The Influence of Financial Literacy, Access to Capital, And Market Orientation on Farm Business Performance with Farmer Satisfaction as A Mediating Variable in Southeast Sulawesi

Abstract

This study aims to analyze the influence of financial literacy, access to capital, and market orientation on farm business performance, with farmer satisfaction as a mediating variable in Southeast Sulawesi. The study employs a quantitative approach with a causal research design and utilizes Structural Equation Modeling–Partial Least Squares (SEM-PLS) to analyze data collected from 210 farmers. This research contributes to the literature by integrating economic and psychological factors into a farm performance model through the mediating role of satisfaction. The results indicate that financial literacy, access to capital, and market orientation have positive and significant effects on farm business performance. Access to capital has the strongest effect on performance (β = 0.356; p < 0.01), followed by market orientation (β = 0.285; p < 0.01) and financial literacy (β = 0.173; p < 0.05). Farmer satisfaction also has a significant effect on performance (β = 0.312; p < 0.01) and is proven to mediate the relationships among variables with partial mediation effects (VAF 22–34%). The model explains 58.7% of the variance in farm business performance (R² = 0.587). These findings highlight the importance of integrating financial, market, and psychological factors in improving farm business performance. The study implies the need for a comprehensive approach to enhancing financial literacy, improving access to financing, and strengthening market orientation.