The Influence of Local Business Behaviour on Community Participation, Social Capital, Economic Costs, and Environmental Costs in Controlling the Environment Towards Sustainable Ecotourism

Abstract

Abstract Local business actors play an important role in realizing sustainable ecotourism through good business governance. Various strengthening actions are needed, one of which is in terms of environmental costs in business development. This research aims to analyze how business behavior can influence community participation, social capital, economic costs and environmental costs in sustainable ecotourism management efforts in Padusan Village, Pacet District, Mojokerto Regency. Local business behavior through community participation can shape the social capital that occurs in Padusan Village. This research on business behavior uses quantitative descriptive methods with SEM-PLS analysis. A total of 178 questionnaires were distributed to the community and ecotourism business owners in Padusan Village. The research results show that business behavior has a significant effect on community participation, social capital, environmental costs, and economic costs both directly and indirectly. Ecotourism business behavior has an indirect negative influence on environmental costs through the mediating variable of economic costs. Apart from that, business behavior also has a significant influence on social capital, both directly and indirectly. The indirect positive influence of ecotourism business behavior on social capital occurs through the participation and involvement of local communities in business activities. Based on the research results, it shows that ecotourism business behavior has an impact on the environmental costs that must be incurred as well as social capital in local community participation. So business people need to implement good environmental control strategies by adopting Environmental, Social, and Governance (ESG) measures to achieve sustainable ecotourism goals.