Jurnal Manajemen & Agribisnis

The Influence of Product Innovation, HR Competence, and Marketing Performance on The Financial Performance of MSMEs in The Agricultural

DC. Kuswardani — 2024-11-30

Background: Many MSMEs are switching to online businesses and utilizing digital technology to maintain their businesses.
Purpose: This study aims to determine and examine the effect of product innovation, HR competency, and marketing performance on the financial performance of MSMEs in the Agricultural Sector in Semarang City after the Covid-19 pandemic with digitalization as a mediating variable.
Design/methodology/approach: This study uses quantitative methodology and a causal associative approach. Data was collected through an online questionnaire distributed to MSME owners in the Agricultural Sector via WhatsApp, with questions filtered based on respondent characteristics. The sampling technique used was random sampling. The number of samples in this study was 150 business owners. Data analysis used partial least squares-structural equality modeling (PLS-SEM).
Findings/Results: The results of this study indicate that product innovation, marketing performance, and digitalization have a significant effect on financial performance. Meanwhile, HR competency has had no significant effect on the financial performance of MSMEs in the Agricultural Sector in Semarang City after the COVID-19 pandemic. Digitalization has been proven to mediate the influence of product innovation, HR competency, and marketing performance on the financial performance of MSMEs in the Agricultural Sector in Semarang City.
Conclusion: Product innovation, marketing performance, and digitalization have a significant effect on financial performance. Meanwhile, HR competency has not had a significant effect on the financial performance of MSMEs in the agricultural sector in Semarang City since the COVID-19 pandemic. Digitalization is proven to mediate the influence of product innovation, HR competency, and marketing performance on the financial performance of MSMEs in the Agricultural Sector in Semarang City.
Originality/value (State of the art): State of the art in the era of digital transformation. Given that digitalization is increasingly becoming an important part of the global economy, this study is relevant to the current trend of digital technology adoption by MSMEs. This study can broaden the understanding of how small and medium-scale MSMEs can utilize digitalization to improve their competitiveness and financial performance, which is a growing research area globally.

Keywords: digital transformation, HR competency, marketing performance, MSME finance, product innovation

The Added Value of Bio-Business Product Diversification of Nutmeg (Myristica Fragrans) in North Maluku Province

Arnelia Palijama — 2024-11-30

Background: Nutmeg (Myristica fragrans) is a native Indonesian plant that thrives in North Maluku Province. However, as one of the centers of nutmeg production, North Maluku is still lacking in carrying out nutmeg processing industry activities compared to other centers. Bio-business activities in the form of nutmeg product diversification have the potential to provide high economic value.
Purpose: The objectives of this study are: first, to describe the nutmeg bio-business in North Maluku. Second, to analyze the added value obtained from the diversification of nutmeg products in North Maluku.
Design/methodology/approach: The study was conducted from February to March 2024 in North Halmahera Regency and Ternate City, with a sample of 108 nutmeg farmers and 4 business actors. The study used a quantitative approach with a descriptive method from primary data. Furthermore, industrial trees were used in the study to provide an overview of the various types of products that can be produced from nutmeg commodities. Meanwhile, the Hayami method was used to determine the increase in added value from the diversification of nutmeg products.
Finding/Result: The results of the study found that nutmeg bio-business activities in North Maluku Province resulted in product diversification from processed fruit skin, fruit flesh, seeds, and mace. Meanwhile, the highest added value of nutmeg product diversification in North Maluku is obtained from dried nutmeg seeds, nutmeg steam herbal medicine, nutmeg oil, and dried mace.
Conclusion: The production of processed nutmeg products is still carried out as a home industry. There are nineteen (19) processed products that can be produced from nutmeg in North Maluku, as depicted in the industrial tree. The calculation of added value takes into account the proportion of nutmeg fruit to be processed products. Analysis of the added value of processed nutmeg products is carried out by calculating the added value per kilogram of nutmeg raw material for one production process.
Originality/value (State of the art): This study is the first to analyze the added value of nutmeg bio-business product diversification in North Maluku Province.

