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Strategic Sustainability and Green Actions for Capacity Building and Smallholder Empowerment within FSC-Certified Natural Rubber

In: Proceedings of the 4th International Conference on Management and Business (ICoMB 2025)

Author

Listed:
  • Hendy Endarwan

    (Perbanas Institute)

  • Gary P. Etwanto

    (Perbanas Institute)

  • Tiolina Evi

    (Perbanas Institute)

  • Aliy Rasid

    (Universitas Pertiwi)

  • Zian Fachrian

    (Sekolah Tinggi Ilmu Ekonomi IGI)

Abstract

This study explores the strategic integration of sustainability and green capacity-building to empower smallholder farmers in the FSC-certified natural rubber supply chain in Indonesia. Using a quantitative approach with Structural Equation Modeling Partial Least Squares (SEM–PLS), data from 105 smallholders participating in the FSC Sharing Program were analyzed to examine the relationships among Green Capacity Building, Sustainability Awareness, Sustainability Performance, Smallholder Welfare, and Institutional Engagement. The results reveal that Green Capacity Building significantly enhances Sustainability Awareness, which, in turn, strongly influences Institutional Engagement, demonstrating a mediating effect. Meanwhile, Sustainability Performance and Smallholder Welfare directly affect Institutional Engagement without mediation. The model’s explanatory power is high (R2 = 0.911), indicating strong predictive validity. These findings highlight the strategic importance of integrating green capacity-building and awareness programs to strengthen institutional collaboration and promote inclusive, sustainable development in the natural rubber industry.

Suggested Citation

  • Hendy Endarwan & Gary P. Etwanto & Tiolina Evi & Aliy Rasid & Zian Fachrian, 2026. "Strategic Sustainability and Green Actions for Capacity Building and Smallholder Empowerment within FSC-Certified Natural Rubber," Advances in Economics, Business and Management Research, in: Johannes Maysan Damanik & Md. Mahmudul Alam & Suddin Lada (ed.), Proceedings of the 4th International Conference on Management and Business (ICoMB 2025), pages 211-226, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-656-2_17
    DOI: 10.2991/978-94-6239-656-2_17
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