Do online agri-food sellers contribute to food security in Indonesia? A PCA-based composite index and a Tobit approach

Abstract

Despite a widely accepted view of the increasing role of e-commerce in providing food access, conceptual frameworks, measures, and factors affecting the contribution of e-commerce participants to food security still need to be improved. This study develops a conceptual framework using data from an online survey of 198 online agri-food sellers in the East Java province recruited through a local small business platform. Then, it conducts a quantitative analysis to assess the contribution of online agri-food sellers to food security and the factors affecting their contribution. Specifically, the study develops a novel principal component analysis-based E-Commerce Food Security Contribution Index (EFSCI) using 26 food availability, access, utilisation, and stability indicators. It applies a Tobit model to identify factors affecting the EFSCI. This is the first study to associate food security issues with e-commerce selling behaviours of small online businesses using empirical data and a newly constructed index. The Tobit model reveals that sellers with more experience in e-commerce and selling processed meat contribute more to food security. To a lesser extent, being a male seller and marketing on social media are negatively associated with the EFSCI. The results highlights the necessity to support new entrants and those selling on social media to better understand food security aspects in their e-commerce operations, the importance of food safety, and the significant role of women in promoting food security.