Downstream Business Research Articles

Prospective Analysis of Seaweed Processing Downstream Business: A Case Study in Lontar Village

Prospective Analysis of Seaweed Processing Downstream Business: A Case Study in Lontar Village

Success Metrics of the Ridho Illahi Breeders' Cooperative in Enhancing Welfare in Wanasaba

This study aims to examine the factors that determine the success of breeder cooperatives, particularly in enhancing business competitiveness and the welfare of the breeder community. The research employs a descriptive-qualitative method with Interpretive Structural Modelling (ISM) analysis. Data were collected through interviews and focus group discussions (FGD) with members of the Ridho Illahi Breeders Cooperative in Wanasaba subdistrict, West Nusa Tenggara. The results indicate that several factors contribute to the success of breeder cooperatives, with the technical skills of breeders having the most significant impact. The ISM model highlights that the critical areas of focus for breeder cooperatives should be the operation of upstream and downstream business systems and the marketing strategies for livestock products. The contribution of this research provides valuable insights for breeder cooperative management to enhance business competitiveness. The originality of this study lies in its model used to identify key factors for the success of breeders in improving competitiveness and welfare.

Business model development for installation of rubber floor mats to support productivity in dairy farming

Purpose. Ribbed smoked sheet (RSS) rubber gradually loses its quality as it is stored after production. Rubber floor mats are recommended as a marketable upstream production in the Thailand rubber industry to help add economic value to low-graded RSS. However, limited attention in research has been paid to business development, particularly on practical models focusing on the demand perspectives. This study helped fill the knowledge gap by analysing factors influencing labour production in dairy farming and proposing a business model based on productivity analysis. The aim of the project was to create a practical business model for cattle rubber floor mats made of low-graded RSS rubber used for nourishing and housing management to promote labour productivity in dairy farming. Methodology / approach. The study used mixed-methods research. A theoretical framework was developed concerning rubber floor mats used in dairy farming, which helped improve the nourishing and housing management of dairy cattle and promote labour productivity. This research adopted Osterwalder’s business model canvas to examine the demand and supply elements of dairy cattle floor mats made of low-graded rubber. It also used the knowledge-based entrepreneurship concept to scrutinise knowledge-based business development. A questionnaire survey was used to collect data required for multiple regression analysis of labour productivity using the Ordinary Least Square (OLS) method. It also used semi-structured interviews to scrutinise the subjective experiences of farmers. A focus group discussion was conducted to investigate academics and rubber promotional authorities concerning potential technology and the possibility of transfer of production technology to promote knowledge-based business development. Results. The empirical evidence presented in this paper confirmed that rubber floor mats could help enhance cattle nourishment, dairy housing management and labour productivity. Regional knowledge transfer network was revealed as a driver of knowledge-based development for assisting local upstream rubber farmers in pursuing eco-innovation in rubber production, aligning with the national initiatives of Industry 4.0 and Bio-Circular-Green economy (BCG) concepts. Originality / scientific novelty. The originality of this paper is that it presents the results of an empirical study using mixed methods for the first time aiming at clarifying practical elements of the supply and demand sides’ components of the Osterwalder`s Business Model Canvas for developing a business model delivered as a knowledge-based business model for the production of dairy cattle floor mats made of low-graded RSS rubber to help guide practical downstream rubber business development. The qualitative results, together with the quantitative analysis of labour productivity, are based on the perceptions of local farmers in Thailand regarding the use of rubber floor mats on the farm; previous studies scientifically prove its positive relation to an increase in dairy cattle nourishing, hence the daily productivity. Practical value / implications. The novel business model canvas could promote the practical cattle floor mats business development. University engagement and public support were included as the critical drivers in this knowledge-based business model. The model implementation could help encourage rubber farmers and smallholders in upstream rubber production to move towards downstream business development and become knowledge-based entrepreneurs in value-added rubber floor mats production. It could also guide the agricultural policymakers to benchmark and evaluate their policy targeting innovative knowledge-based business development for rubber extension.

