Effect of entrepreneur personality and social network sites on innovation performance: evidence from Indonesia

Keywords: entrepreneur personality, dynamic capability, entrepreneur demographics, innovation performance, millennial farmer.


Purpose. This study aims to determine whether entrepreneurial characteristics and social network sites affect innovation performance of millennial farmers in Central Java, with dynamic capability as a mediation variable.

Methodology / approach. A case study of millennial farmers in Central Java was conducted with a sample of 135 respondents. The samples were selected using a purposive sampling technique, they have been in agricultural businesses for at least two years, and registered as millennial farmers ambassadors. The method of data analysis was Structural Equation Modeling, with Partial Least Squares serving as the analytical tool.

Results. The results showed that demographics and social network sites of entrepreneur had no direct effect on innovation performance, while personality showed a significant effect. Dynamic capability variable moderately mediated between personality and innovation performance indirectly. A successful millennial farmer on innovation must have a strong entrepreneurial character. A strong entrepreneurial mindset is necessary for effective business management. Self-confidence, willingness to take risks, a grand vision, and superior creativity are required to achieve dynamic capability in driving change and innovation within the business. Millennial farmers must also think and act dynamically following technological developments and changing business environments.

Originality / scientific novelty. The novelty lies in the exploration of innovation performance of millennial farmers, which has not been extensively examined. Although several studies have been conducted previously, the investigation into millennial farmers in Indonesia imparts a distinctive characteristic. Millennial farmers represent the future generation in the agricultural sector, but their contribution to the economy is decreasing. Previous studies tested social network sites and entrepreneurial personality in separate studies. However, this study examines social network sites as external factors and entrepreneur personality and demographics as internal factors that influencing innovation performance. This is done to provide a more comprehensive picture of the factors that drive innovation performance. Therefore, examining their innovation performance comprehensively aims to understand the affecting factors and take action for improvements.  Testing and categorising the effect of dynamic capability as a mediating variable also enriched early studies.

Practical value / implications. The results provided a scholarly contribution by enriching the discourse on entrepreneurship and its effect on business performance. This research is useful for millennial farmers to win the competition and strengthen their competitive advantage.


Porfírio, J. A., Carrilho, T., Jardim, J., & Wittberg, V. (2022). Fostering entrepreneurship intentions: the role of entrepreneurship education. Journal of Small Business Strategy, 32(1), 1–10. https://doi.org/10.53703/001c.32489.

López-Núñez, M. I., Rubio-Valdehita, S., Aparicio-García, M. E., & Díaz-Ramiro, E. M. (2020). Are entrepreneurs born or made? The influence of personality. Personality and Individual Differences, 154, 109699. https://doi.org/10.1016/j.paid.2019.109699.

Stoica, O., Roman, A., & Rusu, V. D. (2020). The nexus between entrepreneurship and economic growth: a comparative analysis on groups of countries. Sustainability, 12(3), 1186. https://doi.org/10.3390/su12031186.

Galindo-Martín, M. A., Castaño-Martínez, M. S., & Méndez-Picazo, M. T. (2021). The role of entrepreneurship in different economic phases. Journal of Business Research, 122, 171–179. https://doi.org/10.1016/j.jbusres.2020.08.050.

Acs, Z. J., & Szerb, L. (2007). Entrepreneurship, economic growth and public policy. Small Business Economics, 28(2/3), 109–122. https://doi.org/10.1007/s11187-006-9012-3.

Sohn, K. (2017). The risk preferences of entrepreneurs in Indonesia. Bulletin of Economic Research, 69(3), 271–287. https://doi.org/10.1111/boer.12088.

Wali, M. (2019). Technopreneurship millennial. Solo, KITA Publisher.

Hermanto, B., & Suryanto (2017). Entrepreneurship ecosystem policy in Indonesia. Mediterranean Journal of Social Sciences, 8(1), 110–115. https://doi.org/10.5901/mjss.2017.v8n1p110.

Riptanti, E. W., Harisudin, M., Kusnandar, Khomah, I., Setyowati, N., & Qonita, R. A. (2022). Networking capabilities of millennial farmers in Central Java. IOP Conference. Series: Earth and Environmental Science, 1114, 012103. https://doi.org/10.1088/1755-1315/1114/1/012103.

