundational role, significantly influencing technology adoption, rural entrepreneurship, and economic development directly. Furthermore, technology adoption emerges as a positive driver for both entrepreneurship and economic development, with rural entrepreneurship identified as a strong direct contributor to economic outcomes. The finding that rural entrepreneurship partially mediates the effect of technology adoption on economic development adds a nuanced understanding of the causal pathways. The findings offer significant practical insights for various stakeholders. The emphasis on integrated interventions—combining supportive policies, technological empowerment, and entrepreneurial initiatives—provides a clear directive for policymakers, development practitioners, and village leaders. This comprehensive approach is crucial for designing effective strategies aimed at sustainable rural growth and enhancing the socio-economic well-being of rural communities in Indonesia and potentially other developing contexts. The study's contribution lies in empirically validating these relationships within a specific national context, thereby reinforcing the importance of multi-faceted development strategies.

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