How Culture Transforms Government Aid Evidence From Sumbawa Regency, Indonesia
Main Article Content
Abstract
This study investigates how government assistance, family income, and local culture jointly influence economic welfare in Sumbawa Regency, Indonesia. Moving beyond “isolated variable” analysis, this study develops an integrated framework to address policy gaps where social protection outcomes often fall short despite major investments. It extends “welfare state theory” by incorporating cultural dimensions that are typically overlooked in conventional economic models. Using Structural Equation Modeling with Partial Least Squares (SEM-PLS), data were gathered from 201 randomly selected respondents among government aid recipients. Results show significant positive effects: government assistance (β = 0.342, p < 0.01), family income (β = 0.458, p < 0.001), and local culture (β = 0.231, p < 0.05). The model demonstrates strong explanatory power (R² = 0.687) and predictive relevance (Q² = 0.524). Findings reveal that family income remains the strongest welfare determinant, while effective government aid requires proper targeting and allocation. Significantly, local practices like gotong royong (mutual assistance) strengthen social cohesion, validating culture's role as an active economic determinant. This study contributes to Islamic economics literature by demonstrating how local cultural practices aligned with Islamic principles of ta'āwun (cooperation) and maslahah (public interest) enhance welfare outcomes in Muslim-majority contexts where Islamic values shape economic behavior. The research proposes practical recommendations for “culturally-sensitive” assistance programs that integrate Islamic social finance instruments (zakat and waqf) with income enhancement strategies and cultural capital development. its also emphasizes establishing monitoring systems that track both welfare indicators and cultural sustainability. These findings offer replicable frameworks for welfare policy design in developing countries where cultural and religious dimensions fundamentally influence development outcomes.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
References
Badan Pusat Statistik (BPS). Central Bureau of Statistics Data. Jakarta: BPS, 2024.
Chua, Yan Piaw. Quantitative Research Methods: Principles, Procedures, and Applications Using IBM SPSS. Kuala Lumpur: McGraw-Hill, 2022.
Delconte, John, Carol S. Kline, and Carmine Scavo. "The Impacts of Local Arts Agencies on Community Placemaking and Heritage Tourism." Journal of Heritage Tourism 11, no. 4 (2016): 324–33.
Dutta, Mohan J. "Culture-Centered Communication and Social Change: Listening and Participation to Transform Communication Inequalities." In Intercultural Communication, edited by Young Yun Kim, 309–27. Berlin: De Gruyter, 2017.
Ghozali, Imam. Structural Equation Modeling: An Alternative Method Using Partial Least Squares (PLS). 4th ed. Semarang: Diponegoro University Publishing Agency, 2021.
Gielens, Erwin, Femke Roosma, and Peter Achterberg. "Deservingness in the Eye of the Beholder: A Vignette Study on the Moderating Role of Cultural Profiles in Supporting Activation Policies." International Journal of Social Welfare 28, no. 4 (2019): 442–53.
Gradstein, Mark, and Moshe Justman. "Cultural Interaction and Economic Development: An Overview." European Journal of Political Economy 59 (2019): 243–51.
Gründler, Klaus, and Sebastian Köllner. "Culture, Diversity, and the Welfare State." Journal of Comparative Economics 48, no. 4 (2020): 913–32.
Hair, Joseph F., G. Tomas M. Hult, Christian M. Ringle, and Marko Sarstedt. A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). 2nd ed. Thousand Oaks: Sage, 2017.
Henseler, Jörg, Christian M. Ringle, and Marko Sarstedt. "A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling." Journal of the Academy of Marketing Science 43, no. 1 (2015): 115–35.
Huda, Bakhrul. 2022. “Konsep Wisata Halal Dan Hak-Hak Wisatawan Dalam Perspektif Fikih”. El-Qist: Journal of Islamic Economics and Business (JIEB) 12 (1). Surabaya, Indonesia:57-76. https://doi.org/10.15642/elqist.2022.12.1.57-76.
Hudang, Adrianus K., Tri Hariyanto, and Rossanto D. Handoyo. "Does Conditional Cash Transfer Deliver? The Indonesian Evidence on PKH." Business: Theory and Practice 25, no. 2 (2024): 447–57.
Hudson, John, Nam K. Jo, and Antonia Keung. Culture and the Politics of Welfare: Exploring Societal Values and Social Choices. London: Palgrave Macmillan, 2014.
Jacques, Olivier, and Alain Noël. "The Case for Welfare State Universalism, or the Lasting Relevance of the Paradox of Redistribution." Journal of European Social Policy 28, no. 1 (2018): 70–85.
Janda, Constanze. "Freedom, Solidarity and Participation in the Democratic Welfare State." Sozialer Fortschritt 71, no. 10 (2022): 713–29.
Khoerunisa, F., A. Ansori, and N. Widiastuti. "The Impact of Assistance Programs in Improving the Welfare of Cisero Village." Comm-Edu (Community Education Journal) 6, no. 2 (2023): 174–89.
Kotradyová, Veronika, and Marián Ontkóc. "Regional Identity and Its Contemporary Forms as Important Part of Social Sustainability." AIP Conference Proceedings 2574 (2022): 100001.
Mažeikaitė, Kristina. "Assessing the Causal Impact of Culture on Socio-economic Variables in European Countries." Journal of Interdisciplinary Economics 37, no. 2 (2025): 200–19.
Nasrullah, M. A., and R. Annisa. "Analysis of Social Assistance on Community Welfare in Tanah Laut during the Covid-19 Pandemic." Politala Accounting Research Journal 4, no. 2 (2021): 95–101.
Oktavilia, Shanty, Suharno Firmansyah, Fafurida Rahman, Yozi A. Adzim, and Fauzul. "How Creative Economy Development Plays a Role as a Driving Force in Community-Based Tourism Village Development? An Empirical Study in Central Java Province." Journal of Ecohumanism 3, no. 7 (2024): 5008–18.
Tauchid K., Habibullah Yuda, Hari H. Setiawan, and Badrun Susantyo. "Moving beyond Stereotype: A Qualitative Study of Long-standing Recipients of the Indonesian Conditional Cash Transfers (CCT/PKH)." Social Policy and Administration 58, no. 1 (2024): 108–21.
Ticona, Alejandro M., et al. "Public Policy for Human Capital: Fostering Sustainable Equity in Disadvantaged Communities." Sustainability 17, no. 2 (2025): 535.
Wahbi, A. A., Syahrudi, and P. Ariwibowo. "The Effect of Income on Family Welfare in the Convection Industry in Bulak Timur Village, Depok, West Java." Referensi: Journal of Management and Accounting Sciences 8, no. 1 (2020): 52–60.
Watson, Tamlin L., Laura M. Kubasiewicz, Natasha Chamberlain, Caroline Nye, Zoe Raw, and Faith A. Burden. "Cultural ‘Blind Spots,’ Social Influence and the Welfare of Working Donkeys in Brick Kilns in Northern India." Frontiers in Veterinary Science 7 (2020): 214.
Wong, Ken Kwong-Kay. Mastering Partial Least Squares Structural Equation Modeling (PLS-SEM). Newark: Streamline Press, 2019.