The Role of Community Empowerment as Mediator on the Relationship Between Psychological, Social, and Financial Capital on Rural Community Well-Being

Main Article Content

Sarjiyanto Sarjiyanto
Sarwoto Sarwoto
Paska Ellena Dio
Jaelani Abdul Kadir
R. B. Radin Firdaus

Abstract

Community well-being is a key indicator of successful development. Community empowerment is a pivotal strategy for significantly boosting well-being, with primary goals to enhance community capacity and leverage various forms of existing capital within the community, including psychological, social, and financial capital, particularly in rural areas. This investigation focuses on how psychological, social, and financial capital enhance community well-being. This study employed a quantitative approach to explore the impact of an empowerment program in Karangasem village, Sukoharjo, Central Java. Data was gathered through questionnaires, with responses from 255 community beneficiaries. To analyze the data, SEM-PLS was utilized, leveraging the advanced capabilities of Smart PLS software, and the study reveals that while these forms of capital alone do not significantly impact well-being, their positive effects are amplified when mediated by community empowerment programs. Empowerment initiatives optimize community resources, enhancing capacity, productivity, and social networks, ultimately reducing poverty and rural development. The findings underscore the importance of integrated empowerment strategies in leveraging community capital for sustainable well-being improvements.

Article Details

How to Cite
Sarjiyanto, S., Sarwoto, S., Ellena Dio, P., Abdul Kadir, J., & Radin Firdaus, R. B. (2025). The Role of Community Empowerment as Mediator on the Relationship Between Psychological, Social, and Financial Capital on Rural Community Well-Being. Journal of Population and Social Studies [JPSS], 34(-), 99–117. retrieved from https://so03.tci-thaijo.org/index.php/jpss/article/view/280584
Section
Research Articles
Author Biography

Sarjiyanto Sarjiyanto, Faculty Economic and Business, Universitas Sebelas Maret, Surakarta, Indonesia

Corresponding author

References

• Ahmad, M. S., & Abu Talib, N. B. (2015). Empowering local communities: decentralization, empowerment, and community-driven development. Quality and Quantity, 49(2), 827–838. https://doi.org/10.1007/s11135-014-0025-8

• Ahmad, M. S., & Abu Talib, N. B. (2016). Analysis of community empowerment on projects sustainability: Moderating role of sense of community. Social Indicators Research, 129(3), 1039–1056. https://doi.org/10.1007/s11205-014-0781-9

• Andriani, E. (2022). Optimization of village funds with the development of village-owned enterprises (BUMDes) towards an independent village in Maryke Plantation Village. Jurnal Ekonomi, 11(3), 1547–1553. https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/912

• Avey, J. B., Luthans, F., Smith, R. M., & Palmer, N. F. (2010). Impact of positive psychological capital on employee well-being over time. Journal of Occupational Health Psychology, 15(1), 17–28. https://doi.org/10.1037/a0016998

• Badaruddin, B., Kariono, K., Ermansyah, E., & Sudarwati, L. (2021). Village community empowerment through village owned enterprise based on social capital in North Sumatera. Asia Pacific Journal of Social Work and Development, 31(3), 163–175. https://doi.org/10.1080/02185385.2020.1765855

• Badaruddin, Kariono, Ermansyah, & Sudarwati, L. (2017, December). Community empowerment based on social capital and village business company (BUMDes). In Proceedings of the 2nd International Conference on Social and Political Development (ICOSOP 2017) (pp. 181–187). Atlantis Press. https://doi.org/10.2991/icosop-17.2018.27

• Çavuş, M. F., & Gökçen, A. (2015). Psychological capital: Definition, components and effects. British Journal of Education, Society & Behavioural Science, 5(3), 244–255. https://doi.org/10.9734/bjesbs/2015/12574

• Chawa, A. F., Kusumastuti, A., & Harjo, I. W. W. (2017). Scaling up model of social capital: Developing a model of empowerment for poor society in rural areas. IOP Conference Series: Earth and Environmental Science, 70, Article 012029. https://doi.org/10.1088/1755-1315/70/1/012029

• Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295–336). Lawrence Erlbaum Associates.

