PJAR_38_4

Introduction

Village development must be pursued in order to improve the quality of life of the community and the welfare of the community, one of which needs to be built or processed in the village to accelerate the economic level, namely by establishing village-owned business entities. Village-Owned Enterprises (BUMDes) are economic entities formed by villages and managed independently to manage local potential to improve the welfare of village communities (Arifin et al., 2020; Kania et al., 2021; Hilmawan et al., 2023). As an institutional instrument mandated by Law Number 6 of 2014 concerning Villages, BUMDes has a strategic role in strengthening the rural economic structure through resource management. Managing BUMDEs is the same as managing businesses in general, so technopreneurs who start businesses must rely on innovation (Umar et al., 2023; Syafaruddin et al., 2024). One of the important aspects of good BUMDes governance is the ability of the BUMDes in terms of marketing, where marketing is the spearhead for BUMDes in obtaining good sales results and profits that are in line with expectations (Ibrahim, 2025).

Most village-owned enterprises (BUMDes) in the Tomini Bay area of Gorontalo Province focus on developing business units in the agricultural sector. This aligns with the region’s agrarian nature, where agriculture serves as the primary source of livelihood for local communities. However, in reality, BUMDes still encounter numerous challenges in marketing their agricultural products effectively, which requires serious optimization efforts. Marketing is a strategic process involving goal setting, planning, execution, and evaluation to achieve organizational targets. (Tjiptono, 2019; Kango et al., 2023; Asari et al., 2023). Marketing performance reflects the effectiveness of these activities, typically measured by increased sales or customer satisfaction (Hasim et al., 2022; Santana et al., 2023; Kowiloy et al., 2023). Market-oriented business entities with strong marketing capabilities, such as the use of experiential marketing, are better positioned to deliver meaningful and memorable experiences to consumers (Kango et al., 2020), so that it has an impact on achieving marketing performance.

Various factors can affect the marketing performance of BUMDes, including the ability of human resources, policy support, access to market information, innovative behavior of managers, and the strength of social capital in the community (Marolt et al., 2020; Maksum et al., 2020; Makmur et al., 2024; Li and Wang, 2025). One of the strategies that can be maximized by a business is by optimizing innovative behavior and social capital. Innovative behavior is an activity carried out by individuals or groups to find solutions to a problem by finding creative ideas that are applied (Abbasi et al., 2024). Innovative behavior is a talent that must be managed or optimized (Machmud et al., 2022). Innovative behavior in this case includes the ability of BUMDes to develop creative ideas to increase the selling value of products, create an efficient distribution system, and utilize digital platforms in marketing products (Poretti et al., 2024). Innovation is the key to responding to changing market needs and increasing business competitiveness (Amrullah et al., 2023).

Another factor is Social Capital which is a resource in the form of a work network that has knowledge of values, norms, and social or institutional structures that have a spirit of cooperation that will have positive implications for productivity (Hutapea et al., 2016; Rahmatiah, 2017; Effendi et al., 2023). Entrepreneurs are starting to think about complementing or supporting each other’s activities through mutually beneficial cooperation (Ashari and Mawardi, 2018), including in terms of good negotiations (Juana et al., 2023). Strong social capital allows for collaboration between farmers, BUMDes managers, and external parties such as cooperatives, MSMEs, and other market players. The existence of social capital can also strengthen the legitimacy of BUMDes in the eyes of the public and expand the reach of marketing through existing informal networks. The relationship between innovative behavior and social capital is not something that stands alone, but can reinforce each other. Social capital is a moderation variable that strengthens the influence of innovative behavior on the marketing performance of BUMDes. This means that innovations carried out by managers will be more effective in improving marketing performance if they are supported by a cohesive social environment, full of trust, and open to collaboration (Minhas and Sindakis, 2022; Van Tran et al., 2024).

Related to the marketing performance of BUMDes, this research was conducted in the Tomini Bay area, Gorontalo Province. BUMDes in the Tomini Bay Area, Gorontalo Province generally focus on the agricultural sector, including activities such as the sale of agricultural production facilities, processing agricultural products, financing farming businesses, and direct purchases of crops from farmers. This business pattern reflects the efforts of BUMDes in strengthening the village agricultural value chain and supporting the welfare of farmers in a more sustainable manner. The selection of business segments in the agricultural sector by BUMDes not only strengthens the village economy, but also plays a strategic role in reducing farmers’ dependence on middlemen. By purchasing crops directly from farmers and providing access to financing and production facilities, BUMDes help create a more equitable and profitable marketing system for farmers so that they can improve agricultural development and the welfare of farming communities.

