IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i24p16970-d1007092.html
   My bibliography  Save this article

Social Capital and Household Economic Welfare: Do Entrepreneurship, Financial and Digital Literacy Matter?

Author

Listed:
  • Putra Hilmi Prayitno

    (Faculty of Education, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia)

  • Sheerad Sahid

    (Faculty of Education, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia)

  • Muhammad Hussin

    (Faculty of Education, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia)

Abstract

Alleviating household economic fragility and poverty is a global challenge in achieving a nation’s well-being. This study aims to examine the impact of social capital and Indonesian household economic welfare, as well as understand the mediating role of entrepreneurial, digital, and financial literacy. To address this objective, a structural equation modeling partial least square was adopted to acquire comprehend findings. The survey data were gathered from households in East Java of Indonesia using a simple random sampling approach. The findings from this study highlight that social capital significantly influences several literacies of households in Indonesia, including digital literacy, financial literacy, and entrepreneurial literacy. However, this study failed to confirm the nexus between social capital and household economic welfare. In addition, financial literacy, digital literacy, and entrepreneurial literacy all play an important role in mediating the connection between social capital and the economic welfare of households.

Suggested Citation

  • Putra Hilmi Prayitno & Sheerad Sahid & Muhammad Hussin, 2022. "Social Capital and Household Economic Welfare: Do Entrepreneurship, Financial and Digital Literacy Matter?," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16970-:d:1007092
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/24/16970/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/24/16970/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sergio Garbarino & Paola Lanteri & Paolo Durando & Nicola Magnavita & Walter G. Sannita, 2016. "Co-Morbidity, Mortality, Quality of Life and the Healthcare/Welfare/Social Costs of Disordered Sleep: A Rapid Review," IJERPH, MDPI, vol. 13(8), pages 1-15, August.
    2. Yuriy Bilan & Halyna Mishchuk & Natalia Samoliuk & Halyna Yurchyk, 2020. "Impact of Income Distribution on Social and Economic Well-Being of the State," Sustainability, MDPI, vol. 12(1), pages 1-15, January.
    3. Hung Manh Nguyen & Tuan Anh Nguyen, 2019. "Investigating the determinants of household welfare in the Central Highland, Vietnam," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1684179-168, January.
    4. Zhang, Yixing & Jia, Qinmin & Chen, Chen, 2021. "Risk attitude, financial literacy and household consumption: Evidence from stock market crash in China," Economic Modelling, Elsevier, vol. 94(C), pages 995-1006.
    5. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    6. Feng-Wen Chen & Long-Wang Fu & Kai Wang & Sang-Bing Tsai & Ching-Hsia Su, 2018. "The Influence of Entrepreneurship and Social Networks on Economic Growth—From a Sustainable Innovation Perspective," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    7. Girum Abebe & Biruk Tekle & Yukichi Mano, 2018. "Changing Saving and Investment Behaviour: The Impact of Financial Literacy Training and Reminders on Micro-businesses," Journal of African Economies, Centre for the Study of African Economies, vol. 27(5), pages 587-611.
    8. Neha Garg & Shveta Singh, 2018. "Financial literacy among youth," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(1), pages 173-186, January.
    9. Subramony, Mahesh & Segers, Jesse & Chadwick, Clint & Shyamsunder, Aarti, 2018. "Leadership development practice bundles and organizational performance: The mediating role of human capital and social capital," Journal of Business Research, Elsevier, vol. 83(C), pages 120-129.
    10. Rui Xue & Adrian Gepp & Terry J. O'Neill & Steven Stern & Bruce J. Vanstone, 2020. "Financial well‐being amongst elderly Australians: the role of consumption patterns and financial literacy," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 4361-4386, December.