Analisis Yuridis tentang Aktivitas Pembelian Bahan Bakar Minyak (BBM) di SPBU Menggunakan Jeriken untuk Dijual Kembali Ditinjau dari Undang-Undang Nomor 22 Tahun 2001 tentang Minyak dan Gas Bumi

Law Number 22 of 2001 concerning Oil and Gas that oil and gas business activities are divided into two, namely upstream business activities and downstream business activities. The activity of buying and selling fuel oil is usually in retail form which is put in a glass bottle with a liter size that will be sold to buyers who have previously been bought by sellers from gas stations where fuel oil (BBM) is one of the important elements in fulfilling the community's economy. Based on the initial observations of researchers, especially in Kupang City, retail fuel oil sellers cannot be calculated so much and usually, these retail fuel oil sellers sell in front along the road or in ordinary places, vehicles pass by by setting up mini kiosks or workshops. Therefore, researchers formulate the main problems, namely: (1) How is the implementation of legal regulations related to the act of purchasing fuel oil (BBM) at gas stations using jerry cans for resale in terms of Law Number 22 of 2001 concerning Oil and Gas? (2) What are the factors that hinder the police in handling the activity of purchasing fuel oil (BBM) using jerry cans at gas stations in terms of Law Number 22 of 2001 concerning Oil and Gas? This research is a research that uses the Empirical Juridical method. This research is a legal research conducted by researching regulations, primary data, documentation studies. The research aspects studied are Law Number 22 of 2001 concerning Oil and Gas, legal factors, law enforcement factors, facilities and facilities factors, community factors, buying and selling fuel oil, cultural factors. The results of the study found that: (1) Law Number 22 of 2001 concerning Oil and Gas in its implementation has not run well and is less firm against people who abuse fuel oil (BBM); (2) Factors that become obstacles for the police in handling fuel purchase activities are legal factors, law enforcement factors, facilities and facilities factors, community factors and cultural factors.

Design and Modeling of the Corn Production Development Strategy for Sustainable Stabilization of the Food and Feeding Industry

This study aimed to design a development plan for dry shelled corn production and determine the priority scale of the dry shelled corn production development program in Banten Province. The research location is Banten Province. The research used a descriptive analysis method. The data analysis technique used was a process hierarchy. Process hierarchical analysis in this study was divided into four hierarchical levels: evaluating criteria and alternatives, making logical consistency, synthesizing paired matrices, and combining opinions. The population in this study were corn farmers in Banten Province. The sampling technique used is stage cluster random sampling with the Regency area covered by Banten Province as a cluster. The total sample used was 122 corn farmers. The sample was selected from 1388 corn farmers in Banten Province. The findings of the research results, namely, the planning and design of corn development that needs to be prioritized are improving cultivation techniques and the distribution mechanism of corn seeds. The value of the CR (Consistency Ratio) is 0.098 because the value is less than 10%, meaning that the results of this assessment are consistent and can be used as a reference in the field in the development of corn commodities. In the long term, it is hoped that farmers and the industrial world will both develop in a sustainable manner, not only interdependently but also having an impact on strengthening upstream and downstream business links (industrialization). The findings from this research indicate that the development of corn cultivation technology is the most important element for the food and feed industry.

PARTNERSHIP MANAGEMENT AND POTATO COMPETITIVENESS IN BENER MERIAH DISTRICT, ACEH PROVINCE

The research aims to identify supply chain partnerships and analyze potato competitiveness. The research location is in Bener Meriah Regency, Aceh Province. Supply chain partnership management is studied using qualitative and quantitative descriptive approaches. Potato competitiveness was analyzed using the Policy Analysis Matrix (PAM) approach. The research results show that potato farming is quite profitable for farmers and has competitiveness as a superior product. Potato farming partnerships are carried out by farmers at the level of seed procurement and farming costs with a profit-sharing system or general trading pattern through farming capital loans with the condition that farmers must sell potatoes to traders at below-market prices. Potato farming in Bener Meriah Regency has comparative advantages and competitive advantages. It is worthy of development based on the acquisition of PCR and DRCR, both of which have a value of more than one. Potato farming has good prospects for intensive development to increase the competitiveness of potatoes through synergistic partnership programs with downstream business players, considering the high market demand for potatoes and processed potato products.