• Cloutier, S., Ehlenz, M. M., & Afinowich, R. (2019). Cultivating community wellbeing: Guiding principles for research and practice. International Journal of Community Well-Being, 2(3–4), 277–299. https://doi.org/10.1007/s42413-019-00033-x

• Del Arco, I., Ramos-Pla, A., Zsembinszki, G., Gracia, A. de, & Cabeza, L. F. (2021). Implementing SDGs to a sustainable rural village development from community empowerment: Linking energy, education, innovation, and research. Sustainability, 13(23), Article 12946. https://doi.org/10.3390/su132312946

• Dóci, E., Spruyt, B., De Moortel, D., Vanroelen, C., & Hofmans, J. (2023). In search of the social in psychological capital: Integrating psychological capital into a broader capital framework. Review of General Psychology, 27(3), 336–350. https://doi.org/10.1177/10892680231158791

• Dorji, T., Morrison-Saunders, A., & Blake, D. (2023). Understanding how community wellbeing is affected by climate change: Evidence from a systematic literature review. Environmental Management, 72(3), 568–586. https://doi.org/10.1007/s00267-023-01833-w

• Fahmi, F. Z., & Sari, I. D. (2020). Rural transformation, digitalisation and subjective wellbeing: A case study from Indonesia. Habitat International, 98, Article 102150. https://doi.org/10.1016/j.habitatint.2020.102150

• Fischer, A., & McKee, A. (2017). A question of capacities? Community resilience and empowerment between assets, abilities and relationships. Journal of Rural Studies, 54, 187–197. https://doi.org/10.1016/j.jrurstud.2017.06.020

• Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104

• Hair, J. F., Jr., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson.

• Hair, J. F., Jr., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer Cham. https://doi.org/10.1007/978-3-030-80519-7

• Halstead, J. M., Deller, S. C., & Leyden, K. M. (2022). Social capital and community development: Where do we go from here? Community Development, 53(1), 92–108. https://doi.org/10.1080/15575330.2021.1943696

• Handayani, E., Garad, A., Suyadi, A., & Tubastuvi, N. (2023). Increasing the performance of village services with good governance and participation. World Development Sustainability, 3, Article 100089. https://doi.org/10.1016/j.wds.2023.100089

• Handoyo, F., Hidayatina, A., & Purwanto, P. (2021). The effect of rural development on poverty gap, poverty severity and local economic growth in Indonesia. Jurnal Bina Praja, 13(3), 369–381. https://doi.org/10.21787/jbp.13.2021.369-381

• Kuhumba, S. K. (2018). Amartya Sen's capability approach as theoretical foundation of human development. Journal of Sociology and Development, 1(1), 127–145. https://www.ajol.info/index.php/jsd/article/view/216336

• Kurniawan, M. U., & Cahyono, A. E. (2020). The community empowerment program based on local potential through tourism village. IOP Conference Series: Earth and Environmental Science, 485(1), Article 012089. https://doi.org/10.1088/1755-1315/485/1/012089

• Luthans, F., & Youssef, C. M. (2004). Human, social, and now positive psychological capital management: Investing in people for competitive advantage. Organizational Dynamics, 33(2), 143–160. https://doi.org/10.1016/j.orgdyn.2004.01.003

• Malinowski, P., & Lim, H. J. (2015). Mindfulness at work: Positive affect, hope, and optimism mediate the relationship between dispositional mindfulness, work engagement, and well-being. Mindfulness, 6(6), 1250–1262. https://doi.org/10.1007/s12671-015-0388-5

• Mathew, P. V., & Nimmi, P. M. (2022). Sustainable tourism development: Discerning the impact of responsible tourism on community well-being. Journal of Hospitality and Tourism Insights, 5(5), 987–1001. https://doi.org/10.1108/JHTI-02-2021-0052

