Search results
1 – 10 of 25Henny Indrawati, Caska Caska, Neni Hermita, Sumarno Sumarno and Almasdi Syahza
An important global issue is the harm that businesses are posing to the environment. However, the impact of small and medium enterprises’ (SMEs) operations on the environment…
Abstract
Purpose
An important global issue is the harm that businesses are posing to the environment. However, the impact of small and medium enterprises’ (SMEs) operations on the environment often goes unnoticed, and their willingness to adopt green innovations is limited. Therefore, this study aims to examine the factors influencing the adoption of green innovation among SMEs in Indonesia.
Design/methodology/approach
The research used a survey to investigate SMEs operating in the pineapple-based food sector, which is a leading commodity in Riau Province, Sumatera, Indonesia. Specifically, the research focused on the districts of Kampar, Siak and Dumai, with data collecting taking place from April to August 2022. SMEs were selected purposively based on a minimum operational tenure of 10 years. A total of 225 respondents met the selection criteria and participated in this study. The research data were collected through a questionnaire. To analyse the data, the study used structured equation modelling with partial least squares.
Findings
There are three categories of factors influencing SMEs to adopt green innovations: technological, environmental and organizational. Of these factors, organizational factors emerge as the primary determinant of green innovation adoption among SMEs in the country.
Research limitations/implications
The generalizability of the findings in this study is limited due to the specific focus on food sector SMEs in Riau Province. To obtain more generalized results, it is recommended that future research be conducted on SMEs across different sectors in other cities and countries.
Originality/value
This study provides a deeper understanding of the specific dimensions of organizational factors that play a crucial role in driving green innovation adoption, especially within the context of SMEs in the food sector in Indonesia.
Details
Keywords
Joko Mariyono, Jaka Waskito, Apri Kuntariningsih, Gunistiyo Gunistiyo and Sumarno Sumarno
The purpose of this paper is to analyse the distribution channels of vegetable sectors in Indonesia, its economic impact on the performance of vegetable sales and the factors…
Abstract
Purpose
The purpose of this paper is to analyse the distribution channels of vegetable sectors in Indonesia, its economic impact on the performance of vegetable sales and the factors affecting marketing channels selected by producers.
Design/methodology/approach
The study employed qualitative and quantitative methods. A market survey was qualitatively conducted at producer, intermediary, wholesaler, hotel and food processing company as well as retailer levels. Producer survey was quantitatively conducted at the farm level, by interviewing 556 randomly selected farm households. Structural equation modelling was employed to accomplish the objectives of the study.
Findings
Marketing channels for vegetables in Indonesia was complex and relatively long. Farmers decided to select particular channels because of business circumstance and their knowledge. Distance and gentleman’s agreement with traders limited farmers to choose the desirable marketing channel. Marketing channels affect business performance in terms of high sales and profit.
Research limitations/implications
This study only pays attention to the supply side of vegetables. The effect of marketing channels also encumbers the consumers, which are beyond this study. Other studies are expected to highlight the consumer side.
Originality/value
This study focused on smallholder agribusiness players. This study uses two surveys as data sources: market survey and producer survey. The market survey serves as vital information to design producer surveys.
Details
Keywords
Joko Mariyono and Sumarno Sumarno
Chilli plays an important role in the Indonesian economy through its multiplier effect. The recent rapid growth of chilli production in Indonesia can be explained by the…
Abstract
Purpose
Chilli plays an important role in the Indonesian economy through its multiplier effect. The recent rapid growth of chilli production in Indonesia can be explained by the development of agricultural and communication technologies and improved market infrastructure. The purpose of this paper is to analyse factors that affect farmers’ decisions to adopt chilli-based agribusinesses. Intensive chilli farming, as a part of agricultural commercialisation, is considered a technological package that is more profitable but also more input- and labour-intensive than the production of rice or other cereal crops.
Design/methodology/approach
This study used a logit model to estimate the farmers’ decision function. Personal characteristics, technical factors and business environment were hypothesised to influence farmers’ decisions to adopt intensive chilli farming. Data for this study were compiled from surveys conducted during 2009-2011. The surveys interviewed 300 farmer households in three main chilli producing regions of Java, Indonesia.
Findings
The results indicate that younger farmers, and also farmers with more experience, were more likely to adopt chilli farming. Availability of chilli production technology and the use of mobile phones prompted farmers to adopt chilli farming. Access to vegetable markets, credit, and market information were other factors driving farmers’ decisions to take up chilli production. Most farmers were motivated to grow chilli to increase their incomes. Ecological factors were also the reasons.