The dominance of BUMDes in Gorontalo Province businesses in the agricultural sector stems from abundant natural resources, steady local market demand, and strong cultural alignment. However, this sector is also vulnerable to crop failure risks, price fluctuations, and limited managerial innovation, which pose challenges to sustainability. The basis for choosing the location is due to findings in the field based on the results of observations made by researchers that the management of BUMDes has not been running optimally and the ability to obtain profits has not been so maximized and some even experience losses that have an impact on the sustainability of BUMDes. BUMDes management activities are also still experiencing obstacles in terms of the implementation process where the products produced or services offered still do not meet the elements of innovative innovation so that they can become a competitive advantage for BUMDes. BUMDes are still not optimal in partnerships with various partners, such as farmers so that BUMDes processed products can be cheaper or BUMDes can take advantage of the marketing margin of these agricultural products, BUMDes still lack cooperation with various parties from across sectors. The crucial problem regarding BMDes in Gorontalo Province is based on data from each Community and Village Empowerment Office in each Regency/City in Gorontalo Province, namely around 48.78% of BUMDes that are actively carrying out business activities to improve the village economy. Meanwhile, 51.22% tend to be less active or require additional capital participation in order to carry out operations or in this case the performance of BUMDes is not good, especially in terms of business marketing.

This study offers a novelty by integrating Importance Performance Analysis (IPA) and Moderated Regression Analysis (MRA) using SEM-PLS to evaluate the marketing performance of agricultural products in BUMDes, an approach rarely applied in previous studies. Most prior research has explored the impact of either innovative behavior (Wulandari and Wardani, 2024) or social capital (Yasni et al., 2023) in isolation, without examining their interactive influence as a moderating variable. This study adds value by incorporating local elements such as traditional wisdom and community trust to strengthen marketing strategies (Kasumaningrum et al., 2024). Furthermore, it highlights the role of external stakeholders like village facilitators and local governments an aspect often overlooked (Syahza et al., 2021; Juniasih et al., 2019). Therefore, the contextual and analytical depth of this study offers more applicable insights for BUMDes in agrarian regions such as Tomini Bay, Gorontalo Province.

This study aims to analyze (1) how the marketing performance of agricultural products in BUMDes, innovative behavior and social capital and (2) how the influence of innovative behavior moderated by Social Capital on the marketing performance of agricultural products in BUMDes.

Materials and Methods

Marketing performance of agricultural products in BUMDes

BUMDes, or Village-Owned Enterprises, are economic institutions established by village governments and jointly managed with local communities to address village needs and stimulate economic development (Asrul and Majid, 2025). Marketing performance refers to the level of success achieved from a company’s entire marketing activities (Nicolescu and Rîpa, 2024; Gong et al., 2025). It is commonly used to evaluate how well a product performs in the market and how effectively it meets customer expectations. Marketing performance indicators are (1) sales volume, (2) customer growth, (3) profitability, (4) reach of marketing areas (Sambo and Okenyi, 2024; Djamila and Nuvriasari, 2025).

Innovative behavior

Innovative behavior in the workplace involves seeking out opportunities and generating new ideas. It also includes the ability to apply fresh knowledge and implement creative solutions in daily operations to enhance both individual and organizational performance (Gavrila et al., 2025). According to De Jong and Hartog (2010) there are 4 (four) dimensions of innovative work behavior, namely (1) exploration of ideas, (2) the development of ideas, (3) the fight for ideas, (4) the implementation of ideas.

Social capital

Social capital refers to the economic value derived from individuals knowledge, skills, innovation, energy, and commitment, which are manifested through shared trust, mutual recognition, and strong social networks. These relationships provide collective support that benefits all members within a community or organization (Rahmatiah, 2017; Ashari and Mawardi, 2018). Social capital is measured by 4 indicators, namely (1) social trust, (2) social norms, (3) social networks, (4) local wisdom (Tangio, 2021).