Research on Oil and Gas Energy Cooperation between China and Central-North Asian Countries under the “One Belt and One Road” Strategy

The “One Belt and One Road” strategy provides a new opportunity for deepening oil and gas energy cooperation between China and Central-North Asian countries. This paper systematically studies the supply and demand characteristics, interdependence and cooperation prospects of oil and gas between them using relevant oil and gas energy data of these countries from 2016 to 2021. The objective of this research is to provide a basis for the overall planning of oil and gas energy cooperation between China and Central-North Asian countries in the future. The results show that the proven reserves of oil and gas in Central-North Asian countries are high; particularly, the proven reserves of natural gas account for 30% of the world. These countries also have high oil and gas self-sufficiency rates. These have laid a material foundation for China to strive for the sustained and stable import of oil and gas energy from Central-North Asian countries. At the same time, there are great imbalances in oil and gas reserves, production, consumption, available exports and their growth rates among Central-North Asian countries, which provide a basis for China and Central-North Asian countries to make strategic decisions on oil and gas energy differential cooperation. China imports 80 × 106 tons of oil and 490 × 108 cubic meters of gas from Central-North Asian countries every year and Chinese dependence on oil and gas imports in this region is 16% and 37%, respectively. The study believes that China has certain potential to increase the import of oil and gas from Central-North Asian countries and has good prospects for oil and gas cooperation. It is proposed that China should give priority to increasing oil and gas exploration and development cooperation with Central-North Asian countries with high oil and gas reserve–production ratios, and should strengthen oil and gas resource trade cooperation with Central-North Asian countries with high oil and gas self-sufficiency rates. At the same time, China should increase investment and cooperation in the midstream and downstream business of the oil industry in major Central-North Asian countries through various financing channels. China should uphold the principle of win–win cooperation to promote the in-depth and steady development of oil and gas energy cooperation between China and Central-North Asian countries.

An explainable forecasting system for humanitarian needs assessment

AbstractWe present a machine learning system for forecasting forced displacement populations deployed at the Danish Refugee Council (DRC). The system, named Foresight, supports long‐term forecasts aimed at humanitarian response planning. It is explainable, providing evidence and context supporting the forecast. Additionally, it supports scenarios, whereby analysts are able to generate forecasts under alternative conditions. The system has been in deployment since early 2020 and powers several downstream business functions within DRC. It is central to our annual Global Displacement Report, which informs our response planning. We describe the system, key outcomes, lessons learnt, along with technical limitations and challenges in deploying machine learning systems in the humanitarian sector.

The impact of more able managers on corporate trade credit

We investigate how high-ability managers affect trade credit policies of U.S. publicly traded companies from 2003 to 2016. Consistent with the prediction of an “Imbalance of power” in the supply chain, we find that firms with more able managers implement more favorable trade credit policies with both upstream and downstream business partners (i.e., fewer trade credit days in receivables, more trade credit days in payables, and lower net trade credit days), indicating that managerial ability is an important determinant of corporate trade credit. Our cross-sectional analyses provide further support for the bargaining power view of trade credit. The results are robust to various tests mitigating the endogeneity concerns. This study sheds light on the importance of more able managers in working capital and supply chain management.