• McCrea, R., Walton, A., & Leonard, R. (2014). A conceptual framework for investigating community wellbeing and resilience. Rural Society, 23(3), 270–282. https://doi.org/10.1080/10371656.2014.11082070

• McCrea, R., Walton, A., & Leonard, R. (2019). Rural communities and unconventional gas development: What’s important for maintaining subjective community wellbeing and resilience over time? Journal of Rural Studies, 68, 87–99. https://doi.org/10.1016/j.jrurstud.2019.01.012

• Monkman, K., Miles, R., & Easton, P. (2007). The transformatory potential of a village empowerment program: The Tostan replication in Mali. Women’s Studies International Forum, 30(6), 451–464. https://doi.org/10.1016/j.wsif.2007.09.005

• Mulema, A. A., Boonabaana, B., Debevec, L., Nigussie, L., Alemu, M., & Kaaria, S. (2021). Spiraling up and down: Mapping women’s empowerment through agricultural interventions using the community capitals framework in rural Ethiopia. Community Development, 52(1), 113–130. https://doi.org/10.1080/15575330.2020.1838589

• Musa, H. D., Yacob, M. R., & Abdullah, A. M. (2019). Delphi exploration of subjective well-being indicators for strategic urban planning towards sustainable development in Malaysia. Journal of Urban Management, 8(1), 28–41. https://doi.org/10.1016/j.jum.2018.08.001

• Musavengane, R., & Kloppers, R. (2020). Social capital: An investment towards community resilience in the collaborative natural resources management of community-based tourism schemes. Tourism Management Perspectives, 34, Article 100654. https://doi.org/10.1016/j.tmp.2020.100654

• Niu, L., Lu, C., & Sun, R. (2023). The impact of livelihood capital on subjective well-being of new professional farmers: Evidence from China. Sustainability, 15(14), Article 11305. https://doi.org/10.3390/su151411305

• Nolzen, N. (2018). The concept of psychological capital: A comprehensive review. Management Review Quarterly, 68(3), 237–277. https://doi.org/10.1007/s11301-018-0138-6

• Nugroho, T. W., Hanani, N., Toiba, H., & Sujarwo, S. (2022). Promoting subjective well‐being among rural and urban residents in Indonesia: Does social capital matter? Sustainability, 14(4), Article 2375. https://doi.org/10.3390/su14042375

• Okun, O. (2020). The positive face of human capital, psychological capital, and well-being. In S. Hai-Shew (Ed.), Maintaining social well-being and meaningful work in a highly automated job market (pp. 145–170). IGI Global. https://doi.org/10.4018/978-1-7998-2509-8.ch006

• Onyx, J., & Bullen, P. (2000). Measuring social capital in five communities. The Journal of Applied Behavioral Science, 36(1), 23–42. https://doi.org/10.1177/0021886300361002

• Pathak, D., & Joshi, G. (2021). Impact of psychological capital and life satisfaction on organizational resilience during COVID-19: Indian tourism insights. Current Issues in Tourism, 24(17), 2398–2415. https://doi.org/10.1080/13683500.2020.1844643

• Philip, J., Newman, J., Bifelt, J., Brooks, C., & Rivkin, I. (2022). Role of social, cultural and symbolic capital for youth and community wellbeing in a rural Alaska Native community. Children and Youth Services Review, 137, Article 106459. https://doi.org/10.1016/j.childyouth.2022.106459

• Poortinga, W. (2012). Community resilience and health: The role of bonding, bridging, and linking aspects of social capital. Health and Place, 18(2), 286–295. https://doi.org/10.1016/j.healthplace.2011.09.017

• Poots, A., & Cassidy, T. (2020). Academic expectation, self-compassion, psychological capital, social support and student wellbeing. International Journal of Educational Research, 99, Article 101506. https://doi.org/10.1016/j.ijer.2019.101506

• Portela, M., Neira, I., & Salinas-Jiménez, M. del M. (2013). Social capital and subjective wellbeing in Europe: A new approach on social capital. Social Indicators Research, 114(2), 493–511. https://doi.org/10.1007/s11205-012-0158-x