Research limitations/implications
The sample for this research is quite low. However, the sample was drawn from representative potential chilli production areas in Indonesia.
Originality/value
There is room to increase the number of chilli-based agribusinesses in Indonesia. Intensive chilli farming should be introduced to young farmers and those with experience in vegetable production. Farm credit, market information, and agronomic technologies should be made more available and accessible to farmers. Strengthening communication networks among farmers through the use of mobile phones is the best way to encourage farmers to adopt intensive chilli farming. Vegetable markets should be established in potential chilli producing regions.
Details
Keywords
Ainol Mardhiah, Dadang Rakhmat Hidayat, Agus Rahmat and Nuryah Asri Sjafirah
Purpose – This study aims to explore the composition of women parliament members in provincial parliament in Aceh Province.Design/Methodology/Approach – The study which applied…
Abstract
Purpose – This study aims to explore the composition of women parliament members in provincial parliament in Aceh Province.
Design/Methodology/Approach – The study which applied qualitative approach. The data were collected through interviews, observations and documentation study.
Finding – The findings show that the DewanPerwakilan Rakyat Aceh (DPRA) (provincial parliament) women representative are not in line with the order of election Regulation No. 12 the year 2003 which state should be an “affirmative action” or reaches about 30% of total members. In addition, ironically that women are not playing important and strategic roles, such as a chairman, deputy chairman, in each commission, discussion division, budgeting division, and regulation division. The biggest challenge of women parliament members in campaigning their rights and responsibilities at the parliament so that they would be improved in quality and capacity, as well communication and personal knowledge. Furthermore, building stronger linkages internally and externally (political parties, fraction, and all other parliament members), and (stakeholders, peer groups, NGOs, academics, expert etc).
Practical Implications – The solutions offered in this paper can be of concern to all parliamentarians to be able to provide equal opportunities for women legislative members in a strategic position in parliament.
Originality/Value – In addition to increasing the theoretical understanding of the political communication and the importance of the presence of the women in the local parliament.
Details
Keywords
Ricardo Lima, Victoria Barboza de Castro Cunha and Thiago Cavalcante Nascimento
This research aims to describe the factors influencing the tax morale of entrepreneurs in the Brazilian telecommunications industry.
Abstract
Purpose
This research aims to describe the factors influencing the tax morale of entrepreneurs in the Brazilian telecommunications industry.
Design/methodology/approach
The authors surveyed a sample of 167 entrepreneurs from the sector using structured online self-assessment questionnaires analyzed quantitatively through the partial least squares structural equation modeling technique.
Findings
The results indicate that risk of detection, severity of punishments and tax justice represent determining factors for the tax morale of entrepreneurs, though their age also contributes to explaining tax behavior, proving to be a significant control variable. These findings presuppose a predominance of institutional pressures from the regulatory and normative pillars on this group, in contrast to evidence from previous studies dealing with tax morale among ordinary citizens.
Originality/value
The theoretical implications are fourfold. The authors address a gap in the study of tax morale at the organizational level, integrate the entrepreneurship literature in specific sectors with tax policies through neo-institutional theory, support changes in the tax legislation of an emerging economy with widespread biases of corruption and add more diversity to the perceived legitimacy of its current tax system. Practical recommendations include the creation of public policies particularly targeted at younger entrepreneurs predominant in this sector to build a regulatory framework that incorporates both tax justice and severity of punishments to foster trust between taxpayers and tax authorities; using the institutional legitimacy mechanism to elicit a more isonomic performance of the tax authorities; and reevaluating the risk of detection strategies.
Details
Keywords
Aries Susanty, Nia Budi Puspitasari and Adam Fachreza
This study aims to create a system dynamics simulation model to forecast the performance of small and medium-sized enterprises (SMEs) if some decision-making is executed to reduce…
Abstract
Purpose
This study aims to create a system dynamics simulation model to forecast the performance of small and medium-sized enterprises (SMEs) if some decision-making is executed to reduce the negative of the coronavirus disease 2019 (COVID-19) pandemic. In particular, this study will focus on SMEs that belong to the furniture industry because the furniture industry is one of the leading industries in Indonesia.
Design/methodology/approach
The study develops a system dynamics-based model by using three subsystems, i.e. the “production subsystem,” “demand and revenue subsystem” and “raw material (or wood supply) subsystem.”
Findings
The best scenario is the third scenario which increases the capacity to the normal situation and government subsidy during and after the pandemic. This scenario gives the best performance for industry revenue and gross domestic product (GDP). However, for the government, the most significant expenditure occurs in the third scenario. This seems a trade-off for the government whether to save the wooden-based furniture industry by encouraging the industry to continue operating during the pandemic accompanied by high subsidies or limiting the activities of the wooden-based furniture industry to prevent the spread of COVID-19 by providing low subsidies.
