IDEAS home Printed from https://ideas.repec.org/a/eco/journ3/2019-01-9.html
   My bibliography  Save this article

Risk Management of the Joint Partnership Pattern: Case Study of Shrimp Farming in Indonesia

Author

Listed:
  • M. Yusuf S. Barusman

    (Department of Economics and Business, University of Bandar Lampung, Lampung, Indonesia)

  • Indriati Agustina Gultom

    (Department of Economics and Business, University of Bandar Lampung, Lampung, Indonesia)

  • Appin Purisky Redaputri

    (Department of Economics and Business, University of Bandar Lampung, Lampung, Indonesia)

Abstract

Risk management in farming business is an important point in dealing with various business problems, especially crop failure. This paper focuses on risk management strategy, institutional model and analysis of the partnership pattern of shrimp farming business. Using the case study methodology, the data collected through literature study, field observation, in-depth interview and focus group discussion (FGD) with resource persons acting as representatives of the parties involved in Bumi Dipasena. The management of vaname shrimp farming business in Bumi Dipasena uses a Joint Business Partnership Pattern. This Joint Business Partnership Pattern is a form of business management innovation with its own institutional model. Several unique features of the Joint Business Partnership Pattern are currently being implemented, namely, the existence of a profit-sharing pattern, the concept of business risk reserve and the concept of 1,000 rupiah and emergency debt. These three processes are business risk management strategies.

Suggested Citation

  • M. Yusuf S. Barusman & Indriati Agustina Gultom & Appin Purisky Redaputri, 2019. "Risk Management of the Joint Partnership Pattern: Case Study of Shrimp Farming in Indonesia," International Review of Management and Marketing, Econjournals, vol. 9(1), pages 72-78.
    • Handle: RePEc:eco:journ3:2019-01-9
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/irmm/article/download/7390/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/irmm/article/view/7390/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Harwood, Joy L. & Heifner, Richard G. & Coble, Keith H. & Perry, Janet E. & Somwaru, Agapi, 1999. "Managing Risk in Farming: Concepts, Research, and Analysis," Agricultural Economic Reports 34081, United States Department of Agriculture, Economic Research Service.
    2. Erastus Karanja & Mark A. Rosso, 2017. "The Chief Risk Officer: a study of roles and responsibilities," Risk Management, Palgrave Macmillan, vol. 19(2), pages 103-130, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Firdu Gemech & Sushil Mohan & Alan Reeves & John Struthers, 2011. "Market-Based Price-Risk Management: Welfare Gains for Coffee Producers from Efficient Allocation of Resources," Oxford Development Studies, Taylor & Francis Journals, vol. 39(1), pages 49-68.
    2. Brent A. Gloy & Timothy G. Baker, 2002. "The Importance of Financial Leverage and Risk Aversion in Risk-Management Strategy Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1130-1143.
    3. Deane, Paul & Malcolm, Bill, 2006. "Do Australian woolgrowers manage price risk rationally?," AFBM Journal, Australasian Farm Business Management Network, vol. 3(2), pages 1-7.
    4. Kim, Tae-Hun, 2008. "The measurement of farmers' risk attitudes using a non-structural approach," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 31(2), pages 1-18, May.
    5. Ashok Mishra & Barry Goodwin, 2006. "Revenue insurance purchase decisions of farmers," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 149-159.
    6. Thorne, Fiona S. & Hennessy, Thia C., 2006. "The Role of Risk in the Decision to Produce Post-Decoupling - A Stochastic Budgeting Example," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25415, International Association of Agricultural Economists.
    7. Bitsch, Vera & Harsh, Stephen B., 2004. "Labor Risk Attributes in the Green Industry: Business Owners' and Managers' Perspectives," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(3), pages 731-745, December.
    8. Acs, Szvetlana & Berentsen, Paul B.M. & Huirne, Ruud & van Asseldonk, Marcel, 2009. "Effect of yield and price risk on conversion from conventional to organic farming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 1-19.
    9. Barham, E. Hart Bise & Robinson, John R.C. & Richardson, James W. & Rister, M. Edward, 2011. "Mitigating Cotton Revenue Risk Through Irrigation, Insurance, and Hedging," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(4), pages 529-540, November.
    10. Aymeric Ricome & Arnaud Reynaud, 2022. "Marketing contract choices in agriculture: The role of price expectation and price risk management," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 170-186, January.
    11. El Benni, Nadja & Finger, Robert, 2014. "Where is the risk? Price, yield and cost risk in Swiss crop production," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 95(3).
    12. Dilshad Ahmad & Muhammad Afzal & Abdur Rauf, 2019. "Analysis of wheat farmers’ risk perceptions and attitudes: evidence from Punjab, Pakistan," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 95(3), pages 845-861, February.
    13. Asci, Serhat & VanSickle, John J. & Cantliffe, Daniel J., 2014. "Risk in Investment Decision Making and Greenhouse Tomato Production Expansion in Florida," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(4), pages 1-26, November.
    14. Olarinde, Luke O. & Manyong, Victor M. & Akintola, J.O., 2010. "Economic Perspectives of the Diversity of Risks among Crop Farmers in the Northern Guinea Savanna of Nigeria," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96821, African Association of Agricultural Economists (AAAE).
    15. Lewis T. Cunningham & B. Wade Brorsen & Kim B. Anderson & Emílio Tostão, 2008. "Gender differences in marketing styles," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 1-7, January.
    16. Vedenov, Dmitry V. & Power, Gabriel J., 2008. "Risk-Reducing Effectiveness of Revenue versus Yield Insurance in the Presence of Government Payments," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(2), pages 443-459, August.
    17. Gollin, Douglas, 2006. "Impacts of International Research on Intertemporal Yield Stability in Wheat and Maize: An Economic Assessment," Impact Studies 7657, CIMMYT: International Maize and Wheat Improvement Center.
    18. Raza Ullah & Ganesh P. Shivakoti & Farhad Zulfiqar & Muhammad Nadeem Iqbal & Ashfaq Ahmad Shah, 2017. "Disaster risk management in agriculture: tragedies of the smallholders," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 87(3), pages 1361-1375, July.
    19. Ramirez, Octavio A. & Carpio, Carlos E., 2015. "Are the Federal Crop Insurance Subsidies Equitably Distributed? Evidence from a Monte Carlo Simulation Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(3), pages 1-19, September.
    20. Breen, Benjamin & Hennessy, Thia & Donnellan, Trevor & Hanrahan, Kevin, 2013. "Tools and polices for agricultural risk management," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158686, Agricultural Economics Society.

    More about this item

    Keywords

    Risk Management Strategy; Institutional Model; Partnership Pattern; Business Management Innovation;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ3:2019-01-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.