• Putri, A. E., Khadijah, U. L. S., & Novianti, E. (2020). Community empowerment in the development of mangrove tourism in Batu Karas of Pangandaran, West Java. Geojournal of Tourism and Geosites, 31(3), 972–978. https://doi.org/10.30892/gtg.31306-529

• Rachmawatie, D., Rustiadi, E., Fauzi, A., & Juanda, B. (2021). Driving factors of community empowerment and development through renewable energy for electricity in Indonesia. International Journal of Energy Economics and Policy, 11(1), 326–332. https://doi.org/10.32479/ijeep.10533

• Rahman, M. A., & Siddik, M. A. (2019). Livelihood analysis of the char dwellers using capital asset framework. Journal of Environmental Science and Natural Resources, 11(1–2), 27–36. https://doi.org/10.3329/jesnr.v11i1-2.43362

• Ramón-Hidalgo, A. E., Kozak, R. A., Harshaw, H. W., & Tindall, D. B. (2018). Differential effects of cognitive and structural social capital on empowerment in two community ecotourism projects in Ghana. Society and Natural Resources, 31(1), 57–73. https://doi.org/10.1080/08941920.2017.1364454

• Rimmer, M. A., Larson, S., Lapong, I., Purnomo, A. H., Pong‐masak, P. R., Swanepoel, L., & Paul, N. A. (2021). Seaweed aquaculture in Indonesia contributes to social and economic aspects of livelihoods and community wellbeing. Sustainability, 13(19), Article 10946. https://doi.org/10.3390/su131910946

• Romaní Rivera, A., Gálvez-Mozo, A., & Tirado-Serrano, F. (2024). The imperative of happiness in positive psychology: Towards a psychopolitics of wellbeing. New Ideas in Psychology, 72, Article 101058. https://doi.org/10.1016/j.newideapsych.2023.101058

• Rustiadi, E., & Nasution, A. (2017). Can social capital investment reduce poverty in rural Indonesia? International Journal of Economics and Financial Issues, 7(2), 109–117. https://www.econjournals.com/index.php/ijefi/article/view/3904

• Sahoo, M. (2019). Structural equation modeling: Threshold criteria for assessing model fit. In V. K. Narayanan & D. G. Gopalan (Eds.), Methodological issues in management research: Advances, challenges, and the way ahead (pp. 269–276). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78973-973-220191016

• Santoso, A. B., Kurniawan, E., & Syifauddin, M. (2019). The development of eco-edutourism village in Mangrove Tapak forest area, Tugurejo, Tugu Sub-District as a community-based tourism. In Proceedings of the International Conference on Rural Studies in Asia (ICoRSIA 2018) (pp. 328–333). Atlantis Press. https://doi.org/10.2991/icorsia-18.2019.79

• Sarjiyanto, Sarwoto, & Darma, T. S. (2022). The sustainability of community empowerment as development strategies: The experience of Indonesia. International Journal of Multicultural and Multireligious Understanding, 9(3), 207–218. https://doi.org/10.18415/ijmmu.v9i3.3604

• Sarjiyanto, Sarwoto, Gunaratne, M. S., & Firdaus, R. B. R. (2023). Sustainable industry, culture and community development: A case study of Kampung Batik Laweyan, Indonesia. Journal of Sustainability Science and Management, 18(1), 163–180. https://doi.org/10.46754/jssm.2023.01.010

• Sen, A. (1999). Development as freedom. Oxford University Press.