Research approach

The approach in this study is the mix method approach with Sequential explanatory designs. Mix method Sequential explanatory designs are mixed research methods that combine quantitative and qualitative methods gradually (Sugiyono, 2023). The mix method with a sequential explanatory design is crucial as it enables researchers to obtain a comprehensive view, quantitative data reveals general patterns, while qualitative insights uncover contextual meanings and deeper factors influencing the findings.

Settings

The population in this study consists of village governments and BUMDes managers spread across the Tomini Bay Area, Gorontalo Province. The research was conducted over a period of five months, from June 2024 to November 2024. The village government can be represented by the village head, or the village secretary. Meanwhile, the BUMDes manager can be represented by the chairman or director of BUMDes or the operational manager of the BUMDes. Then to strengthen the results of the study of the quantitative findings, an informant for the interview (qualitative data) was also determined, namely the head of the community and village empowerment office in the Regency/City in Gorontalo Province which could also be represented by the secretary of the service or the head of the village government sector. All scenarios are carried out according to the stages of the Sequential explanatory designs research for better credibility of the research results.

Population and sampling

The population in this study is 683 BUMDes spread across Regencies/Cities throughout Gorontalo Province which are included in the Tomini Bay area. Sample determination using the Slovin formula with a 5% error obtained a sample of 334.66 or rounded into 335 BUMDes, where each village is represented by 3 people consisting of 1 village head and 2 people from the BUMDes.

Data collection

In general, there are four types of data collection techniques, namely observation, interviews, and questionnaires and Focus Group Discussions (FGD). In this study, the questionnaire used is based on a Likert scale model. Specifically, for the Importance Performance Analysis (IPA), the questionnaire applies a dual-condition Likert scale, where each item includes two response columns: One reflecting the expectation (importance) and the other reflecting the perceived reality (performance).

Data analysis

Importance performance analysis (IPA): Importance Performance Analysis (IPA) is an analytical method used to compare the importance (expectation) and performance (reality) of certain attributes or services, aiming to identify areas for improvement and support strategic decision-making (Babalola, 2023; Aryani et al., 2025). IPA analysis is science analysis to obtain a description of the marketing performance of agricultural products in BUMDes. This IPA analysis is based on the aspect of importance (target) which is then compared with the performance or realization aspect of BUMDes in the Tomini Bay area, Gorontalo Province. The IPA analysis, as illustrated in Figure 1, consists of four quadrants (Chi et al., 2025): Quadrant 1 is concentrate here (high importance-low performance), Quadrant 2 is keep up the good work (high importance-high performance), Quadrant 3 is low priority (low importance-low performance), and Quadrant 4 is possible overkill (low importance-high performance).

Structural equition modelling (SEM) partial least square (PLS) model moderated regression analysis (MRA): The SEM PLS analysis of the MRA model is an SEM analysis that in its equation contains an interaction between the independent variable and the moderation variable which can be seen whether the moderation variable is able to strengthen or weaken the influence of the free variable on the dependent variable (Sheidai et al., 2024; Khulsum et al., 2025; Ul-Haq et al., 2025). The SEM PLS analysis of the MRA model in this study was used to test three hypotheses: the influence of innovative behavior on marketing performance, the influence of social capital on marketing performance, and the influence of the interaction between social capital and innovative behavior on marketing performance. The MRA formula is as follows:

Y = α + β1X1 + β2X2 + β3M + ε

Information: Y = BUMDes Marketing Performance; α= Constant; β= Regression coefficient; X1= Innovative Behavior; X2= Social Capital; M= Social Capital’s Interaction with Innovative Behavior; ε = Error Rate (Error).

Results and Discussion

Descriptive analysis of science

The results of descriptive analysis through science analysis for each variable in this study are presented as follows:

Innovative behavior variables

The results of the science analysis of innovative behavior in the Tomini Bay Area, Gorontalo Province can be presented in Figure 2.

Figure 2 shows that the results of the IPA analysis of innovative behavior in BUMDes in the Tomini Bay Area, the indicator of idea exploration is classified in quadrant 4 (Possible Overkill). This indicates that resources are too focused on idea-seeking activities, even though strategic priorities can be directed to other aspects that are more economically profitable. In contrast, the idea development indicator is in quadrant 1 (concentrate here), which shows that the ability to elaborate and design innovative ideas is still low, and needs to be the focal point for human resource development. This dimension is crucial because it is a bridge to the implementation of more concrete ideas (De Jong and Den Hartog, 2010; Leong and Rasli, 2014; Pudjiarti and Mufti, 2019). The low ability of BUMDes management in the development of ideas will hinder the transformation of ideas into marketing advantages that are adaptive to local and regional markets.