    11. Roland W. Scholz & Eric J. Bartelsman & Sarah Diefenbach & Lude Franke & Arnim Grunwald & Dirk Helbing & Richard Hill & Lorenz Hilty & Mattias Höjer & Stefan Klauser & Christian Montag & Peter Parycek, 2018. "Unintended Side Effects of the Digital Transition: European Scientists’ Messages from a Proposition-Based Expert Round Table," Sustainability, MDPI, vol. 10(6), pages 1-48, June.
    12. Thanh, Pham Tien & Saito, Katsuhiro & Duong, Pham Bao, 2019. "Impact of microcredit on rural household welfare and economic growth in Vietnam," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 120-139.
    13. Hussien Mohamad Alakrash & Norizan Abdul Razak, 2021. "Technology-Based Language Learning: Investigation of Digital Technology and Digital Literacy," Sustainability, MDPI, vol. 13(21), pages 1-17, November.
    14. Sutter, Christopher & Bruton, Garry D. & Chen, Juanyi, 2019. "Entrepreneurship as a solution to extreme poverty: A review and future research directions," Journal of Business Venturing, Elsevier, vol. 34(1), pages 197-214.
    15. Hernan 'Banjo' Roxas & Fara Azmat, 2014. "Community social capital and entrepreneurship: analyzing the links," Community Development, Taylor & Francis Journals, vol. 45(2), pages 134-149, May.
    16. Marta Lindvert & Pankaj C. Patel & Joakim Wincent, 2017. "Struggling with social capital: Pakistani women micro entrepreneurs’ challenges in acquiring resources," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(7-8), pages 759-790, August.
    17. Melissa J. Wilmarth, 2021. "Financial and Economic Well-Being: A Decade Review from Journal of Family and Economic Issues," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 124-130, July.
    18. Dwi Suhartanto & Gundur Leo, 2018. "Small business entrepreneur resistance of ICT adoption: a lesson from Indonesia," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 21(1), pages 5-18.
    19. Lena Lee & Poh-Kam Wong, 2003. "Attitude Towards Entrepreneurship Education And New Venture Creation," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 11(04), pages 339-357.
    20. Christiaan Grootaert & Gi-Taik Oh & Anand Swamy, 2002. "Social Capital, Household Welfare and Poverty in Burkina Faso," Journal of African Economies, Centre for the Study of African Economies, vol. 11(1), pages 4-38, March.
    21. Santiago Carbó‐Valverde & Francisco Rodríguez‐Fernández & Gregory F. Udell, 2016. "Trade Credit, the Financial Crisis, and SME Access to Finance," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(1), pages 113-143, February.
    22. Falak Khan & Muhammad Ayub Siddiqui & Salma Imtiaz, 2022. "Role of financial literacy in achieving financial inclusion: A review, synthesis and research agenda," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2034236-203, December.
    23. Muhammad Khalid Anser & Zahid Yousaf & Muhammad Usman & Seemab Yousaf, 2020. "Towards Strategic Business Performance of the Hospitality Sector: Nexus of ICT, E-Marketing and Organizational Readiness," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    24. Degli Antoni, Giacomo, 2009. "Does satisfaction matter? A microeconomic empirical analysis of the effect of social relations on economic welfare," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 301-309, March.
    25. Lingjuan Cheng & Wei Zou & Kaifeng Duan, 2021. "The Influence of New Agricultural Business Entities on the Economic Welfare of Farmer’s Families," Agriculture, MDPI, vol. 11(9), pages 1-15, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Garima & Atul Dhingra & Piera Centobelli & Roberto Cerchione, 2023. "Factors and Activities Considered by First Generation Agripreneurs for Agri-Business Sustainable Development: A Study of Haryana, India," Sustainability, MDPI, vol. 15(9), pages 1-18, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. TAVARES Fernando Oliveira & ALMEIDA Luís Gomes & SOARES Vasco Jorge & TAVARES Vasco Capela, 2022. "Financial literacy: an exploratory analysis in Portugal," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(2), pages 252-269, August.