Keywords: Hayami method, home industry, industrial trees, nutmeg center, nutmeg processing

Credit Access as a Nexus of Profitability: The Resilience of Smallholder Broiler Contract Farming

Lisa Dwi Lestari — 2024-11-30

Background: The unequal access to resources in the broiler industry hinders smallholders from competing effectively. To address this issue, farmers are being urged to engage in contract farming as a means to boost profits and improve access to credit. However, despite efforts to facilitate credit disbursement, empirical studies indicate that poultry farm loans are underutilized. These studies also demonstrate that not all farmers consistently benefit from increased profits and improved credit access.
Purpose: This research was conducted to answer the nexus between credit access and profitability. Furthermore, this study reviews the problems and the role of contract farming on farmers' credit access.
Design/methodology/approach: The investigation encompassed an analysis of 51 broiler plasma farmers affiliated with an integrator company in West Java. To elucidate the research objectives, a profitability analysis was conducted, employing both gross margin assessment and the Ordinary Least Squares (OLS) method within a multiple regression framework.
Findings/Result: The research findings elucidate that profitability among farmers is not guaranteed, with operational losses frequently attributed to negligence, adverse climatic conditions, and disease outbreaks. Consequently, some farmers must seek financial credit to sustain working capital and facilitate business expansion. Specifically, investment credit is allocated for the enhancement or construction of cages and equipment, whereas working capital credit aims to expedite the turnover of operational expenses. An Ordinary Least Squares (OLS) regression analysis revealed significant determinants of profit, including access to credit, flock size, ownership of cages and land, employment of hired labor, and the farmer's age. Parameter estimation further delineated that, ceteris paribus, farmers who engaged in credit utilization reported substantially higher profits, amounting to IDR11,949 million more than their counterparts who did not access credit. It is noteworthy that credit application processes that bypass integrator companies necessitate sufficient collateral to secure the loans, limiting access to bank credit strictly to farmers who possess adequate collateral. According to the survey data, a mere 13,7%. The role of contract farming in mitigating the asymmetry of information regarding credit access remains suboptimal.
Conclusion: The results rejected the hypothesis that credit access does not affect profit. However, farmers' utilization of credit access is relatively small and the distribution of credit access among plasma farmers engaged in contract farming is characterized by inequity.
Originality/value (State of the art): This study addressed the vital role of credit access toward farmers’ profitability. This study combined Ricardo's theory and principal agency theory, applied to contract farming in the broiler industry. This sharpened the importance of the integrator company's role in providing capital and financing facilities to farmers based on the principle of risk sharing, thereby reducing the company’s risk.

Keywords: contract farming, gross margin, credit access, broiler, smallholder

Unraveling The Dynamics Price Volatility and Risk of Live Broiler Chicken in Jawa Tengah Province

Mutia Ayu Safitri — 2024-11-30

Background: Jawa Tengah Province is one of the main broiler production centers in Indonesia, but fluctuations in live chicken prices in this area remain a big problem for farmers.
Purpose: This study aims to (1) determine the volatility of live broiler chicken prices in Jawa Tengah Province, and (2) understand the level of price risk for live broiler chickens in Jawa Tengah Province.
Design/methodology/approach: This research uses secondary time series data from January 2016 to February 2024 with ARCH-GARCH (Autoregressive Conditional Heteroskedasticity and Generalized Autoregressive Conditional Heteroskedasticity) and CCV (Conditional Coefficient Variance) analysis tools.
Finding/Result: The results showed that (1) the volatility of broiler prices in Jawa Tengah Province is influenced by the variance and volatility of the previous period, and (2) the level of risk of broiler prices in Jawa Tengah Province is low.
Conclusion: To estimate the price of live broilers in Jawa Tengah province in the next period the price reference used is the previous period broiler price data and farmers can produce broilers with an independent system.
Originality/value: This study uses CCV (Conditional Coefficient Variance) to describe market risk from two perspectives, namely producers and consumers.