• Story, W. T., Taleb, F., Ahasan, S. M. M., & Ali, N. A. (2015). Validating the measurement of social capital in Bangladesh: A cognitive approach. Qualitative Health Research, 25(6), 806–819. https://doi.org/10.1177/1049732315580106

• Sukmana, E., Brahmantyo, H., Mumin, A. T., Tinggi, S., & Trisakti, P. (2018). The influence of community participation, the role of village government, number of tourist visits, and village income on community welfare in Cibuntu and Citundun tourism villages. Tourism Research Journal, 2(2), 61–77. https://doi.org/10.30647/trj.v2i2.37

• Suminah, S., Anantanyu, S., Suwarto, S., Sugihardjo, S., & Padmaningrum, D. (2023). The influence of empowerment towards agricultural business actors' ability in Surakarta, Indonesia. Social Sciences, 12(2), Article 76. https://doi.org/10.3390/socsci12020076

• Surya, B., Suriani, S., Menne, F., Abubakar, H., Idris, M., Rasyidi, E. S., & Remmang, H. (2021). Community empowerment and utilization of renewable energy: Entrepreneurial perspective for community resilience based on sustainable management of slum settlements in Makassar city, Indonesia. Sustainability, 13(6), Article 3178. https://doi.org/10.3390/su13063178

• Tyne, W. P., Fletcher, D., Paine, N. J., & Stevinson, C. (2024). Employees’ experiences of outdoor adventure training on psychological capital and wellbeing: A mixed methods case study. Journal of Outdoor Recreation and Tourism, 46, Article 100761. https://doi.org/10.1016/j.jort.2024.100761

• van Leeuwen, B., & Földvári, P. (2016). The development of inequality and poverty in Indonesia, 1932–2008. Bulletin of Indonesian Economic Studies, 52(3), 379–402. https://doi.org/10.1080/00074918.2016.1184226

• Vinzi, V. E., Tenenhaus, M., & Amato, S. (2004). A global goodness-of-fit index for PLS structural equation modelling. Proceedings of the XLII SIS Scientific Meeting (pp. 739–742). https://www.sis-statistica.org/old/htdocs/files/pdf/atti/RSBa2004p739-742.pdf

• Wang, C., Zhang, T., Xu, W., Ruan, H., & Tang, J. (2021). Social capital, technological empowerment, and resilience in rural China. International Journal of Environmental Research and Public Health, 18(22), Article 11883. https://doi.org/10.3390/ijerph182211883

• Wani, M. D., Dada, Z. A., & Shah, S. A. (2024). The impact of community empowerment on sustainable tourism development and the mediation effect of local support: A structural equation modeling approach. Community Development, 55(1), 50–66. https://doi.org/10.1080/15575330.2022.2109703

• Widiatmaka, R. P., & Wibawani, S. (2022). The role of village-owned enterprises in improving the economy of the Nglurup village community, Sendang District, Tulungagung Regency. JPPUMA: Jurnal Ilmu Pemerintahan dan Sosial Politik UMA (Journal of Governance and Political UMA), 10(1), 12–20. https://doi.org/10.31289/jppuma.v10i1.5815

• Wijaya, A. F., Kuntariningsih, A., Sarwono, S., & Suryono, A. (2021). Malnutrition mitigation and community empowerment through the sustainable food reserve programme in Indonesia. Development in Practice, 31(1), 37–48. https://doi.org/10.1080/09614524.2020.1782845

• Yip, W., Subramanian, S. V., Mitchell, A. D., Lee, D. T. S., Wang, J., & Kawachi, I. (2007). Does social capital enhance health and well-being? Evidence from rural China. Social Science and Medicine, 64(1), 35–49. https://doi.org/10.1016/j.socscimed.2006.08.027

• Zelmiyanti, R., & Anita, L. (2015). Pengaruh budaya organisasi dan peran auditor internal terhadap pencegahan kecurangan dengan pelaksanaan sistem pengendalian internal sebagai variabel intervening [The influence of organizational culture and the role of internal auditors on fraud prevention with the implementation of an internal control system as an intervening variable]. Jurnal Akuntansi Keuangan dan Bisnis, 8, 1–15. https://jurnal.pcr.ac.id/index.php/jakb/article/view/38

• Zhang, L., Zhuang, Y., Ding, Y., & Liu, Z. (2023). Infrastructure and poverty reduction: Assessing the dynamic impact of Chinese infrastructure investment in sub-Saharan Africa. Journal of Asian Economics, 84(2699), Article 101573. https://doi.org/10.1016/j.asieco.2022.101573