Towards Sustainable Downstream Production: Upstream Innovation and Business Model Development for Low-Graded Ribbed Smoked Sheet Natural Rubber in Thailand

Objective: This study from Thailand examined business model development to help transform low-graded ribbed smoked sheet (RSS) rubber into cow shoe production targeting dairy farming. With the Industry 4.0 concept of the knowledge-based economy in the central focus, the research objective was to examine both the supply and demand sides for developing a practical knowledge-based cow shoe business model. Methods: This qualitative research adopted the concepts of knowledge-based entrepreneurship (KBE) and Osterwalder's business model canvas to guide the investigative design. It used documentary analysis, in-depth interviews, and a focus group discussion as the data collection instruments. The data analysis technique was a generic interpretive approach allowing the researchers to analyze the data by constructing codes, categories, and result conceptualization based on the underpinning conceptions of KBE and the business model canvas. Results: This study confirmed cow shoe production as a potential downstream business for rubber production in Thailand with the possibility of KBE characterization of innovation, growth, and competitive advantage. Cow shoes could be sold throughout the year for cattle nourishing routines to ease the pain from hoof and claw trimming. Critical success factors for KBE development in this business included creating production technology transfer networks, promoting financial and knowledge support from rubber promotional authorities and regional universities, and developing a sustainable ecosystem for rubber production to be linked in the value chain with rubber biofuel and cattle farming industries. Conclusion: Considering that innovative rubber production was often suggested at the policymaking level, this paper has filled the knowledge gap by delivering a novel practical framework, supported by empirical evidence, to promote KBE in cow shoe business development as a sustainable downstream business.

An Explainable Forecasting System for Humanitarian Needs Assessment

We present a machine learning system for forecasting forced displacement populations deployed at the Danish Refugee Council (DRC). The system, named Foresight, supports long term forecasts aimed at humanitarian response planning. It is explainable, providing evidence and context supporting the forecast. Additionally, it supports scenarios, whereby analysts are able to generate forecasts under alternative conditions. The system has been in deployment since early 2020 and powers several downstream business functions within DRC. It is central to our annual Global Displacement Report which informs our response planning. We describe the system, key outcomes, lessons learnt, along with technical limitations and challenges in deploying machine learning systems in the humanitarian sector.

Activities and Outputs from SME and MNC Collaboration on R&I Projects

The fifth generation (5G) of telecommunication systems is creating new business opportunities for many industry verticals. Managing the innovation process is risky and calls for collaboration with various ecosystem stakeholders to meet the demands of technology, business, and customers. This article investigates the activities and output of participation in collaborative research and innovation (R&I) activities for Small and Medium Sized Enterprises (SMEs) and Multi National Corporations (MNCs) and how they engage with such activities. A survey was conducted with a non-random sample of 42 respondents involved in R&I projects and further supplemented with three in-depth interviews of a subset of the survey respondents. Our key findings indicate that SMEs benefit from technology-related activities and access to decision makers in MNCs. Heavy-handed bureaucracy in projects is a friction point for SMEs, which prefer development speed over scheduled reports and deliverables. In contrast, MNCs benefit from business-related activities by advertising technology to clients, suppliers, and downstream business models. Suggested improvements include additional client needs assessments, trialing of technology and service concepts, and dissemination of the results of R&I activities. SMEs and MNCs view establishing relationships with other partners as valuable for accessing key competencies and vertical industry ecosystems. Our findings provide novel insight in the collaboration of R&I projects with SMEs and MNCs and contributes to the business ecosystem and open innovation literature. Further research should include follow-up studies of the SME–MNC collaboration towards commercialization of innovative 5G use cases.

