The Dynamics of Business Climate, Strategic Networking, and Business Performance in Small-Scale Capture Fisheries: Lessons from Indonesia’s Archipelagic Fisheries Zone

Small-scale capture fisheries play a vital role in supporting food security and local livelihoods in developing countries, particularly in Indonesia's archipelagic regions.However, their performance often faces structural challenges such as unstable regulations, limited market access, and weak institutional support.This study aims to analyze the influence of the business climate and strategic networking on the business performance of small-scale capture fisheries operating within Fisheries Management Area (WPP) 714 in Maluku Province.Using a quantitative explanatory approach, data were collected from 200 fishers, of which 192 valid responses were retained for final analysis using PLS-SEM.The results show that both the business climate (β = 0.444; p < 0.001) and strategic networking (β = 0.449; p < 0.001) have a positive and significant effect on business performance, jointly explaining 69.7 percent of its variance (R² = 0.697) with strong predictive relevance (Q² = 0.520).These findings indicate that a conducive business environment supported by consistent regulations, institutional assistance, and market stability enhances efficiency, profitability, and sustainability among small-scale fishers.In addition, strategic networking fosters collaboration, resource sharing, and innovation, allowing fishers to adapt more effectively to market and environmental changes.The results align with the Resource-Based View and Social Capital Theory, emphasizing that institutional and relational resources are key drivers of competitiveness.Overall, this study concludes that improving institutional frameworks, strengthening cooperative partnerships, and developing market infrastructure are essential policy priorities to build resilience, competitiveness, and sustainable growth within Indonesia's smallscale fisheries sector.