Kusnandar, Harisudin, M., Riptanti, E. W., Khomah, I., Setyowati, N., & Qonita, R. A. (2023). Prioritizing IoT adoption strategies in millennial farming: an analytical network process approach. Open Agriculture, 8(1), 20220179. https://doi.org/10.1515/opag-2022-0179.

Harisudin, M., Kusnandar, Riptanti, E. W., Setyowati, N., & Khomah, I. (2023). Determinants of the internet of things adoption by millennial farmers. AIMS Agriculture and Food, 8(2), 329–342. https://doi.org/10.3934/agrfood.2023018.

Effendy, L., Widyaastuti, N., & Lastri, H. (2022). The millennial farmers’ interest in succeeding the family agriculture for hydroponic application in Garut District, West Java Indonesia. Universal Journal of Agricultural Research, 10(3), 266–274. https://doi.org/10.13189/ujar.2022.100308.

Valerio, E., Hilmiati, N., Prior, J., & Dahlanuddin, D. (2022). Analysis of the agricultural innovation system in Indonesia: a case study of the beef sector in Nusa Tenggara Barat. Agricultural Systems, 203, 103529. https://doi.org/10.1016/j.agsy.2022.103529.

Läpple, D., Renwick, A., & Thorne, F. (2015). Measuring and understanding the drivers of agricultural innovation: evidence from Ireland. Food Policy, 51, 1–8. https://doi.org/10.1016/j.foodpol.2014.11.003.

Blakeney, M. (2022). Agricultural innovation and sustainable development. Sustainability, 14(5), 2698. https://doi.org/10.3390/su14052698.

Zhang, F., Wang, F., Hao, R., & Wu, L. (2022). Agricultural science and technology innovation, spatial spillover and agricultural green development – taking 30 provinces in China as the research object. Applied Sciences, 12(2), 845. https://doi.org/10.3390/app12020845.

Wang, F., Wu, L., & Zhang, F. (2020). Network structure and influencing factors of agricultural science and technology innovation spatial correlation network – a study based on data from 30 provinces in China. Symmetry, 12(11), 1773. https://doi.org/10.3390/sym12111773.

Newman, A., Tse, H. H. M., Schwarz, G., & Nielsen, I. (2018). The effects of employees’ creative self-efficacy on innovative behavior: the role of entrepreneurial leadership. Journal of Business Research, 89, 1–9. https://doi.org/10.1016/j.jbusres.2018.04.001.

Montañés-Del-Río, M. A., & Medina-Garrido, J. A. (2020). Determinants of the propensity for innovation among entrepreneurs in the tourism industry. Sustainability, 12(12), 5003. https://doi.org/10.3390/su12125003.

Lurtz, K., & Kreutzer, K. (2017). Entrepreneurial orientation and social venture creation in nonprofit organizations: the pivotal role of social risk taking and collaboration. Nonprofit and Voluntary Sector Quarterly, 46(1), 92–115. https://doi.org/10.1177/0899764016654221.

Patricio, R., Moreira, A., Zurlo, F., & Melazzini, M. (2020). Co-creation of new solutions through gamification: a collaborative innovation practice. Creativity and Innovation Management, 29(1), 146–160. https://doi.org/10.1111/caim.12356.

Obschonka, M., & Stuetzer, M. (2017). Integrating psychological approaches to entrepreneurship: the Entrepreneurial Personality System (EPS). Small Business Economics, 49, 203–231. https://doi.org/10.1007/s11187-016-9821-y.

Brown, D., Foroudi, P., & Hafeez, K. (2019). Marketing management capability: the construct and its dimensions. An examination of managers’ and entrepreneurs’ perceptions in a retail setting. Qualitative Market Research, 22(5), 609–637. https://doi.org/10.1108/QMR-10-2017-0131.

Ferreira, J., Cardim, S., & Coelho, A. (2020). Dynamic capabilities and mediating effects of innovation on the competitive advantage and firm’s performance: the moderating role of organizational learning capability. Journal of the Knowledge Economy, 12, 620–644. https://doi.org/10.1007/s13132-020-00655-z.

