Livelihood Assets and Creative Thinking for Improving the Welfare of Farm Households

Agung Enggal Nugroho, Nuhfil Hanani, Syafrial, Rosihan Asmara, Sujarwo

Abstract

This study examines the role of livelihood assets, including human capital (HC), information capital (IC), and social capital (SC), in farm household welfare (HW). Additionally, this research explores the mediating role of creative thinking (CT) in the relationship between livelihood assets and HW. A quantitative method was employed with data analysis conducted using the SmartPLS application. The findings indicate that HC has a significant and positive effect on HW, both directly (p-value = 0.0005) and through CT as a mediating variable (p-value = 0.0157). Although the direct role of IC on HW is not significant (p-value = 0.3359), its significance is evident in its impact on CT (p-value = 0.0000). Conversely, SC does not show significant effects on HW or CT (p-values = 0.4469 and 0.8274). Furthermore, the study confirms that CT plays a significant and positive role in enhancing HW (p-value = 0.0000), with the measurement combining general CT abilities and those specifically relevant to agriculture. These findings underscore the importance of CT in improving HW. The study also highlights the significance of investing in HC, such as education and health, along with open access to information to support HW. On the other hand, the insignificant role of SC suggests that it may not be a primary determinant of HW, given its complexity within communities. This research provides important insights for policymakers in developing effective strategies to improve farm HW, focusing on strengthening HC and information access.

 

Keywords: livelihood assets; human capital; creative thinking; household welfare

 

DOI:10.62321/issn.1000-1298.2024.08.06



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