Research limitations/implications
First, this study does not try to combine the system dynamics (SD) methodology with the other method or use a multi-methodology since SD has several limitations and the other method may have several advantages compared to SD. Second, the models used in this study do not consider the decline in forest area and quality. Third, the demand for wooden-based furniture is obtained from historical data on domestic and foreign sales and fourth, the model does not include the government budget as a constraint to make any subsidy to help the SMEs.
Practical implications
This study provides essential insights into implementing the policies in the world pandemic situation when SMEs face lockdown policy.
Social implications
The study revealed that relevant policy scenarios could be built after simulating and analyzing each scenario's effect on SMEs' performance during the pandemic.
Originality/value
This study will enrich the previous study on the impact of the pandemic on SMEs and the dynamic system modeling on SMEs. The previous study discussed the pandemic's impact on SME performance and the impact's analysis in isolation from the dynamic nature of SME owners' decisions or government policy. In this study, the impact generated from the pandemic situation could be different depending on the decision and policies taken by managers from SMEs and the government.
Details
Keywords
Julius Juma Okello, Wellington Jogo, Norman Kwikiriza and Penina Muoki
The sustainability of decentralized seed producers established to enhance farmers’ access to seed of newly introduced biofortified crops is a major challenge. Understanding what…
Abstract
Purpose
The sustainability of decentralized seed producers established to enhance farmers’ access to seed of newly introduced biofortified crops is a major challenge. Understanding what motivates the multipliers of clonally propagated crops to engage in seed multiplication is critical for enhancing access to improved seed varieties. The purpose of this paper is to examine the structure and content of mental models associated with the decision to engage in biofortified sweetpotato vine multiplication as a business.
Design/methodology/approach
The study focused on decentralized vine multipliers from Kenya and Ethiopia. These were stratified by orientation toward nutrition or commercial value addition. A total of 45 multipliers were interviewed. Means-end chain (MEC) analysis combined with laddering technique was used to generate mental constructs multipliers relate with the decision to engage in biofortified sweetpotato vine multiplication.
Findings
The structure and content of mental models of biofortified sweetpotato vine multipliers supporting nutrition-focused interventions and those supporting commercial value-addition sweetpotato interventions are different. Nutrition-focused multipliers are driven by the benefits of good health, while commercial value-addition interventions are driven by the benefit of making “more money.” The content and structure of mental models are also country/region specific.
Research limitations/implications
This study has demonstrated that decision to engage in community seed production business is driven not only by the desire to make profits but, equally importantly, by personal and societal (social) factors. It has also discussed the limitations of current analysis and future research areas.
Originality/value
This study is the first to apply MES analysis to assess how decision to invest in seed multiplication business is affected farmers’ personal values and other psychosocial factors.
Details
Keywords
Joko Mariyono, Apri Kuntariningsih, Enny Suswati and Tom Kompas
The purpose of this paper is to measure the environmental performance of intensive farming and estimate agrochemical waste in physical and monetary terms. The intensive farming…
Abstract
Purpose
The purpose of this paper is to measure the environmental performance of intensive farming and estimate agrochemical waste in physical and monetary terms. The intensive farming provides adverse impacts including health and environmental quality associated with the use of agrochemicals.
Design/methodology/approach
This study uses a theory of environmental efficiency that measures how efficient the farm uses agrochemical inputs. The efficiency was estimated using a set of farm-level data of intensive farming that use agrochemicals. Data were compiled from a survey of randomly selected 240 farmers who operated intensive farming in three regions of Java in 2014.
Findings
The results show that the performance of intensive farming was low. This condition caused agrochemical waste leading to the externality. Taking the external costs into account resulted in the improvement in efficiency of agrochemicals. The actual level of agrochemicals was about a hundred times higher than the most efficient level.
Research limitations/implications
This study is beyond the exogenous external costs. There is a need for a further comprehensive study to include more exogenous external costs associated with agrochemicals to have the potential value of such costs and the most socially efficient use of agrochemicals. The long-term effects of external cost to the environment and socio-economic livelihood of the farmers and other communities are considerable. Advocating for alternatives to decrease the use of detrimental agro-inputs, in the long run, will provide sound quality of the environment. Socially, both producers and consumers get the environmental and health benefits.
Practical implications
To reduce the agrochemical waste that caused environmental problems, a policy should be formulated to make farming more efficient, particularly for agrochemical use. It can be done by introducing agronomic technologies and enhancing farmers’ knowledge on environmentally friendly agriculture.
