Growth of Banana-Based Agribusiness in Indonesia

Authors

  • Haryono Haryono Universitas Bhayangkara Surabaya

DOI:

https://doi.org/10.58812/wsis.v2i11.1445

Keywords:

Agribusiness Growth, Market Access, Product Innovation, Entrepreneurial Experience, Banana-Based Businesses

Abstract

This study examines the effects of market access, product innovation, and entrepreneurial experience on the growth of banana-based agribusinesses in Indonesia. Given the sector's significant potential in rural economic development, understanding the factors that drive agribusiness growth is essential. Using a quantitative approach, data were collected from 120 banana-based agribusinesses across various regions in Indonesia, with respondents rating each variable on a Likert scale of 1 to 5. Analysis was conducted using SPSS version 26, applying multiple regression to assess the significance and strength of each variable’s impact on business growth. Results indicate that market access, product innovation, and entrepreneurial experience each positively influence agribusiness growth, with product innovation emerging as the most significant predictor. These findings underscore the importance of market accessibility, continuous product innovation, and experienced entrepreneurship as key drivers of success in the agribusiness sector. This study provides actionable insights for policymakers and practitioners to enhance agribusiness performance through targeted support for market infrastructure, innovation, and entrepreneurial development.

References

T. Sudaryono, S. S. Antarlina, and D. Setyorini, “Banana: Benefits, Cultivation, Post-Harvest and Processed, in Indonesia.” BP International, 2023.

V. G. Agusty, D. T. Shipya, and M. Mariyono, “Diversifikasi Produk Olahan Berbasis Pisang Untuk Meningkatkan Perekonomian Masyarakat di Kelurahan Sumberjo Kecamatan Wonosari Kabupaten Jombang,” JATIMAS J. Pertan. dan Pengabdi. Masy., vol. 2, no. 2, pp. 97–103, 2022.

A. Rosyana, G. Gata, Y. Santoso, and A. U. Hamdani, “Penerapan E-Commerce Untuk Memperluas Pemasaran Pada Toko Shafira,” in Prosiding Seminar Nasional Mahasiswa Fakultas Teknologi Informasi (SENAFTI), 2023, pp. 899–907.

F. El-Faradis, “COMMUNITY ENTREPRENEURSHIP SKILL THROUGH BANANA AND CHILI PRODUCT TO IMPROVE THE ECONOMY OF RURAL COMMUNITIES,” ABDINA J. Sos. Dan Pengabdi. Kpd. Masy., vol. 1, no. 2, 2022.

P. Wongpit, B. Inthakesone, K. Sisengnam, and P. Syphoxay, “Investigating the Role of the Cultivated Banana Value Chain as a Potential Source of Sustainable Income for Local Communities in Lao PDR,” Res. World Agric. Econ., vol. 4, no. 3, pp. 25–35, 2023.

G. H. M. Kavinda, D. D. Dissanayake, K. Nanayakkara, N. H. P. R. S. Swrnakantha, M. N. V. K. Liyanagolla, and P. K. S. Kumari, “Musa Base-Mobile Application for Banana Farmers to Minimize the Challenges in Banana Production during the Pre-Harvest and Post-Harvest Period,” in 2023 International Conference on Innovative Computing, Intelligent Communication and Smart Electrical Systems (ICSES), IEEE, 2023, pp. 1–7.

S. W. Mbuthia, C. Kayi, and S. K. Wambugu, “Constraints to profitable participation in agri-food value chains: A case of small-scale banana farmers in Meru County, Kenya,” Int. J. Sci. Res. Publ., vol. 8, no. 7, pp. 66–75, 2018.

I. D. O. Chilokwu, C. J. C. Akubuilo, and K. A. A. Lawal, “BANANA VALUE CREATION THROUGH ENTREPRENURESHIP: IMPLICATIONS FOR INDUSTRIAL GROWTH IN AFRICA,” Unizik J. Bus., vol. 1, pp. 15–25, 2018.

G. K. Kampungu, E. Nekayi, D. N. Nakandjibi, and G. M. Mulonda, “Running Head: Factors Affecting Market Access for Horticultural Farmers,” Int. J. Res. Innov. Soc. Sci., vol. 8, no. 4, pp. 1557–1569, 2024.

G. LA CRUZ, “The contribution of Fair Trade towards market access by smallholder banana producers,” in The Agro-Food Chains and Networks for Development, Springer, 2006, pp. 69–78.

C. J. M. Tukan, J. M. Roshetko, S. Budidarsono, and G. S. Manurung, “Banana Market Chain Improvement–Enhance Farmers’ Market Linkages in West Java, Indonesia,” Acta Hortic., vol. 699, p. 699, 2005.

F. Cheriet, K. Messeghem, V. Lagarde, and G. McElwee, “Agricultural entrepreneurship: Challenges and perspectives,” Rev. l’Entrepreneuriat, no. 4, pp. 13–29, 2020.

N. Zamani and M. Mohammadi, “Entrepreneurial learning as experienced by agricultural graduate entrepreneurs,” High. Educ., vol. 76, pp. 301–316, 2018.

