Improvement of economic and sustainability performance of agribusiness management using ecological technologies in Indonesia
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 11 October 2019
Issue publication date: 27 May 2020
Abstract
Purpose
The purpose of this paper is to evaluate the implications of and assess the economic and sustainable impact of environmentally friendly technological packages introduced into agribusiness players in the centre of chilli-producing regions of Indonesia.
Design/methodology/approach
This study used a theory of optimisation in production as a fundamental analysis. Producers are assumed to maximise profit by allocating rational amounts of inputs as the components of technological packages. A combination of qualitative and quantitative methods was used. The rate of technology adoption was evaluated, and agribusiness performance was measured using an economic advantage and technical efficiency. Data were compiled using group discussions and individual surveys.
Findings
The packages of technologies improved economic and sustainability performance of agribusiness resulting from efficient use of agrochemicals and water resource, and increase the production. Socio-economic and technical factors influenced performance farmers, as agribusiness players responded positively towards the ecological technology packages.
Research limitations/implications
The sustainability of agribusiness was indicated by the reduction in agrochemical use and by the efficient use of water irrigation. There are other measures of sustainability, which are beyond this study. Additional studies are expected to fill the gap.
Practical implications
Considerable potential exists for broad adoption of these technological packages in Indonesia if they are disseminated effectively and in a close partnership with local extension agencies, farmers’ organisations, local non-governmental organisations and private sectors.
Originality/value
This study provides a realistic representation of a current condition because this is an empirical study conducted at the grass-root level. Sustainability of agribusiness practices was achieved with ecological technological packages.
Keywords
Acknowledgements
The author thanks the farmer groups and farmer members who generously gave their valuable time to provide detailed information as required for the analysis. The author also thanks ACIAR for the grant that supported AVRDC – The World Vegetable Center and its consortium of partner institutions to execute the chilli project in Central Java, Indonesia, and ANU-SMERU research grant to support follow-up studies at the same.
Citation
Mariyono, J. (2020), "Improvement of economic and sustainability performance of agribusiness management using ecological technologies in Indonesia", International Journal of Productivity and Performance Management, Vol. 69 No. 5, pp. 989-1008. https://doi.org/10.1108/IJPPM-01-2019-0036
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited