A CAPABILITY APPROACH TO DIGITALIZATION AND RURAL ENTREPRENEURIAL ATTITUDE (CASE STUDY IN KAMASAN VILLAGE & KINTAMANI RURAL AREA)

• Main Author: Savira, Medina
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47648
• Institution: Institut Teknologi Bandung

Entrepreneurship is one of the survival strategies in rural areas. The core of the entrepreneurial activity is an entrepreneurial attitude that consists of the introduction of opportunities and risk-taking. This research proposes that digitalization in rural can be useful for forming an entrepreneurial attitude. However, not all rural communities are able and able willing to utilize digital technology due to their preferences. This research aims to identify the impact of digitalization on the entrepreneurial attitude in a rural area using a capability approach. The capability approach is used to understand the valuation of entrepreneurs towards the value of technology digital. If the entrepreneur considers technology digital as valuable resources, they will try to build the capability to utilize technology digital in business development. Otherwise, if the technology digital is not considered as valuable resources, they will not try to build the capability to utilize technology digital in business development. This research uses multiple case studies, namely Kamasan Village (culture-based entrepreneurship) and Kintamani Rural Area (agricultural-based entrepreneurship) in Bali province. The data collection was performed with semi-structured interviews. The informants are selected with purposive sampling and snowball sampling. The data obtained were analyzed using constant comparison techniques assisted with pattern matching and explanation building The results showed that digitalization affects the formation of the entrepreneurial attitude of entrepreneurs who have the capability to use technology digital. In utilizing technology digital, the entrepreneurs in both cases studies are influenced by the same conversion factors, namely personal factors (age, experience, and education background), social and environmental factors (encouragement of others and provision of infrastructure). Even though they have the same conversion factors, entrepreneurs in both case studies have different capabilities in utilizing technology digital. By comparing the two cases, it is also known that the formationiv of entrepreneurial attitudes is also influenced by the type of entrepreneurship and entrepreneurial motives. The use of a capability approach in this research gives us a new perspective that is important to understand individual perspectives in order to encourage the development of entrepreneurship in rural areas. Intervention at the individual level, namely conversion factors, is needed to encourage the formation of entrepreneurial attitudes. Interventions on conversion factors will help entrepreneurs build their capabilities in utilizing digital technology.