How Does Social Capital Offering Economic Development Based on Pesantren Business Units? (original) (raw)

How is Social Capital Converted to be Economic Capital? A Case Study from Pesantren’s Socio-Economic Projects

Al Izzah: Jurnal Hasil hasil Penelitian, 2019

There is an increasing trend among Indonesian Islamic boarding schools or locally called pesantren to address the socioeconomic problems of their neighbouring communities. Over the last two decades, many pesantren have articulated that concern through operating Islamic microfinance business or popularly called BMT (Baitul Maal wat Tamwil) and other enterprise forms. However, the majority of those initiatives are not financially developing. Pesantren Sidogiri is among a few of those exhibit business success and relatively significant social benefits to the Pesantren as well as its graduates. Based on fieldwork findings and the employment of social capital theory, this paper argues that the success of Pesantren Sidogiri's three business hubs (Kopontren Sidogiri, BMT MMU, BMT UGT) is because the Pesantren has successfully mobilised and managed its rich social capital which is embedded in the Pesantren's social networks. That social networks have constantly been managed and developed through appropriable social organisations and closure of social networks. The former is evident in the Pesantren's program of Affiliating Madrasah (madrasah ranting) and Teacher-Internship (guru tugas), while the latter in the Alumni Association (himpunan alumni) and the publication of monthly-Bulletin Sidogiri. These two streams have intentionally or unintentionally provided the Pesantren with a ready-use of social capital to be converted as economic capital in its economic projects. Abstrak Terdapat trend yang meningkat di kalangan pesantren untuk turut menjawab masalah social-ekonomi masyarakat di sekitarnya. Dalam dua decade terakhir, banyak pesantren telah mencurahkan perhatian mereka melalui lembaga keuangan Islam atau BMT (Baitul Maal wat Tamwil) dan berbagai bentuk usaha lain. Kendati demikian, mayoritas inisiatif semacam itu tidak berkembang secara keuangan. Pesantren Sidogiri di Pasuruan, Jawa Timur adalah salah satu dari sedikit yang sukses dan menunjukkan kemanfaatan social signifikan bagi Pesantren tersebut beserta alumninya. Berdasarkan temuan riset lapangan dan penggunaan teori modal social, artikel ini berargumen bahwa kesuksesan tiga unit usaha Pesantren Sidogiri (Kopontren Sidogiri, BMT MMU, BMT UGT) adalah karena Pesantren ini berhasil memobilisasi dan mengelola modal sosialnya yang begitu kaya, yang terkandung dalam jaringan social Pesantren ini. Jaringan

Bonding Social Capital as a Milestone for Village-Owned Enterprises Existence (a Study of BUM Desa Kerjaya Krasa, Krocok Village, Japah District, Blora Regency)

Journal Research of Social, Science, Economics, and Management

The Indonesian Government is currently trying to intensify the establishment and development of BUM Village to increase village income. The existence of BUM Village is expected to be a pillar of the village community’s economy, so that the existence of BUM Village needs to be maintained and further considered. The management of BUM Village is carried out by the village government together with the community, based on these reasons it is important to conduct further research on social processes related to the existence of bonding social capital in the development of BUM Village. One of the BUM Village that can maintain its existence is BUM Village Kerjaya Krasa, established in 2017. This paper aims to analyze the development and role of bonding social capital in BUM Village Kerjaya Krasa. The research was conducted qualitatively through in-depth interviews, observation, and documentation. The structural dimensions of social capital found are related to the good relationship between t...

Social Capital in Enhancing Community Economy: The Case of Muhammadiyah Boarding School (MBS) Sleman Prambhanan, Yogyakarta

Humanities & Social Sciences Reviews

Purpose of the study: This study examines the role of social capital in enhancing community economy as reflected in the case of pasentran MBS Sleman, Prambhanan, Yogyakarta. Specifically, it reports the preliminary data collected during fieldwork conducted at Pasentran MBS Sleman, Prambhanan, Yogyakartaon July 26, 2018. Subsequently, it focuses on the potential and relevance of social capital in the sustainable development agenda at the community level as reflected in the case of MBS Sleman. Methods: This study utilizes a qualitative research design using the case study and in-depth interviews with pasentran’s top management, observation, and document research. By adopting a case study method and an interpretative approach to data analysis this study explores the underpinning determinants of successful local level development from socio-economic sustainability perspectives. Findings: Researchers found that MBS Sleman has been on the right track in implementing the agenda of sustaina...

The Role of Social Capital in Improving Quality Village- Owned Enterprises (BUMDES)

Randwick International of Social Science Journal

This study aims to determine the role of social capital in improve the quality of BUMDes through the management of the Aek Parulian bathing tourism object in Sipan Village, Sarudik District, Central Tapanuli Regency. The research method used is descriptive qualitative, the use of this research method is to describe the data results from research in the field. The subjects in the study were the Sipan Village Head, BUMDes Management and Managers, and the Sipan Village community. Types of data in this study primary data and secondary data. Data collection techniques used are observation, interviews, and documentation. Data analysis techniques used in this study are data reduction, data presentation, and drawing conclusions. Based on the results of the study, it shows that social capital has a role in the establishment of Gabe BUMDes and the management of Unit Business of Aek Parulian bath in Sipan Village. The elements of social networks and trust have a bigger role, namely the existen...