Distribusi Dan Transportasi Bio Solar Di Jawa Timur

Government Regulation Number 36 of 2004 concerning Downstream Oil and Gas Business Activities, the government regulates, fosters, and supervises the implementation of downstream business activities which includes guaranteeing the availability and smooth distribution of fuel throughout the territory of the Unitary State of the Republic of Indonesia. Vehicle Routing Problem (VRP) which is a form of route problem involving vehicles to distribute goods to customers with the aim of minimizing the total distance, minimizing the use of vehicles and the overall distribution time which is expected to reduce errors in selecting gas stations into road routes. Based on the application of the fuel distribution system to gas stations in East Java, especially in the Bojonegoro Regency area using the Vehicle Routing Problem (VRP) method, using a tanker with a capacity of 40 KL is more effective than a tanker with other capacities, distance and operating costs for a tanker of 40 KL the results after the application of the VRP method are more effective than the current distribution patterns, if the VRP method is used it will produce several benefits, including reducing the total mileage of the previous tank car from 3,740 KM to 1,058 KM compared to the current average total mileage of TBBM Semarang-To gas stations in Blora. There was a saving in the cost of diesel fuel from IDR 25,432,000 to IDR. 7,194,400 per day considering there is great efficiency, the pattern for sending Bio Solar fuel from TBBM Tuban to gas stations in Bojonegoro Regency uses a new route using a tanker capacity of 40 tons.

From ICE to BEVs : What changes of downstream business ecosystems to wait

From ICE to BEVs : What changes of downstream business ecosystems to wait

From ICE to BEVs: what changes of downstream business ecosystems to wait

From ICE to BEVs: what changes of downstream business ecosystems to wait

Cattle corporation village program as small-scale farmer group empowerment to support National beef self sufficiency

Government of Indonesia has implemented various programs to increase cattle population and beef production. In 2020, Directorate General of Livestock and Animal Health Services, Ministry of Agriculture has introduced Cattle Corporation Village Program (CCVP). The study aims to identify the capability of small-scale farmer group empowered by CCVP on good farming practices, availability of forage, utilization of infrastructure and colony cages, and corporate institution formed by farmers. The study was located at Cianjur District in 2022. The primary and secondary data were obtained by survey and interview that analyzed by qualitative descriptive. The results of the study indicate: (1) capability of farmer is encouraged to develop good farming practices with business scale; (2) the productivity of cattle should be supported by the sufficiency of forages and additional concentrate; (3) facilities has been provided by CCVP utilized by farmers, however the improvement of some facilities may required; and (4) CCVP is designed as profitable integrated corporation farming for small-scale farmers with upstream to downstream business integration. Through the CCVP, farmers are empowered and assisted in implementing good farming practices with business-scale. In addition, they will obtain some support from various institution and stakeholders to increase their income and welfare.

ANALISIS PERATURAN PERUNDANGAN-UNDANGAN MENGENAI EKSPANSI PERUSAHAAN GROUP DI SEKTOR PERTAMBANGAN BATUBARA

In relation with the coal mining business growth in Indonesia for the past 10 years, than it must also supported with the fulfillment of the applicable Laws, than the purpose of this disertation are, first, the author eagers to know and to find the Laws which specifically regulates the expansion buoying of Group Company especially in coal mining sector. Second, the author eagers to know about the implementation of Group Company expansion in coal mining sector. Third, to know, analyze, and to find the implication of Group Company expansion in mining sector toward monopoly practice and unfair business competition. In this research, the author uses the Juridical Empirical Method, a procedure of solving research problems by first, researching secondary data to continue with the primary data research on field. As for the type of the research are Literature and Field research. The results of this research are, first, that the Law No. 4 Year 2009 regarding Mineral and Coal Mining regulates about the buoying of group company, mentioning that the IUP and IUPK owners are banned from involving their sister company and/or their affiliation in mining service industry located in their mining area, except they have the Minister’s License. Meanwhile maximum area ownership of IUP in group company is not restricted. Second, the most common group expansion in coal mining industry are by establishing holding company, acquisition and joint venture. The principal motive of these actions are economy and psychology. Third, group company expansion in coal mining industry implicates on the growth of new companies and directly implicate the ownership of holding company shares in the sister company. In addition, group company expansion also implicates the business diversification as part of strategic action in order to dominate the upstream and downstream business. Last, group company expansion implicates on the rise of coal production which is at current condition it has not been implicates to monopoly prctice and unfair business competition. The coal production has major role in supporting the National and Regional development.