Meanwhile, the indicator of championing ideas is included in quadrant 2 (keep up the good work), which shows that efforts to maintain and voice innovative ideas in the BUMDes environment have been going well and need to be maintained. This category shows the existence of internal motivation and collective courage in fighting for ideas, even if they have not been fully translated into concrete action. In contrast, the implementation of the idea is in quadrant 3 (low priority), reflecting that efforts to implement innovation are still considered non-urgent, which is allegedly due to skepticism about the effectiveness of the idea in the local market. Overall, innovative behavior in Gorontalo BUMDes shows an unbalanced structure between its dimensions. This inequality can affect the effectiveness of marketing strategies and the utilization of village economic potential (Chongvisal, 2020; Akram et al., 2016; Parveen and Reddy, 2024), so that a targeted resource redistribution and training strategy is needed.

Social capital variable

The results of IPA analysis from Social Capital in the Tomini Bay Area, Gorontalo Province can be presented in the following Figure 3:

Figure 3 shows that the variables of IPA analysis on the social capital dimension show that the social trust indicator is in quadrant 2 (keep up the good work), indicating that the public has high confidence in BUMDes, including in the accountability and transparency of their management. This trust supports product marketing because it increases loyalty and active participation of citizens (Putnam, 2014; Herianti et al., 2020; Kristiana and Arifin, 2022). The social norm indicator is in quadrant 4 (possible overkill), indicating that although village norms are maintained, efforts to preserve these norms over-absorb resources and are less relevant to improving marketing performance. Adjustment to more adaptive social changes is important so that they do not stagnate. Social norms need to be reformulated to support the flexibility of village businesses without abandoning local values that are essential to social harmony and collective ethics.

Furthermore, the indicators of social networks and local wisdom are both in quadrant 3 (low priority). The low use of social networks indicates a lack of connectivity between BUMDes and external partners, such as market players or other supporting institutions, even though this potential can expand market access and increase the scale of product distribution (Fukuyama, 2018; Mulyaningsih and Subekti, 2019; Zainal et al., 2021). Local wisdom has not been used strategically as a selling point that distinguishes BUMDes products from competitors. Local potentials such as traditional farming techniques, cultural narratives, and regional symbols should be packaged in the product branding strategy. Overall, the social capital of BUMDes in Tomini Bay is strong in terms of trust and norms, but managers need to review the focus of resources so that they can be used equally, especially to activate social networks and integrate local values into marketing.

The findings from the IPA analysis indicate that social capital plays an important role as a moderating variable, as the presence of trust, social norms, and social networks can enhance the effectiveness of innovative behavior. Without strong social support, innovation tends to be difficult to accept, adopt, and implement optimally in BUMDes in Gorontalo Province, particularly in improving the marketing performance of agricultural products.

Variables of marketing performance of agricultural products in BUMDes

The results of the science analysis of the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province can be presented in the following Figure 4:

Figure 4 regarding the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province, it was found that the sales volume indicator in this study is in quadrant 2 (keep up the good work), reflecting that BUMDes has managed to maintain stable sales performance and in accordance with the expectations of the local community. Likewise, customer growth indicators, which are in the same quadrant, show that marketing strategies are quite effective in attracting and retaining customers, while maintaining the loyalty of the local market. These findings confirm the importance of the sustainability of customer relations strategies and trust-based local distribution (Kristiana and Arifin, 2022; Nasehifar et al., 2025; Saputra and Purwaningsih, 2021). However, the profit ability indicator is actually in quadrant 1 (concentrate here), which indicates an imbalance between sales volume and profitability. This can be caused by high distribution costs, suboptimal pricing strategies, or low operational efficiency in the management of BUMDes.

