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Improvement of economic and sustainability performance of agribusiness management using ecological technologies in Indonesia

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  • Joko Mariyono

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.

Suggested Citation

  • Joko Mariyono, 2019. "Improvement of economic and sustainability performance of agribusiness management using ecological technologies in Indonesia," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 69(5), pages 989-1008, October.
    • Handle: RePEc:eme:ijppmp:ijppm-01-2019-0036
    DOI: 10.1108/IJPPM-01-2019-0036
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    Citations

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    Cited by:

    1. Bosiljka Srebro & Bojan Mavrenski & Vesna Bogojević Arsić & Snežana Knežević & Marko Milašinović & Jovan Travica, 2021. "Bankruptcy Risk Prediction in Ensuring the Sustainable Operation of Agriculture Companies," Sustainability, MDPI, vol. 13(14), pages 1-17, July.
    2. Noxolo Kunene & Yessica C.Y. Chung, 2020. "Sustainable Production Policy Impact on Palm Oil Firms’ Performance: Empirical Analysis from Indonesia," Sustainability, MDPI, vol. 12(20), pages 1-17, October.

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