Wine industry perceptions and reactions to the COVID-19 crisis in the Old and New Worlds: Do business models make a difference?

The COVID‐19 crisis has severely impacted the wine industry, with producers in different countries affected differently and, therefore, differing in their perceptions toward it. These differing perceptions are assumed to be due to different business models, mainly linked to the distribution system adopted and resulting in varying distances of producers to distributors and consumers. While upstream integration characterizes the Old World, the New World applies a downstream business model, being more closely linked to distributors and consumers and, therefore, more vulnerable to shocks, which should lead to higher perceived impacts of the COVID‐19 crisis. This study analyzes 542 surveys collected from wineries in nine countries, divided into New World, historical Old World, and emerging Old World. Econometric results show statistically significant differences in both the perceived impact of COVID‐19 and wineries' responses in terms of planned investments, with the New World being more affected. A common desire by wineries to direct future investments towards direct‐to‐consumer sales and communication was found, to the detriment of investments in vineyards and cellars. This desire is particularly strong in the New World, in line with their focus on the downstream part of the value chain, underlying their greater reactivity to shocks and capacity to innovate. [EconLit Citations: D22; L21; L66; Q13].

Differential Effects of Received Trade Credit and Provided Trade Credit on Firm Value

With over half a trillion dollars in trade credit flowing between firms in the United States, it is critically important for managers to understand how the trade credit that their firm receives and provides affect its value. Trade credit is a strategic investment in supply chain relationships that allows the recipient to make payment later rather than at the time of the sale. A firm provides trade credit to its downstream business customers and also receives trade credit from its upstream suppliers. Although research has shown that provided trade credit builds a firm's shareholder value, it has not examined what effect, if any, received trade credit has on the firm's value. As a result, one might assume that received trade credit affects firm value in the same manner as provided trade credit. We argue otherwise and show that received trade credit and provided trade credit have differential effects on firm value. Received trade credit has a negative direct effect and a positive indirect effect (through profit), whereas provided trade credit has a positive direct effect and a negative indirect effect. The difference in direct effects hinges on the disparate nature of dependence in the supply chain. Provided trade credit increases customers' dependence on the firm, building the firm's value. In contrast, received trade credit increases the firm's dependence on its suppliers, destroying the firm's value. Empirical results using a sample of 2804 firms from 1986 to 2017 provide robust support for the hypotheses. They show that managers risk overestimating the value of a 1 SD increase in received (provided) trade credit by $284.74 ($74.95) million, on average, if they do not consider both the direct and indirect effects it has on their firm's value.

DETERMINATION OF NATURAL GAS PRICING THROUGH PIPELINE IN DOWNSTREAM BUSINESS ACTIVITIES FOR COMMERCIAL CUSTOMERS IN WORK AREA SOR II SOUTH SUMATERA-WEST JAVA (SSWJ)

Indonesia is a developing country that still depends on fossil fuels. Natural gas is one of the energy sources used as an alternative fuel for Indonesia's future to support national energy needs. This is because the amount of natural gas reserves in Indonesia are still classified as safe for the next several decades with increasing demand. The government has imposed a gas price for industry of USD $ 6 per MMBTU in accordance with the implementation of Presidential Regulation Number 40 of 2016 concerning Natural Gas Pricing. This strategic policy is believed to be able to boost the competitiveness of the domestic manufacturing sector so that it will make a significant contribution to the national economy. However, on the business entity side, this policy is considered to be detrimental because it is still unclear about the government intensive that is given to business entities. The purpose of this study is to analyze a case regarding the determination of the downstream selling price of natural gas for industrial costumers which should be in accordance with the parameters of the downstream selling price of natural gas. The results (output) obtained from this study indicate the process of optimizing the selling price of natural gas in downstream business activities to obtain the ideal value.