The marketing area reach indicator occupies quadrant 3 (low priority), which shows that market expansion has not been the main concern of BUMDes in the Tomini Bay Area. The low performance of this indicator shows that marketing activities are still very local and have not been directed outside the wider region, even though the potential of agricultural products is very open to be developed regionally. Strategies to strengthen supply chains and collaborate with partners outside the village can be solutions to raise this indicator (Zulkarnain et al., 2020; Widodo and Murtini, 2019; Nasehifar et al., 2025). Overall, the marketing performance of BUMDes showed strength in terms of customer relations and sales volume, but faced serious challenges in terms of profit margins and market expansion. This requires a re-planning of cost efficiency and diversification of more competitive marketing channels.

The marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province shows complex dynamics in answering the challenges of efficiency, market affordability, and sustainability. Although BUMDes have managed to establish good relationships with consumers and maintain local market stability, the aspects of profitability and geographical expansion are still weak points that must be addressed strategically. Digital transformation is considered to be able to strengthen marketing performance by facilitating market analysis and increasing connectivity between producers and consumers in real-time (Pratama et al., 2023). Institutional collaboration and local economic development can strengthen the sustainability of rural businesses (Wazza and Bedeke, 2022). Global challenges in trade in agricultural products that are heavily influenced by international market regulations and mechanisms are also an important context to consider in efforts to expand marketing reach (Mareeh et al., 2021). Therefore, BUMDes must focus on various alternative innovations and rely on social capital partnerships to be able to increase the ability to generate profits for the sake of achieving sustainability in the economic aspects of BUMDes as well as the social aspects of the welfare of the community and farmers.

The success of marketing agricultural products through BUMDes is largely determined by the ability to adapt to digital trends and sustainable consumer behavior. Zia and Alzahrani (2022) emphasized that e-marketing can create consumer behavior that is more environmentally conscious and loyal to local products, if digital strategies are implemented effectively. In addition, the use of digital technology in the agri-food industry has been proven to drive supply chain efficiency and increase profitability, an aspect that is currently still a weakness of BUMDes in the Tomini Bay region (Kanellos et al., 2024). However, it needs to be recognized that limited resources, access to technology, and digital literacy at the level of farmers and BUMDes managers are major obstacles that need to be resolved. The marketing of agricultural products is constrained by infrastructure, market access, and logistical limitations (Jeyaramya, 2022). Therefore, improving the marketing performance of BUMDes requires a holistic approach based on technology, institutional collaboration, and policy support that empowers village communities in a sustainable manner. Hussain et al. (2013) said that considering the weak market conditions of agricultural products, it is recommended to develop appropriate marketing systems and structures for agricultural products by involving agricultural business actors and other local stakeholders, in order to provide benefits to the local community through increasing the supply of agricultural products in the local market.

Table 1: Outer model results.

No.	Variable	Outer loading value				AVE	CR	CA
No.	Variable	1	2	3	4	AVE	CR	CA
1	Innovative Behavior (X)	0.903	0.880	0.853	0.860	0.765	0.905	0.898
2	Social Capital (M)	0.849	0.811	0.900	0.868	0.735	0.892	0.880
3	Marketing performance of agricultural products in BUMDes (Y)	0.924	0.851	0.929	0.884	0.806	0.922	0.919

Source: Smart PLS analysis results version 4, 2024.

This result is in accordance with the opinion of Sunarjo and Nurhayati (2024) that the role of BUMDes as an instrument for strengthening the village economy and an instrument for community welfare to encourage the village government in developing its village potential in accordance with the capabilities and authority of the village. Furthermore, as an instrument of community welfare by involving the community in the management of BUMDes, it will boost the economy and reduce the unemployment rate in the village. Through the problems that are still experienced by local residents, it requires a complete and comprehensive strategy concept in order to be able to open effective and maximum marketing channels, through the right marketing strategy can create a fast product marketing channel to consumers

Partial least square analysis results

Prerequisites for partial least square analysis (outer model): The outer model consists of confirmatory factor analysis, discriminant validity, composite reliability and cronbach’s alpha. The results can be presented in Table 1:

The results of outer loadings found that all variable indicators had a loading factor value above 0.6. So that all of these indicators can be used to represent research variables. The results of the AVE value of the innovative behavior variable (X), social capital (M) and marketing performance of agricultural products in BUMDes (Y) in the fit category mean that the variable has good discriminant validity. The composite reliability value of each research variable > 0.6. Thus, these results can show that each variable has a high level of reliability. Then Cronbach’s Alpha value of all research variables > 0.6. These results show that each variable has high reliability.

