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Value Chain Approaches in a Stagnant Industry: The Case of Furniture Production in Jepara, Indonesia

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  • Corinna Clements
  • Jeffrey Alwang
  • Ramadhani Achdiawan

Abstract

This article assesses impacts of the Jepara Furniture Value Chain (FVC) project, which was intended to address challenges faced by small-scale furniture producers in Jepara, Indonesia. The assessment focuses on the effects of membership in the Jepara Small-Scale Furniture Producers Association (APKJ), a body started as part of the FVC project. Propensity score matching was used to compare differences in outcome variables between association members and matched non-members. A limited, positive impact of APKJ membership was found. Members improved their marketing, allowing them to retain more value than non-members. APKJ members were also more likely to have obtained certificates of timber legality. However, APKJ membership did not significantly affect firm profit and there was little evidence of an industry transformation. The paper also critiques the indiscriminate use of a value chain approach.

Suggested Citation

  • Corinna Clements & Jeffrey Alwang & Ramadhani Achdiawan, 2019. "Value Chain Approaches in a Stagnant Industry: The Case of Furniture Production in Jepara, Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 55(3), pages 341-365, September.
    • Handle: RePEc:taf:bindes:v:55:y:2019:i:3:p:341-365
    DOI: 10.1080/00074918.2019.1576855
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    Cited by:

    1. Massie, Natanael Waraney Gerald & Mangunsong, Carlos, 2022. "Products as Network: An Empirical Approximation of the Manufacturing Production Network in Indonesia," MPRA Paper 114647, University Library of Munich, Germany.
    2. Jeffrey Yi-Lin Forrest & Zaiwu Gong & Edward Scott & Gerardo Eloy Soto Ruiz, 2020. "Market-Sensing Capabilities, Profitability Within Stagnant Industries And Crafting Of Customer Value Propositions," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 26, pages 53-76, December.

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