IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i17p7020-d405412.html
   My bibliography  Save this article

Business Models and Innovation in the Indonesian Smallholder Beef Value Chain

Author

Listed:
  • Zenal Asikin

    (UNE Business School, University of New England, Armidale, NSW 2351, Australia
    School of Business, IPB University (Bogor Agricultural University), Bogor 16151, Indonesia)

  • Derek Baker

    (UNE Business School, University of New England, Armidale, NSW 2351, Australia)

  • Renato Villano

    (UNE Business School, University of New England, Armidale, NSW 2351, Australia)

  • Arief Daryanto

    (School of Business, IPB University (Bogor Agricultural University), Bogor 16151, Indonesia)

Abstract

This paper proposes a framework for identification of business models in smallholder cattle production and marketing that represents innovation behaviour. Cattle are vital to Indonesia’s smallholders’ livelihoods, and smallholder systems are key to serving the country’s growing demand for beef. Business incentives currently select against the development and sustainability of breeding systems which would support domestic production, and so new models are needed which utilize innovation. The three primary components of a business model are presented: its value proposition, its value architecture, and its financing mechanism. A research approach is provided, by way of mapping data needs to the business models, and proposing relationships between observed innovation practices and the business models within the value chain. For implementation, the paper provides guidance on facilitation needs and the role of stakeholders in the case of the Indonesian cattle and beef value chain.

