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

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.