Originality/value
Environmental efficiency is able to estimate the quantity of agrochemical waste. The waste is a kind of non-point source pollution whose source and quantity are very difficult to identify and measure. As there are many definitions and measurement of environmental performance, this concept of environmental efficiency can be one of the alternatives.
Details
Keywords
Aries Susanty, Diana Puspita Sari, Dyah Ika Rinawati and Lutfi Setiawan
The purpose of this paper is twofold: first, to investigate the direct effect of internal and external drivers on full implementation of the green supply-chain management (GSCM…
Abstract
Purpose
The purpose of this paper is twofold: first, to investigate the direct effect of internal and external drivers on full implementation of the green supply-chain management (GSCM) practice; and second, to investigate the direct effect of internal drivers and indirect effect of external drivers on the full implementation of the GSCM practice.
Design/methodology/approach
The study is based on the data collected from 30 to 35 furniture small and medium enterprises (SMEs) chosen from each surveyed region. In this case, the selected SMEs should have been conducted some GSCM practices. So, the total number of samples used in this study is 100 SMEs. The relationships between internal and external drivers and the success of the implementation of the GSCM practices are analyzed using structural equation modeling.
Findings
The results of this study have revealed that internal and external drivers, which consist of involvement, technology, financial, regulation and customer pressure, have a direct effect on early adoption of GSCM practices. Among these drivers, technology gives the most significant effect. The results have also shown that only financial factor has a direct effect on the full implementation of GCSCM practices, whereas regulation and customer pressure have positive effect on the full implementation through early adoption of GSCM practices.
Research limitations/implications
Among the limitations of this study is related to the sample that was restricted to SMEs of furniture in three regions. The other limitation could be related to variable involved as internal and external drivers. This study has only used involvement, technology, knowledge, financial, and regulation and customer pressure as the antecedent variables of early adoption of the GSCM practices. Moreover, this study has only used the Likert scale as an approach to measure the implementation of GSCM practice management, which could be the source of bias in expressing the level of the implementation.
Practical implications
From the internal side of enterprises, the top management or the owner of SMEs can develop an effective comprehensive environmental strategy. This strategy requires the top management of SMEs show an environment oriented, allocate a specific person for implementing the GSCM practice and learn about the current technology that can support the environmentally friendly products, and also allocate the specific budget to support the implementation of GSCM practice. Moreover, since the study also found that financial factor was just the only factor having a direct effect on the full implementation of GSCM practices; therefore, the government should help the SMEs of furniture in developing low cost-GSCM implementation techniques and also provide easiness for the SMEs to get the needed fund for implementing the GSCM practice.
Social implications
The research has confirmed that regulation and customer pressure have the positive and significant effect on the full implementation of GSCM practices. It may encourage the government to make some policy related to improvement of the implementation of GSCM practice by SMEs of wooden furniture, specifically in the Central Java Province. Another implication would be to encourage the customer to make purchasing oriented decision for the implementation of GSCM practices by the SMEs of wooden furniture.
Originality/value
This study contributes to the literature of GSCM by combining the critical factors of implementation of GSCM practices toward internal and external drivers and empirically testing the direct and indirect impacts on the level of adoption of GSCM practices.
Details
Keywords
The purpose of this paper is to analyze the impact of microcredit and agronomic technology on farm households’ prosperity, and to determine important factors affecting farmers’…
Abstract
Purpose
The purpose of this paper is to analyze the impact of microcredit and agronomic technology on farm households’ prosperity, and to determine important factors affecting farmers’ access to microcredit and technology adoption in Indonesian intensive farming.
Design/methodology/approach
The focus of the study was farmers engaging with chili-based agribusiness in rural areas. Data for this study were compiled from a survey that interviewed 250 farm households. Samples of the study were randomly selected from chili farming community in three regions of Java during 2013–2014. Data were analyzed using structural equation modeling (SEM).
Findings
Microcredit provided positive direct and indirect impacts on household prosperity. Microcredit indirectly impacted the well-being through the mediation of technology adoption. Farmers’ characteristics and agribusiness environment determined farmers’ decision to access microcredit and adopt advanced technology. Microcredit and technology have enhanced farmers’ well-being through pathways that enabled farmers to develop farming scale.
Practical implications
The government should offer more alternatives to advanced technology and flexible procedures of access to credit at the same time to ensure sustained pathways of rural economic growth in Indonesia.
Originality/value
This paper applied a SEM to a proposition of simultaneous causal interrelations among microcredit, technology and farmers’ prosperity.
Details