    2. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    3. Naseem Al Rahahleh, 2023. "Determinants of the Financial Capability: The Mediating role of Financial Self-efficacy and Financial Inclusion," International Journal of Economics and Financial Issues, Econjournals, vol. 13(6), pages 15-29, November.
    4. Nur Alya Afiqah Binti Mahat & Wei-Theng Lau, 2023. "Financial Literacy, Experience, Risk Tolerance and Investment Behavior: Observations during Pandemic," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 558-573, October.
    5. Jasmina Okicic & Meldina Kokorovic Jukan & Mensur Heric, 2021. "Some Insights Into Financial Literacy Among Undergraduate Students: A Case of Bosnia and Herzegovina," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 103-115, May.
    6. Luke Oyesola Olarinde & Adebayo Busura Abass & Tahirou Abdoulaye & Adebusola Adenike Adepoju & Matthew Olufemi Adio & Emmanuel Gbenga Fanifosi & Awoyale Wasiu, 2020. "The Influence of Social Networking on Food Security Status of Cassava Farming Households in Nigeria," Sustainability, MDPI, vol. 12(13), pages 1-35, July.
    7. Castellanza, Luca, 2022. "Discipline, abjection, and poverty alleviation through entrepreneurship: A constitutive perspective," Journal of Business Venturing, Elsevier, vol. 37(1).
    8. Oge Augustine Sunday, 2024. "The Effects of Financial Literacy Programs on Retirement Planning and Preparedness among Middle-Aged Adults in Oyo State," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 1058-1071, January.
    9. Antonio Molina-García & Julio Diéguez-Soto & M. Teresa Galache-Laza & Marta Campos-Valenzuela, 2023. "Financial literacy in SMEs: a bibliometric analysis and a systematic literature review of an emerging research field," Review of Managerial Science, Springer, vol. 17(3), pages 787-826, April.
    10. Ngoc Duc Lang & Ha Mai Tran & Giang Tra Nguyen & Duc Hong Vo, 2024. "An Untapped Instrument in the Fight Against Poverty: The Impacts of Financial Literacy on Poverty Worldwide," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 174(2), pages 657-695, September.
    11. Ye, Xiang & Yue, Pengpeng, 2023. "Financial literacy and household energy efficiency: An analysis of credit market and supply chain," Finance Research Letters, Elsevier, vol. 52(C).
    12. Jason Kasozi & Daniel Makina, 2021. "Analysis of financial literacy and its effects on financial inclusion in Uganda," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(3), pages 67-83, July.
    13. Pallavi Dogra & Arun Kaushal & Rishi Raj Sharma, 2023. "Antecedents of the Youngster’s Awareness About Financial Literacy: A Structure Equation Modelling Approach," Vision, , vol. 27(1), pages 48-62, February.
    14. Osvaldo García-Mata & Mariana Zerón-Félix, 2022. "A review of the theoretical foundations of financial well-being," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 145-176, June.
    15. Tracey West & Michelle Cull, 2020. "Future Expectations and Financial Satisfaction," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 318-335, December.
    16. Zhao, Chunkai & Wu, Yaqian & Guo, Jianhao, 2022. "Mobile payment and Chinese rural household consumption," China Economic Review, Elsevier, vol. 71(C).
    17. Long She & Ratneswary Rasiah & Marc Arul Weissmann & Harpaljit Kaur, 2024. "Using the Theory of Planned Behaviour to Explore Predictors of Financial Behaviour Among Working Adults in Malaysia," FIIB Business Review, , vol. 13(1), pages 118-135, January.
    18. Kwee Kim Peong, 2019. "Determinants of Personal Financial Literacy among Young Adults in Malaysian Accounting Firms," GATR Journals gjbssr524, Global Academy of Training and Research (GATR) Enterprise.
    19. Jianmu Ye & KMMCB Kulathunga, 2019. "How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    20. Claude Bernard Lontchi & Baochen Yang & Yunpeng Su, 2022. "The Mediating Effect of Financial Literacy and the Moderating Role of Social Capital in the Relationship between Financial Inclusion and Sustainable Development in Cameroon," Sustainability, MDPI, vol. 14(22), pages 1-24, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16970-:d:1007092. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.