The Role of Social Capital in Supporting Sustainability Wood Processing Industry
Keywords:
Blora, Business Sustainability, Social Capital, Wood Processing IndustryAbstract
The wood processing industry in Blora plays a strategic role in strengthening the local economy and providing employment opportunities for the surrounding community. This study aims to analyze the role of social capital in supporting business sustainability in the wood processing industry at UD Ngudi Seni Gembol, Blora. This research uses a qualitative descriptive method with a case study approach. The research was conducted at UD Ngudi Seni Gembol, Blora Regency. The data used comprises primary and secondary data collected from business owners, workers, consumers, and related stakeholders. Data collection techniques include in-depth interviews, direct observation, and documentation. Data analysis was carried out using data reduction, data presentation, and conclusion drawing. The results show that social capital plays a significant role in strengthening trust, social norms, and social networks among business actors, consumers, and the community. Strong relationships help maintain production stability, expand market access, and increase customer loyalty. Despite challenges such as high logistics costs and industry competition, strong social capital supports business resilience and drives a 225.6% increase in revenue. Therefore, social capital becomes an important asset that supports the sustainability and competitiveness of the wood processing industry. This study concludes that strengthening social networks, maintaining trust, and developing collaborative norms are essential strategies to ensure long-term business sustainability and economic contribution in the Blora wood processing industry.
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