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10–11), 1105–1121. Available at: http://www.jstor.org/stable/3094429.

de Aro, E. R., & Perez, G. (2021). Identification of dynamic capabilities in open innovation. Innovation and Management Review, 18(2), 118–128. https://doi.org/10.1108/INMR-10-2019-0120.

Cui, F., & Song, J. H. (2022). Impact of entrepreneurship on innovation performance of Chinese SMEs: focusing on the mediating effect of enterprise dynamic capability and organizational innovation environment. Sustainability, 14(19), 12063. https://doi.org/10.3390/su141912063.

Serfling, M. A. (2014). CEO age and the riskiness of corporate policies. Journal of Corporate Finance, 25, 251–273. https://doi.org/10.1016/j.jcorpfin.2013.12.013.

Chaniago, H. (2021). Demographic characteristics and small business success: evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(12), 399–409. https://doi.org/10.13106/jafeb.2021.vol8.no12.0399.

Kevill, A., Trehan, K., & Easterby-Smith, M. (2017). Perceiving ‘capability’ within dynamic capabilities: the role of owner-manager self-efficacy. International Small Business Journal, 35(8), 883–902. https://doi.org/10.1177/0266242616688523.

Yukongdi, V., & Lopa, N. Z. (2017). Entrepreneurial intention: a study of individual, situational and gender differences. Journal of Small Business and Enterprise Development, 24(2), 333–352. https://doi.org/10.1108/JSBED-10-2016-0168.

Patanakul, P., & Pinto, J. K. (2017). Program management. In S. Sankaran, R. Müller, N. Drouin (Eds). Cambridge Handbook of Organizational Project Management, (pp. 106–118). Cambridge University Press. https://doi.org/10.1017/9781316662243.012.

Stieglitza, S., Mirbabaiea, M., Rossa, B., & Neuberger, C. (2018). Social media analytics – Challenges in topic discovery, data collection, and data preparation. International Journal of Information Management, 39, 156–168. https://doi.org/10.1016/j.ijinfomgt.2017.12.002.

Sánchez-Teba, E. M., Rodríguez-Fernández, M., & Gaspar-González, A. I. (2021). Social networks and open innovation: business academic productivity. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 158. https://doi.org/10.3390/joitmc7020158.

Palacios-Marqués, D., Merigó, J. M., & Soto-Acosta, P. (2015). Online social networks as an enabler of innovation in organizations. Management Decision, 53(9), 1906–1920. https://doi.org/10.1108/MD-06-2014-0406.

Dwivedi, Y. K., Ismagilova, E., Rana, N. P., & Raman, R. (2023). Social media adoption, usage and impact in business-to-business (B2B) context: a state-of-the-art literature review. Information Systems Frontiers, 25, 971–993. https://doi.org/10.1007/s10796-021-10106-y.

Scuotto, V., Del Giudice, M., & Carayannis, E. G. (2017). The effect of social networking sites and absorptive capacity on SMES’ innovation performance. Journal of Technology Transfer, 42(2), 409–424. https://doi.org/10.1007/s10961-016-9517-0.

BPS (2021). Keadaan Angkatan Kerja Provinsi Jawa Tengah Agustus 2021. Available at: https://jateng.bps.go.id/publication/2022/05/18/4e782ba6d798164717350798/keadaan-angkatan-kerja-provinsi-jawa-tengah-agustus-2021.html.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., Black, W. C., & Anderson, R. E. (2018). Nonparametric Finance, 5st ed. New Jersey, John Wiley & Sons, Inc.

Herlinawati, E., Suryana, Ahman, E., & Machmud, A. (2019). The effect of entrepreneurial orientation on SMEs business performance in Indonesia. Journal of Entrepreneurship Education, 22(5), 1–15. Available at: https://www.abacademies.org/articles/The-effect-of-entrepreneurial-orientation-on-1528-2651-22-5-461.pdf.

Ahn, S., Kim, K. S., & Lee, K. H. (2022). Technological capabilities, entrepreneurship and innovation of technology-based start-ups: the resource-based view. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 156. https://doi.org/10.3390/joitmc8030156.