I. A. Stephen, O. M. Ayodele, and O. A. Oluremi, “Enhancing the performance of agro-based SMES: The role of entrepreneurship competencies,” Covenant J. Entrep., 2017.

X. Yang, “Working experience, Social capital and the performance of farmers’ first startup,” in 2018 International Conference on Management and Education, Humanities and Social Sciences (MEHSS 2018), Atlantis Press, 2018, pp. 325–328.

S. Rudenko, A. Riasnianska, and O. Semenov, “Product, production, and management innovations in the system of developing the economic potential of agricultural enterprises,” Ukr. J. Appl. Econ. Technol., vol. 8, pp. 213–217, Feb. 2023, doi: 10.36887/2415-8453-2023-1-31.

J. C. Brancheau and J. C. Wetherbe, “Key issues in information systems management,” MIS Q., pp. 23–45, 1987.

P. Braunerhjelm0F and E. Lappi1F, “How Entrepreneurial Experiences Foster Crises Resilience-Survival and Performance of New Ventures and Incumbents,” in DRUID22 Conference, 2022.

D. Zhou and L. Li, “Farming experience, personal characteristics, and entrepreneurial decisions of urban residents: Empirical evidence from China,” Front. Psychol., vol. 13, p. 859936, 2022.

J. Veni, “Role of Startups in Entrepreneurship Development (Agri Based Sector),” Management, vol. 11, no. S1, pp. 94–99, 2023.

I. Ghozali, “Multivariate Analysis Application with the IBM SPSS 25 Program. Semarang,” Semarang Diponegoro Univ. Publ. Agency, 2018.

W. Ma, T. Sonobe, and B. Gong, “Linking farmers to markets: Barriers, solutions, and policy options,” Econ. Anal. Policy, vol. 82, pp. 1102–1112, 2024.

P. Marion et al., “The effects of agricultural output market access interventions on agricultural, socio‐economic, food security, and nutrition outcomes in low‐and middle‐income countries: A systematic review,” Campbell Syst. Rev., vol. 20, no. 2, p. e1411, 2024.

A. M. Gau and N. Saleh, “Exploring e-Commerce Potential: Improving Sales Performance Through Product Innovation in The Agriculture Sector,” J. Econ. Resour., vol. 7, no. 1, pp. 47–56, 2024.

M. N. Velasco, G. V. Dela Cueva, J. M. D. Lajara, N. B. S. Mercado, J. L. V Pablo, and M. B. D. Precilla, “Bridging the Agricultural Divide: Implementing an E-commerce Platform for Enhanced Agricultural Product Marketing and Consumer Access,” in 2024 7th International Conference on Informatics and Computational Sciences (ICICoS), IEEE, 2024, pp. 149–154.

K. N. Nwangwu, C. S. Onyenekwe, P. I. Opata, C. O. Ume, and N. N. C. Ume, “Can digital technology promote market participation among smallholder farmers?,” Int. Food Agribus. Manag. Rev., vol. 27, no. 4, pp. 706–728, 2024.

I. N. Nyamao and J. Tari, “Product Innovation and the Performance of Financial Technology Companies in Kenya,” Eur. J. Bus. Manag. Res., vol. 8, no. 5, pp. 240–245, 2023.

I. Khasanah and I. M. Sukresna, “THE ROLES OF PRODUCT INNOVATION CAPABILITY IN MARKETING PERFORMANCE,” J. Dev. Entrep., vol. 28, no. 03, p. 2350021, 2023.

T. T. Saraswati and S. Sudarmiatin, “The Role Product Innovation on Business Performance Thought Competitive advantage as Mediation Variable,” Int. J. Business, Law, Educ., vol. 5, no. 2, pp. 1581–1592, 2024.

N. D. Yanuar and H. Harti, “Pengaruh Inovasi Produk Dan Orientasi Pasar Terhadap Kinerja Penjualan Pada Home Industri Olahan Ikan Di Kabupaten Trenggalek,” J. Manaj. Pemasar., vol. 14, no. 2, pp. 51–60, 2020.

R. M. Mrosso, E. L. Genda, and N. B. Tutuba, “Effects of Product Innovation on the Performance of Women-led Micro and Small Enterprises in the Food Processing Industry, Tanzania.,” UONGOZI J. Manag. Dev. Dyn., vol. 32, no. 1, pp. 41–63, 2022.

J. Kansikas and P. Tarasanski, “The Experiential Perceptions of Entrepreneurial Competencies: Avenues for the Next-Generation Entrepreneurship Education,” Prog. Entrep. Educ. Train., p. 243, 2023.

Downloads

Published

2024-11-29

How to Cite

Haryono, H. (2024). Growth of Banana-Based Agribusiness in Indonesia. West Science Interdisciplinary Studies, 2(11), 2135–2146. https://doi.org/10.58812/wsis.v2i11.1445

Issue

Vol. 2 No. 11 (2024): West Science Interdisciplinary Studies

Section

Articles

License

Copyright (c) 2024 Haryono Haryono

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.