Value of influence coefficient (inner model): The results of the analysis of the level of R Square for the entire equation are presented in Figure 5:

Figure 5 shows that the value of the innovative behavior path coefficient on the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province is 0.425 or 42.50%. Then the value of the social capital moderation coefficient on the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province is 0.473 or 47.30%. Then the interaction between social capital (moderation variable) and innovative behavior on the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province by 0.042 or by 4.20% or moderation of the social capital variable was able to increase the influence of innovative behavior on the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province by 4.20%.

Then the R Square value of 0.699 means that 69.90% of the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province can be explained (can be influenced) by innovative behavior, social capital and interaction between social capital and innovative behavior. The result of the determination coefficient of 69.90% shows that the relationship between these variables is in the substantial realm. The value of the determination coefficient, if it is associated with the test of the analysis prerequisites (inner model), then the equation meets the test of model goodness (goodness of fit). Then the remaining 30.10% can be explained by other variables such as the ability of BUMDes managers, BUMDes collaboration, government policies and village community support.

Hypothesis testing results

Based on the data processing that has been carried out, the results can be used to answer the hypothesis in this study. The hypothesis test in this study was carried out by looking at the tcal value and the P-value. For more detailed results, see Figure 6 and Table 2:

Based on Figure 6 and Table 2, the results of hypothesis testing can be interpreted by classifying the influence of the variable:

Table 2: Hypothesis testing results.

Kind influence	Influence	t Statistic	P-value
Immediately	X->Y	6,424	0,000
Immediately	M->Y	7,118	0,000
Indirect (Moderation)	X*M->Y	2,140	0,032

Source: Smart PLS analysis results version 4, 2024.

The influence of innovative behavior on the marketing performance of agricultural products in BUMDes

The value of calculating the influence of innovative behavior on the marketing performance of agricultural products in BUMDes was obtained with a result of 6.424 with a probability value (P-value) of 0.000. The tcal value of 6.424 is greater than the ttable value of 1.96 (6.424 > 1.96). The P-value is smaller than the probability value of 0.05 (0.000<0.05), then Ha1 is accepted which means that the higher the intensity of innovative behaviors carried out by the management and business actors of BUMDes, the better the effectiveness of marketing performance achieved. Innovative behavior includes exploring new ideas, developing creativity-based strategies, fighting for change, and implementing new solutions into a marketing process that is more responsive to market dynamics which of course has an impact on business performance (Muhamad et al., 2023; Rahmayanti and Johan, 2024). Jankelová et al. (2021); Ashraf et al. (2022); Nicolescu and Rîpa (2024); Malibari et al. (2025) show that innovative work behaviors improve usha performance in agriculture through strengthening teamwork and marketing differentiation. Firdaus and Sakinah (2023); Ketut et al. (2025); Diansyah et al. (2025) confirm that innovative behavior contributes to the creation of competitive advantages that ultimately drive marketing achievement. Martos-Pedrero et al. (2025) also emphasized that innovation, especially in the rural agricultural cooperative sector, is strongly correlated with financial resilience and market performance.

The influence of social capital on the marketing performance of agricultural products in BUMDes

The value of calculating the influence of Social Capital on the marketing performance of agricultural products in BUMDes was obtained a result of 7.118 with a probability value (P-value) of 0.000. The tcal value of 7.118 is greater than the t table value of 1.96 (7.118 > 1.96). The P-value is smaller than the probability value of 0.05 (0.000<0.05), then Ha2 is accepted which means that Social Capital has a positive and significant effect on the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province. Positive and significant results show that the stronger the social capital owned by BUMDes managers, the more optimal the strategy and marketing results that can be achieved, which is the foundation for creating close collaboration between BUMDes managers, the community, and other stakeholders. Baumüller et al. (2023); González-Quiñones (2025); Zhang et al. (2025) emphasized that the use of social networks in marketing plays a disruptive role as a disruptive tool capable of creating customer loyalty. Mukul et al. (2022) stated that social capital provides direct benefits to marketing effectiveness, especially in creating credibility and reputation for new businesses. Meanwhile, Baluku et al. (2025) prove that the existence of social capital strengthens entrepreneurial outcomes through positive perception and a sense of belonging to the local community. By making optimal use of social capital, BUMDes managers can increase their competitive advantage, expand market access, build consumer trust, and encourage sustainable long-term marketing success. Therefore, social capital is not only a social foundation, but also a strategic asset in strengthening marketing capabilities in the village agricultural sector.