Dorcas, K. D., Celestin, B. N., & Yunfei, S. (2021). Entrepreneurs traits/characteristics and innovation performance of waste recycling start‐ups in Ghana: an application of the upper echelons theory among seed award winners. Sustainability, 13(11), 5794. https://doi.org/10.3390/su13115794.

Utomo, M. N., Cahyaningrum, W., & Kaujan, K. (2020). The role of entrepreneur characteristic and financial literacy in developing business success. Jurnal Manajemen Bisnis, 11(1), 26–42. https://doi.org/10.18196/mb.11185.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis, 7th ed. New Jersey, Prentice Hall.

Vecchio, R. P. (2003). Entrepreneurship and leadership: common trends and common threads. Human Resource Management Review, 13(2), 303–327. https://doi.org/10.1016/S1053-4822(03)00019-6.

Sánchez, J. C., Carballo, T., & Gutiérrez, A. (2011). The entrepreneur from a cognitive approach. Psicothema, 23(3), 433–438. http://www.ncbi.nlm.nih.gov/pubmed/21774897.

Lang, L. D., Tiwari, A. K., Hieu, H. N., Ha, N. M., & Gaur, J. (2023). The role of structural social capital in driving social-oriented sustainable agricultural entrepreneurship. Energy Economics, 124, 106855. https://doi.org/10.1016/j.eneco.2023.106855.

Yamaguchi, C. K., Stefenon, S. F., Ramos, N. K., dos Santos, V. S., Forbici, F., Klaar, A. C. R., Ferreira, F. C. S., … & de Borba, M. L. (2020). Young people’s perceptions about the difficulties of entrepreneurship and developing rural properties in family agriculture. Sustainability, 12(21), 8783. https://doi.org/10.3390/su12218783.

Kusnandar, Setyowati, N., & Riptanti, E. W. (2023). Creating an innovative culture in agribusiness of micro, small and medium-sized enterprises. Agricultural and Resource Economics, 9(2), 205–222. https://doi.org/10.51599/are.2023.09.02.09.

Cepeda, G., & Vera, D. (2007). Dynamic capabilities and operational capabilities: a knowledge management perspective. Journal of Business Research, 60(5), 426–437. https://doi.org/10.1016/j.jbusres.2007.01.013.

Riptanti, E. W., Masyhuri, Irham, & Suryantini, A. (2022). The sustainability model of dryland farming in food-insecure regions: structural equation modeling (SEM) approach. International Journal of Sustainable Development and Planning, 17(7), 2033–2043. https://doi.org/10.18280/ijsdp.170704.

Tsai, P. C. F., & Shih, C. T. (2013). Responsible downsizing strategy as a panacea to firm performance: the role of dynamic capabilities. International Journal of Manpower, 34(8), 1015–1028. https://doi.org/10.1108/IJM-07-2013-0170.

Block, J. H., Fisch, C. O., & van Praag, M. (2017). The Schumpeterian entrepreneur: a review of the empirical evidence on the antecedents, behavior, and consequences of innovative entrepreneurship. Industry and Innovation, 24(1), 61–95. https://doi.org/10.1080/13662716.2016.1216397.

Yaakub, N. A., Nor, K. M., & Jamal, N. M. (2020). Online versus offline entrepreneur personalities: a review on entrepreneur performance. Journal of Critical Reviews, 7(16), 450–462. https://doi.org/10.31838/jcr.07.16.54.

Freixanet, J., Braojos, J., Rialp-Criado, A., & Rialp-Criado, J. (2021). Does international entrepreneurial orientation foster innovation performance? The mediating role of social media and open innovation. The International Journal of Entrepreneurship and Innovation, 22(1), 33–44. https://doi.org/10.1177/1465750320922320.

Lachowicz, M. J., Preacher, K. J., & Kelley, K. (2018). A novel measure of effect size for mediation analysis. Psychological Methods, 23(2), 244–261. https://doi.org/10.1037/met0000165.

How to Cite
Riptanti, E. W., Harisudin, M., Kusnandar, Khomah, I., & Setyowati, N. (2024). Effect of entrepreneur personality and social network sites on innovation performance: evidence from Indonesia. Agricultural and Resource Economics: International Scientific E-Journal, 10(1), 165–183. https://doi.org/10.51599/are.2024.10.01.07