Keywords: price reference, price risk, live broiler chicken, ARCH-GARCH, CCV

Effect of Knowledge and Awareness on Cooperative Membership: Role of Socio-Demographic Profile in Cavite, Philippines

Leo Manansala — 2024-11-30

Background: Membership in cooperatives is crucial for fostering collective strength and sustaining the organization, enhancing its ability to serve members effectively. By comprehending the factors influencing membership, cooperatives can develop targeted recruitment strategies, bridging gaps in effective recruitment and involvement in Philippine cooperatives.
Purpose: This study delves into how knowledge and awareness levels impact cooperative membership while examining how socio-demographic factors like age, gender, education, and income moderate these relationships among members and non-members.
Design/methodology/approach: Data from 764 respondents, including cooperative members and non-members from the top 30 cooperatives in Cavite, Philippines, binary logistic regression and diagnostic tests were utilized.
Findings/ Results: The study reveals that educational initiatives are vital for promoting cooperative engagement, with higher knowledge levels significantly increasing the likelihood of membership. Demographic factors such as age and gender were found to moderate the influence of education and income on cooperative membership, indicating the need for more tailored and inclusive policies. The research shows that older individuals were less influenced by awareness efforts, while those with higher education were more likely to join cooperatives when well-informed. Although there were mixed effects of demographic factors on the relationship between awareness and membership, these effects were not statistically significant, suggesting that more detailed examination is needed.
Conclusions: The study concludes that educational initiatives significantly enhance cooperative membership, particularly when tailored to specific demographic groups. Age and gender moderate the effect of knowledge and education, emphasizing the need for customized policies. However, further research is needed as demographic effects on awareness and membership were not statistically significant.
Originality/ value (State of the art): The study stems from its novel examination of the interplay between knowledge, awareness, and socio-demographic factors in influencing cooperative membership, particularly in Philippine cooperatives. It adds value in providing actionable insights for cooperative policymakers, enabling the design of more targeted, inclusive recruitment strategies that address demographic diversity and promote sustainable cooperative growth.

Keywords: customized policies, demographic factors, cooperative engagement, cooperative membership, Philippines

Competitiveness of Indonesia's Agricultural Exports To China: Trends and Strategic Insights

Tanti Novianti — 2024-11-30

Background: Economic development in open economies like Indonesia was marked by international trade. Starting with the restoration of diplomatic relations in 1990, China emerged as one of the biggest trading partners for Indonesia. However, Indonesia's competitiveness in the international market remained at a concerning level compared to other major exporters.
Purpose: The research was conducted on the competitiveness of Indonesia's agriculture exports to China during 2019-2023, for certain commodities, and described Indonesia's current market position and growth prospects.
Design/Methodology/Approach: The paper applied the Revealed Comparative Advantage and the methodologies of Export Product Dynamics in order to judge Indonesia's competitive position in major agricultural products, such as coconut, cashew nut, Brazil nut, coffee, nutmeg, cardamom, palm oil, copra, and natural rubber.
Findings/Result: The analysis showed that nutmeg and cardamom showed outstanding growth, placing them in the "Rising Stars" status in the Chinese market, as evidenced by their high export share growth coupled with a high increase in global market share. On the other hand, palm oil and copra recorded negative competitiveness, leading into the "Retreat" quadrant.
Conclusion: The study suggested that to build Indonesia's competitiveness in agricultural exports, it was important to improve quality and value addition through processing, besides non-tariff barrier understanding. These strategies would further fortify Indonesia's market position and trade performance at large with China and globally.
Originality/value (State of the art): For the first time, this research performed updated research on agri-food products export competitiveness of Indonesia to the Chinese market, by using updated data availability (2019-2023) and combined methodology approach between RCA and EPD. The obtained insights would be very important guidance for policymakers in the formulation of endorsing better trade policies in agricultural commodities within Indonesia to increase its presence in world markets.

