How to Increase Sustainable Rural Tourism Performance? An Empirical Study in Indonesia

Abstract

The primary objective of this study is to examine the influence of social capital, government support, and entrepreneurial orientation on the improvement of sustainable rural tourism performance. Additionally, the study aims to identify a suitable model for enhancing the overall performance of sustainable rural tourism. Using a quantitative model, this study utilized the responses of 400 rural tourism administrators. SmartPLS 3.2 is used as a tool to analyze the collected data. Smart Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to assess the interrelationships among social capital, government support, entrepreneurial orientation, and sustainable rural tourism performance. The findings show a positive impact of social capital and entrepreneurial orientation on sustainable rural tourism performance, but government support does not impact on sustainable rural tourism performance. Furthermore, social capital and government support have a positive impact on entrepreneurial orientation. This study suggests the role of entrepreneurial orientation to increase the influence of social capital and government support on sustainable rural tourism performance. Finally, This research offers a conceptual contribution to authors investigating the sustainable performance of rural tourism. Additionally, it provides practical insights for stakeholders in rural tourism, aiding them in enhancing the sustainable performance of this sector.