The effect of innovative behavior interaction with social capital on the marketing performance of agricultural products in BUMDes

The value of calculating the effect of social capital interaction with innovative behavior was 2.140 with a probability value (P-value) of 0.000. The tcal value of 2.140 is greater than the ttable value of 1.96 (2.140 < 1.96). The P-value is smaller than the probability value of 0.05 (0.032 < 0.05), so Ha3 is accepted which means that the interaction of social capital with innovative behavior has a positive and significant effect on the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province. This shows that Social Capital is a good moderation variable, which is able to increase the influence of innovative behavior on the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province (Social Capital can be a good moderation variable), this is because social capital creates a collaborative process of various parties to be more innovative in improving marketing with good performance.

Social capital acts as a moderation variable that reinforces the effects of innovative behaviors in encouraging adaptive and competitive marketing. Social capital, which includes beliefs, social norms, networks, and local wisdom, forms a collaborative climate between BUMDes managers and the community, which encourages the exchange of ideas and the courage to experiment with new marketing strategies (Van Tran et al., 2024; Prabandari et al., 2023; Lyu and Ji, 2020). A study by Zaini et al. (2023) confirms that social capital strengthens competitive advantage which leads to improved marketing performance. Frederiksen and Wulff (2020) say that local social networks improve the ability of village companies to adopt new ideas in a shorter time, especially in the distribution and branding of agricultural products. Awan et al. (2022) similarly affirm that trust-based collaboration in the agricultural community accelerates the dissemination of market-oriented innovation.

The existence of high social trust strengthens public acceptability to changes and innovations carried out by BUMDes, making consumers more loyal and responsive to local value-based marketing strategies. Social network support also facilitates BUMDes’ access to new markets, external resources, and the transfer of marketing knowledge and technology (Nooteboom, 2018; Crespell and Hansen, 2016). In this case, social capital not only functions as a social lubricant, but also a catalyst for innovation that supports the realization of sustainable marketing performance. As affirmed by Morales et al. (2019), a cohesive social environment contributes greatly to the dynamics of innovation on a micro scale and strengthens the position of local products in competitive markets. Pratama et al. (2023) also noted that the use of AI-based technology is more effective in communities that have strong social capital, as it supports the adoption of technology collectively. Therefore, the synergy between innovative behavior and social capital encourages BUMDes to respond to the market adaptively, maintain sustainability, and increase competitiveness in the era of an economy based on digital and collaborative innovation.

This result is in accordance with the opinion of Awang and Situmorang (2023) that BUMDes are present with the intention of improving the economy of village communities and managing village assets efficiently, with a focus on the welfare of village communities, improving public services, and equitable distribution of the village economy (Sulaksana and Nuryanti, 2019). Therefore, BUMDes have the drive to manage their business well and achieve profitability. As with any other company, the success of BUMDes depends heavily on the level of sales of products and services offered. Therefore, strategies that can increase or maintain sales stability are very important for BUMDes.

Conclusions and Recommendations

Innovative behavior is in a fairly effective aspect because the focus needs to be given to the development of ideas because it is important but the performance is low, namely the lack of new ideas applied by BUMDes, especially in terms of innovation of processed products. Exploration of ideas is considered excessive, while fighting for ideas must be maintained. The implementation of the current idea is not considered important, but it still requires attention for future improvement. Social Capital is also quite effective, namely social trust must be maintained, while social norms are considered excessive. Social networks and local wisdom have a low priority but need to be gradually improved to strengthen BUMDes marketing in the future. As well as the marketing performance of agricultural products in BUMDes is always quite effective, namely sales volume and customer growth must be maintained. Improving the ability to generate profits is a top priority because the profits obtained so far are not in accordance with the set targets, while the reach of the current marketing area has a low priority but still needs to be monitored.