Keywords: agricultural commodities, business analytics, business policy, market position, international trade

Food Security On Dryland Farm Households in Selo Sub-District, Boyolali District

Novri Eka Nur Hasanah — 2024-11-30

Background: Population growth has led to an increase in the participation rate of rice consumption. This has led to constant pressure on the limits of food supply. Meanwhile, the uneven distribution of food causes food inequality in local areas. These conditions will cause some regions in Indonesia not to achieve food security, even though food availability is sufficient, if people's food access is not good and food utilization is not in accordance with the rules of balanced and safe nutritious food consumption, then the area cannot be categorized as achieving food security. Drylands have great potential and role in supporting national food availability. Food security at the national or regional level does not automatically guarantee the achievement of food security at the household level.
Purpose: This study aims to 1) assess the level of food security of dryland farmer households and 2) analyze the factors affecting the food security of dryland farmer households in the Selo Subdistrict.
Design/methodology/approach: Sampling was done by simple random sampling from a sample frame of dryland farmer groups totaling 100 respondents. Household food security was analyzed using the Food Insecurity Experience Scale (FIES) indicator. The factors influencing household food security were analyzed using binary logistic regression.
Findings/Result: The prevalence rate of moderate food insecurity is 10.74% of total households in the Selo Subdistrict. Farmer households in the Selo Subdistrict experiencing moderate food insecurity is a serious problem that must be addressed immediately. Although the prevalence rate is relatively small, the actual number is relatively large. The prevalence rate of severe food insecurity in the Selo Subdistrict is 0.00% of total households. The food security status shows that most households in Selo Sub-district fall into the food security category with the majority of households being food producers. Factors that significantly influence the food security status of dryland farming households in the Selo Subdistrict are the length of education of the household head, the number of household members, the ratio of expenditure on rice, and the total household income.
Conclusion: The prevalence value of the moderate food insecurity category amounted to 10,74%. The most significant factor is the ratio of household expenditure on rice with an Exp (B) value or odds ratio of 401,150.611. The unstable price of rice has led most households to reduce the amount of rice purchased.
Originality/value (State of the art): This study explains that dryland farmer households still have a moderate food insecurity category, although the number is small but must be considered. The rice expenditure ratio is an important factor in influencing food security status which has implications for more optimized government policies.

Keywords: binary logistic regression, food security, food insecurity experience scale (fies), household

Factors Influencing Labor Allocation in Rubber Plantations in Muaro Jambi Regency

Siti Sarah Almuizzah Nasution — 2024-11-30

Background: Production and the number of smallholder rubber farmers in Muaro Jambi Regency have decreased over the past ten years. The decrease in production and the number of rubber farmers are believed to be caused by a decrease in the labor allocation in rubber plantations. Rubber farmers now focus on more than just one commodity, and farmers have diversified their income resources, such as oil palm plantations and off-farm work. As a result, household economic decisions will be related to labor allocation.
Purpose: This study aims to analyze the labor allocation in rubber farmer households and identify the factors influencing labor allocation in rubber plantations in the Muaro Jambi Regency.
Design/methodology/approach: This research used primary data from one hundred rubber households using a multistage random sampling method. The estimation was done in two steps: in the first step, shadow wages were estimated using the production function to get the value marginal product of labor, and in the second step, the instrumental variable method was used to determine the factors influencing labor allocation in rubber plantations.
Findings/Results: The estimation shows that shadow wages, oil palm labor allocation, and non-rubber income significantly influence rubber labor allocation. This result indicates that the existence of oil palm plantations does not cause a decrease in rubber labor allocation, and shadow wages can be a determining factor in labor allocation.
Originality/value (State of the art): This study focuses on how rubber farmer households allocate their labor across rubber plantations, other farms, and off-farm work in the context of the presence of other commodities, particularly oil palm, which is developing alongside rubber in the research area. The results show how farmers make decisions regarding their rubber plantations, switch to oil palm, or do off-farm work, which is the reason why they began reducing labor allocation to their rubber farms.

