Towards a sustainable coffee supply chain: the role of digital platform capability in increasing organisational agility

Abstract

ABSTRACT The increasing demand for coffee in Indonesia and abroad, accompanied by value creation from applying sustainability principles for coffee brands or outlets, leads to potential opportunities for coffee product entrepreneurs. Through the development of an online platform that entrepreneurs can directly access to eliminate links in the supply chain, coffee entrepreneurs have the opportunity to compete through national and international markets. Therefore, this study examined the effectiveness of digital platform applications in increasing the supply chain competitiveness of agricultural micro, small, and medium enterprises (MSME) products in Indonesia, especially coffee products. The conceptual model in this study examines the relationship between digital platform capability and organisational agility, specifically addressing when and how digital platform can help MSME exporters increase their organisation’s agility. This research uses theory of capability dynamism and the partial least squares structural equation modelling (PLS-SEM) method to test the proposed model and estimate the relationship between constructs. Consequently, this research develops strategies for the supply chain stakeholders using the why-how-laddering method for managerial implications. The study’s findings show that organisational agility can be supported by improving digital platform capability, and nine strategic recommendations can be applied to increase coffee exporters’ digital platform capability and organisational agility, respectively.