Innovative behavior has a positive and significant effect on the marketing performance of agricultural products in BUMDes. Social Capital has a positive and significant effect on the marketing performance of agricultural products in BUMDes. As well as the interaction of social capital with innovative behaviors has a positive and significant effect on the marketing performance of agricultural products in BUMDes in the Tomini Bay Area, Gorontalo Province. The determinant of innovative behavior factors and social capital of 69.90% on the marketing performance of agricultural products in BUMDes in the Teluk Tomini Area, Gorontalo Province shows that if BUMDes want to maximize their role in village development and the welfare of farming communities, they must be more optimal in prioritizing innovation in products and services and continue to establish cross-sector partnerships with multi-stakeholders. Then the influence of another variable of 30.10% on the marketing performance of BUMDes is suspected to be the factor of the ability of BUMDes managers, BUMDes collaboration, government policies and village community support.

Based on these findings, the Gorontalo Provincial Government and the Regency/City Governments within Gorontalo Province need to allocate more targeted funding to support innovation development in BUMDes, such as providing village innovation research grants and agricultural-based business incubation programs. They can also organize needs-based training to enhance social capacity, strengthen social trust, and expand BUMDes’ social networks. Village Professional Assistants from the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration of the Republic of Indonesia must take a more proactive role by offering thematic technical guidance, providing intensive assistance during the early implementation stages of business ideas, and supporting the formulation of marketing strategies based on local potential. BUMDes managers throughout Gorontalo Province must intensify their efforts in creating and developing innovative ideas that meet market demands. They should also leverage the existing high level of social trust to strengthen branding and deepen relationships with the community. Expanding social networks is also essential by establishing partnerships with modern retailers such as Alfamart and Indomaret, and collaborating with farmers, local MSMEs, and larger agribusiness actors. Village farmers and breeders should strengthen collaboration with BUMDes through sustainable partnership models, share local knowledge, and align their production with market needs to build a more efficient value chain. Additionally, academics and higher education institutions can play a vital role in conducting follow-up research, supporting village-based innovations through scientific guidance, and serving as knowledge partners in strengthening the managerial and marketing capacities of BUMDes.

Acknowledgments

This research was supported by the Ministry of Education, Culture, Research, and Technology of Indonesia through the Fundamental-Regular Research (PRF) 2024 as outlined in the Decree of the Rector of Universitas Negeri Gorontalo No: 063/E5/PG.02.00.PL/2024, under Contract No: 944/UN47. D1.1/PT.01.03/2024.

Novelty Statement

The novelty in this research is to specifically examine the marketing performance of agricultural products in BUMDes with an innovative behavioral approach and social capital, which is still rarely discussed in an integrated manner in village organizations or institutions. Novelty in terms of methodology, the use of the Mix Method approach with a sequential explanatory design and the combination of Importance Performance Analysis (IPA) and SEM-PLS Moderated Regression Analysis (MRA) analysis provides a strong and comprehensive depth of analysis in strategic decision-making of related parties. The novelty of the research results is to prove that innovative behavior and social capital, as well as the interaction between the two, significantly affect marketing performance, as well as identify specific aspects such as the development of ideas, social networks, and local wisdom as well as the ability to generate profits as a priority for improvement in order to maximize the marketing performance of BUMDes, especially BUMDes which make businesses in the agricultural sector the main business in village development and welfare of the village community. The novelty of the research findings is also evident in the role of social capital as an effective moderating variable, due to the strong kinship ties, collective spirit, and emotional bonds among village residents, which facilitate the spread of ideas and acceptance of innovation in BUMDes business activities.

Author’s Contribution

Umin Kango: Conceptualized the study, designed the methodology, resources research management, supervised the research process, writing original draft preparation, and writing review and editing

Idris Yanto Niode: Conceptualization, methodology, formal analysis, writing original draft preparation, writing review and editing

Hapsawati Taan: Conceptualization, methodology, formal analysis, writing original draft preparation, writing review and editing

Elnino M. Husein Mohi: Responsible for manuscript writing, editing, and final proofreading.

Mohammad Zubair Hippy: Conducted data collection, statistical analysis, and interpretation of results.

Siti Rahmatia Machieu: Conducted data collection, software and project administration.

Dian Rahayu Maku: Data investigation, writing original draft preparation, and data validation.

All authors reviewed and approved the final version of the manuscript. All authors contributed significantly to this research.

Generative AI and AI-assisted technology statement

The authors declare that no Generative AI was used in the creation of this manuscript.

Conflicts of interest

The authors have declared no conflict of interest.

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