Suggested Citation

  • Zenal Asikin & Derek Baker & Renato Villano & Arief Daryanto, 2020. "Business Models and Innovation in the Indonesian Smallholder Beef Value Chain," Sustainability, MDPI, vol. 12(17), pages 1-13, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:7020-:d:405412
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/17/7020/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/17/7020/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Setianto, N.A. & Cameron, D.C. & Gaughan, J.B., 2014. "Structuring the problematic situation of smallholder beef farming in Central Java Indonesia: using systems thinking as an entry point to taming complexity," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(3), pages 1-11.
    2. Vighneswara Swamy & Dharani M, 2016. "Analyzing the agricultural value chain financing: approaches and tools in India," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(2), pages 211-232, July.
    3. Griffith, Garry & Baker, Derek & Fleming, Euan & Mounter, Stuart & Malcolm, Bill & Umberger, Wendy, . "146 Chain Failure and Chain Goods: Re-thinking Value Chain Upgrading and Promotion in Developing Countries," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 8(2).
    4. Saeed Nosratabadi & Amir Mosavi & Shahaboddin Shamshirband & Edmundas Kazimieras Zavadskas & Andry Rakotonirainy & Kwok Wing Chau, 2019. "Sustainable Business Models: A Review," Sustainability, MDPI, vol. 11(6), pages 1-30, March.
    5. Seife Ayele & Alan Duncan & Asamoah Larbi & Truong Tan Khanh, 2012. "Enhancing innovation in livestock value chains through networks: Lessons from fodder innovation case studies in developing countries," Science and Public Policy, Oxford University Press, vol. 39(3), pages 333-346, April.
    6. Rich, Karl M. & Ross, R. Brent & Baker, A. Derek & Negassa, Asfaw, 2011. "Quantifying value chain analysis in the context of livestock systems in developing countries," Food Policy, Elsevier, vol. 36(2), pages 214-222, April.
    7. Priyanti, Atien & Hanifah, Vyta W. & Mahendri, I.G.A.P. & Cahyadi, F. & Cramb, Rob A., 2012. "Small-Scale Beef Cattle Production in East Java, Indonesia," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124411, Australian Agricultural and Resource Economics Society.
    8. Richard Bellman & Charles E. Clark & Donald G. Malcolm & Clifford J. Craft & Franc M. Ricciardi, 1957. "On the Construction of a Multi-Stage, Multi-Person Business Game," Operations Research, INFORMS, vol. 5(4), pages 469-503, August.
    9. Rosa Caiazza, 2014. "Factors affecting spin-off creation," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 8(2), pages 103-110, May.
    10. Sufang Zhang, . "Innovative Business Models and Financing Mechanisms for Distributed Solar Photovoltaic (DSPV) Deployment in China," Chapters, in: Shigeru Kimura & Youngho Chang & Yanfei Li (ed.), Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments, chapter 6, pages 161-191, Economic Research Institute for ASEAN and East Asia (ERIA).
    11. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
    12. Kevin Z Chen & Pramod K Joshi & Enjiang Cheng & Pratap S Birthal, 2015. "Innovations in financing of agri-food value chains in China and India," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 7(4), pages 616-640, November.
    13. Zhang, Sufang, 2016. "Innovative business models and financing mechanisms for distributed solar PV (DSPV) deployment in China," Energy Policy, Elsevier, vol. 95(C), pages 458-467.
    14. Rosa Caiazza & Tiziana Volpe, 2014. "Main rules and actors of Italian system of innovation: how to become competitive in spin-off activity," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 8(3), pages 188-197, August.
    15. Joakim Tell & Maya Hoveskog & Pia Ulvenblad & Per-Ola Ulvenblad & Henrik Barth & Jenny Ståhl, 2016. "Business Model Innovation in the Agri-food Sector," International Journal of Social Ecology and Sustainable Development (IJSESD), IGI Global Scientific Publishing, vol. 7(2), pages 1-13, April.
    16. Lisson, Shaun & MacLeod, Neil & McDonald, Cam & Corfield, Jeff & Pengelly, Bruce & Wirajaswadi, Lalu & Rahman, Rahmat & Bahar, Syamsu & Padjung, Rusnadi & Razak, Nasruddin & Puspadi, Ketut & Dahlanudd, 2010. "A participatory, farming systems approach to improving Bali cattle production in the smallholder crop-livestock systems of Eastern Indonesia," Agricultural Systems, Elsevier, vol. 103(7), pages 486-497, September.
    17. Patrick Spieth & Sabrina Schneider, 2016. "Business model innovativeness: designing a formative measure for business model innovation," Journal of Business Economics, Springer, vol. 86(6), pages 671-696, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:ers:journl:v:xxiv:y:2021:i:special3:p:521-535 is not listed on IDEAS
    2. Mashur Mashur & Muhammad Roil Bilad & Kholik Kholik & Muhammad Munawaroh & Quentin Cheok & Nurul Huda & Rovina Kobun, 2022. "The Sustainability and Development Strategy of a Cattle Feed Bank: A Case Study," Sustainability, MDPI, vol. 14(13), pages 1-14, June.
    3. Bob Doherty & Pichawadee Kittipanya-Ngam, 2021. "The Role of Social Enterprise Hybrid Business Models in Inclusive Value Chain Development," Sustainability, MDPI, vol. 13(2), pages 1-24, January.
    4. Nanang Dwi Wahyono & Niswatin Hasanah & Rita Parmawati & Wing-Keung Wong, 2023. "Improving Economic Welfare through Capital Development: Case Study of Smallholder Dairy Farmers in Pujon District," Sustainability, MDPI, vol. 15(11), pages 1-13, May.
    5. Valerio, Erika & Hilmiati, Nurul & Prior, Julian & Dahlanuddin, Dahlan, 2022. "Analysis of the agricultural innovation system in Indonesia: A case study of the beef sector in Nusa Tenggara Barat," Agricultural Systems, Elsevier, vol. 203(C).
    6. Adam Wisniewski, 2021. "The Link Between Business Relations and Success of an Organization: A Research Study," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 521-535.