Social Capital and the Sustainability of KUD Business in Donggala District, Indonesia

Journal of Asian Multicultural Research for Economy and Management Study, 2021

This study aims to identify the social capital, co-production, and sustainability of KUD (Village Unit Cooperatives) business. It used descriptive research design using primary data obtained from KUD administrators and KUD members through the focus group discussion (FGD). It used FGD because in general KUD activities stopped after being affected by the natural disasters on September 28, 2018, and during the Covid 19 pandemic so that most of the KUD administrators and members were inactive and difficult to find. The findings of this study showed that (1) some KUD businesses have decreased the number of active KUD members, reduced income and SHU (net income) of KUD members due to the natural disasters that damage property and livelihoods of community members, especially members of KUD; (2) The active participation of KUD members has significantly decreased; (3) Only half of the number of KUDs are still running their activities; and (4) Overal, the social capital, co-production, and su...

Dynamics of the Social Capital in Increasing the Competitiveness of the Riau Malay Woven Fabric Pekanbaru

Proceedings of International Conference on Economics Business and Government Challenges

The interaction of group participation from the social capital activity of the Riau Malay woven fabric IKM business group in Pekanbaru is intertwined with group participation, which continues to form a strong network. This research uses a qualitative case study approach to analyze the dynamics of the role of social capital to increase the competitiveness of Riau Malay woven fabric SMEs in Pekanbaru. Data collection techniques using observation, interviews, and documentation. Purposive sampling was used in determining informants and triangulation technique used. The role of social capital in the Riau Malay Woven Fabric industry in Pekanbaru was found in the research results. It showed a strong social bonding because they had the same kinship and ethnic Malay Islam, so social interaction was formed on a sense of togetherness, empathy, and firm trust. The implications are contributing empirically and relevant theories to the development of social capital as a competitive strategy. Keyw...

Social Capital Strengthening Strategy for Maintaining Investment Sustainability in Lumajang Regency

Lumajang Regency has various potentials to be developed. The geographical condition of the region as one of the potentials should be able to increase the regional income through investments. On the other hand, it has been identified that investment level and regional income have decreased. Based on field research, it is caused by global economic changes (interest, electricity, tax, etc.) and crimes. However, other conditions also exist. For example, there are some investors with no business declining using social capital strength. This study aims to uncover the strategy of social capital strengthening for maintaining investment sustainability in Lumajang Regency. This research employs qualitative phenomenology method. The results of this research indicate that there are two strategies used by investors for maintaining their business in the uncertain condition in Lumajang. First, Personal-Branding Strategy (PBS) is a strategy using personal approach by persuasive ways to create bounding social capital. Meanwhile, Self-Esteem Approach Strategy (SEAS) is a strategy using job competency and power to create linking social capital. This strategy can be used by the existing investors to restart or maintain their business in Lumajang; it can also become one of considerations of potential investors on what they must do to reach sustainable and profitable business in Lumajang Regency.

Social Capital and Failure in Village- Owned Enterprises: A Case Study of Cangkudu Village, Balaraja District, Banten-Indonesia

research , 2019

A Village-Owned Enterprise (VOE) is a commercial institution established for the service of rural communities. This business entity involves a number of people with one common goal. The sustainability of such an institution at the rural level is influenced by many factors, including good relations between government and business entity managers based on strong social capital. This study aims to analyse social capital in the management communications of the VOE in Cangkudu Village, Banten. The results show that the VOE in Cangkudu Village was frozen due to several things, namely: (1) the trust between the management and the village government is low, so institutionally there was a disconnect between the communication and coordination networks in Cangkudu Village; (2) The VOE managers tried to free themselves from the intervention of the Cangkudu Village government; (3) There was a violation of the norm by the manager, especially regarding the loss of communication and coordination or reporting of the VOE activities to the Village Head as the commissioner of the business entity. Thus, the stagnation of the VOE in Cangkudu Village is due to the lack of social capital existing between the village manager and the government.

The Role of Social Capital on Rural Enterprises Economic Performance: A Case Study in Indonesia Villages

SAGE Open

Following the nationwide implementation of the Village Funds, the government attempted to accelerate rural economic growth through rural enterprises ( Badan Usaha Milik Desa/BUMDes). This study aimed to analyze how social capital affects village-owned enterprise management to accelerate rural economy. This study was conducted in 2018 and applied a qualitative approach and case study design with a content analysis method derived from interviews, observations, and legal documents. The analysis shows that stakeholders’ development visions to initiate the establishment are critical to determining the management and cooperation of rural enterprises, especially regarding the common direction of development. This study’s results show that, presently, rural enterprises have a low impact on rural economic growth. This study also argues for policy implications by highlighting the importance of social capital and village local assets to determine BUMDes development in Indonesia. Specifically, ...

Social Capital and Economic Development: Learning From Kasih Sayang Village

Proceedings of the International Conference on Social Studies and Environmental Issues (ICOSSEI 2019), 2020

Economic development generally relies on economic capital as the main determinant of economic growth. Whereas social capital such as the spirit of cooperation, mutual cooperation, and love can also be used as development capital. This study aims to explain whether social capital (love) can be used to drive the economy. It uses the qualitative approach where Kasih Sayang Village, also known as Perkampungan Majelis Ta'lim Fardhu 'Ain (MAFTA) is chosen as the research location. With the goal to explore how Kasih Sayang Village empowers economy by using social capital, the findings reveal that Kasih Sayang Village community constructs their economy through the basis of mutual understanding about the bond of love among all community. With that understanding, they manage many potential economic resources to fullfill community needs with a principle: from, by and for the sake of the community. The use of social capital appears to be effective in making Kasih Sayang Village as one of an economically selfsufficient villages in North Sumatra.