Keywords: labor allocation, household economics, shadow wages, instrumental variable, rubber plantations

Food Supply Chain Network and Market Analysis of Shallot in Indonesia (Case Study: Brebes District)

Venty Fitriany Nurunisa — 2024-11-30

Background: Brebes District, recognized as the largest shallot producer in Indonesia, continues to face challenges in ensuring the welfare of its shallot farmers. This situation emerged from a complex network of stakeholders involved in shallot agribusiness in the Brebes District, characterized by a significant presence of intermediaries.
Purpose: This research aims to i) analyze the shallot supply chain in the Brebes District by applying the Food Supply Chain Network (FSCN) approach and ii) examine its performance through marketing margin and farmer share.
Design/methodology/approach: Data was gathered through interviews with 83 shallot farmers and 12 marketing actors in the Brebes District. Additionally, a Focus Group Discussion (FGD) was conducted to gather strategic insights from all stakeholders involved in the shallot agribusiness in the Brebes District. The research used a qualitative approach to answer the FSCN analysis and a quantitative approach to measure the supply chain performance.
Findings/Result: This study identified that the supply chain had clear objectives and structured relationships between actors. However, it was not optimized because the business process was not integrated into the long term. The supply chain involved multiple marketing channels, where each level of intermediary had involvement and impact on farmer share and margins. More direct marketing channels, such as Marketing Channel I, where farmers sell directly to village traders, offer the highest farmer share (89%) due to the absence of intermediaries like wholesalers. In contrast, channels involving more intermediaries, such as wholesalers in Channels III and V, result in higher total margins but a lower farmer share (81%).
Conclusion: The FSCN analysis of shallots in the Brebes District reveals a complex marketing system with various channels. Direct marketing channels give farmers the highest share by removing intermediaries, while those with more intermediaries offer higher total margins but lower farmer shares. Reducing intermediaries is recommended to boost farmer incomes. Additionally, inefficiencies like poor coordination and limited access to market information hinder overall performance.
Originality/value (State of the art): This study introduces a novel application of the FSCN approach to comprehensively analyze the shallot supply chain in Brebes District, Indonesia. The FSCN offers insights into the complex relationships between farmers, traders, and other actors, their challenges, and the potential for improving the system's efficiency.

Keywords: shallot, information sharing, marketing actors, marketing channels, supply chain efficiency

Leading Inclusive Growth: Comparing Business Models in The Coffee Value Chain, West Java Province

Heti Mulyati — 2024-11-30

Background: Smallholders play a critical role in the coffee value chain within West Java Province, with the majority of coffee production originating from their plantations. However, the initiative and involvement of coffee farmers in the value chain remain limited. Consequently, it is imperative to implement an inclusive business model that ensures the participation of all stakeholders.
Purposes: This study examines the diversity of inclusive business models in West Java‘s coffee value chains, focusing on collectors in Pangalengan and Lembang, coffee shops with roasteries in Bogor, and farmers’ cooperatives in Garut.
Design/Methodology/Approach: Using value chain mapping, business model canvas analysis, and semi-structured interviews with key stakeholders, it explores how these lead firms integrate smallholder farmers into their business models while balancing profit and social impact. The analysis revealed distinct inclusivity approaches across the models, underscoring the significance of adapting strategies to specific regional contexts.
Findings/Result: The collector model in Pangalengan and Lembang prioritizes efficiency and market access but may overlook the nuanced needs of farmers. Conversely, the Bogor coffee shop and roastery model fosters direct farmer relationships, promoting quality and shared decision-making. The cooperative in Garut emphasizes collective action and farmer empowerment, although it faces challenges related to governance and market access.
Conclusion: This study identifies the key factors for successful inclusive business practices in coffee value chains. Enhancing coffee value chain inclusivity requires robust stakeholder engagement, particularly with smallholders, empowering training, knowledge sharing, and rigorous monitoring and evaluation.
Originality/Value/state of the art: These insights include the need for context-specific business models, external actor collaboration, a holistic value-creation perspective, and continuous learning and adaptation.

Keywords: business models canvas, coffee value chain, inclusive business, West Java Province, value chain mapping