Farmer groups occupy a strategic position in Indonesia’s agricultural development, yet their performance depends heavily on the quality of leadership exercised within a strong local socio-cultural setting. This study examines the influence of local wisdom-based leadership characteristics and leadership style on farmer group performance, with wellbeing as a mediating variable, among farmer groups in Banyuasin III, South Sumatra. Using a quantitative explanatory design, data were collected through questionnaires from 223 respondents and analyzed with Structural Equation Modeling based on Partial Least Squares (SEM-PLS), including evaluation of the measurement and structural models and hypothesis testing through bootstrapping. The results show that local wisdom-based leadership has a significant positive effect on wellbeing, and wellbeing has a significant positive effect on performance, with wellbeing fully mediating the effect of local wisdom-based leadership on performance. Leadership style, in contrast, shows no significant direct or indirect effect on either wellbeing or performance. These findings confirm that leadership rooted in local cultural values is more effective than conventional leadership styles in strengthening the performance of community-based agricultural organizations through improved member wellbeing, offering practical direction for farmer empowerment programs in Indonesia.
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