    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. Luigi Fusco Girard & Marilena Vecco, 2021. "The “Intrinsic Value” of Cultural Heritage as Driver for Circular Human-Centered Adaptive Reuse," Sustainability, MDPI, vol. 13(6), pages 1-28, March.
    2. Xuerong Li & Han Qiao & Shouyang Wang, 2017. "Exploring evolution and emerging trends in business model study: a co-citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 869-887, May.
    3. Kejia Yang & Johan Schot & Bernhard Truffer, 2020. "Shaping the Directionality of Sustainability Transitions: The Diverging Development Patterns of Solar PV in Two Chinese Provinces," SPRU Working Paper Series 2020-14, SPRU - Science Policy Research Unit, University of Sussex Business School.
    4. Xiang Cai & Meiying Xie & Haijing Zhang & Zhenli Xu & Faxin Cheng, 2019. "Business Models of Distributed Solar Photovoltaic Power of China: The Business Model Canvas Perspective," Sustainability, MDPI, vol. 11(16), pages 1-27, August.
    5. Han, Xiaojuan & Zhang, Hua & Yu, Xiaoling & Wang, Lina, 2016. "Economic evaluation of grid-connected micro-grid system with photovoltaic and energy storage under different investment and financing models," Applied Energy, Elsevier, vol. 184(C), pages 103-118.
    6. Arash Rezazadeh & Ana Carvalho, 2018. "A value-based approach to business model innovation: Defining the elements of the concept," NIPE Working Papers 12/2018, NIPE - Universidade do Minho.
    7. Xu, Xinkuo & Guan, Chengmei & Jin, Jiayu, 2018. "Valuing the carbon assets of distributed photovoltaic generation in China," Energy Policy, Elsevier, vol. 121(C), pages 374-382.
    8. Di Vaio, Assunta & Palladino, Rosa & Hassan, Rohail & Escobar, Octavio, 2020. "Artificial intelligence and business models in the sustainable development goals perspective: A systematic literature review," Journal of Business Research, Elsevier, vol. 121(C), pages 283-314.
    9. Monia Castellini & Nicola Valentini, 2019. "Business Models for the Creative Industries: a literature review," Working Papers 2019088, University of Ferrara, Department of Economics.
    10. M. Moore, 2021. "Collaboration in Coworking Spaces: Impact on Firm Innovativeness and Business Models," Papers 2111.09866, arXiv.org.
    11. Ales Novak, 2014. "Business Model Literature Overview," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(1), pages 79-130.
    12. Xu, Li & Zhang, Qin & Wang, Keying & Shi, Xunpeng, 2020. "Subsidies, loans, and companies' performance: evidence from China's photovoltaic industry," Applied Energy, Elsevier, vol. 260(C).
    13. Villalba, Roberto & Venus, Terese E. & Sauer, Johannes, 2023. "The ecosystem approach to agricultural value chain finance: A framework for rural credit," World Development, Elsevier, vol. 164(C).
    14. Stefan Groesser & Niklas Jovy, 2016. "Business model analysis using computational modeling: a strategy tool for exploration and decision-making," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 61-88, February.
    15. Globocnik, Dietfried & Faullant, Rita & Parastuty, Zulaicha, 2020. "Bridging strategic planning and business model management – A formal control framework to manage business model portfolios and dynamics," European Management Journal, Elsevier, vol. 38(2), pages 231-243.
    16. Vittori, Davide & Natalicchio, Angelo & Panniello, Umberto & Messeni Petruzzelli, Antonio & Cupertino, Francesco, 2022. "Business Model Innovation between the embryonic and growth stages of industry lifecycle," Technovation, Elsevier, vol. 117(C).
    17. Li, Changsheng & Shen, Bo, 2019. "Accelerating renewable energy electrification and rural economic development with an innovative business model: A case study in China," Energy Policy, Elsevier, vol. 127(C), pages 280-286.
    18. Costa Climent, Ricardo & Haftor, Darek M., 2021. "Value creation through the evolution of business model themes," Journal of Business Research, Elsevier, vol. 122(C), pages 353-361.
    19. Sabina Scarpellini & José Ángel Gimeno & Pilar Portillo-Tarragona & Eva Llera-Sastresa, 2021. "Financial Resources for the Investments in Renewable Self-Consumption in a Circular Economy Framework," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    20. Hongyu Wang & Xiaolei Wang & Apurbo Sarkar & Lu Qian, 2021. "Evaluating the Impacts of Smallholder Farmer’s Participation in Modern Agricultural Value Chain Tactics for Facilitating Poverty Alleviation—A Case Study of Kiwifruit Industry in Shaanxi, China," Agriculture, MDPI, vol. 11(5), pages 1-19, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:12:y:2020:i:17:p:7020-:d:405412. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.