Mediating Effects of Government Intervention Between Cost–Benefit, Marketing Efficiency, Return on Investment, and Comparative Advantage of Coconut Farming in Malaysia

This study aims to explore the mediating effects of government intervention between cost–benefit, marketing efficiency, return on investment, and comparative advantage of coconut farming in Malaysia. The theoretical foundation of this research is the notion of market failure. Using a structured questionnaire in the form of a Google Form, data were gathered from 123 coconut growers in Malaysia. The data were analyzed using partial least squares structural equation modeling (PLS‐SEM). Across all hypotheses, the significant indirect effect results suggest that government intervention is an essential factor in leveraging the positive outcomes of marketing efficiency, cost‐benefit, and return on investment for greater comparative advantage in coconut farming. It was also observed that government intervention played a mediating role between cost benefit, marketing efficiency, return on investment, and comparative advantage. The results indicate that the moderation effect of the market environment on the relationship between government intervention and comparative advantage is significant at 10%. These findings provided additional support for the current model in the context of coconut production in Malaysia. By emphasizing the importance of contextual factors, integrating external influences into comparative advantage models, and highlighting the need for adaptive strategies, these results enrich existing theoretical frameworks and offer valuable insights for coconut farmers.