Relationship between Efficiency, Innovative Capabilities and Export Performance from the Perspective of the Coffee Agroindustry in East Java

Authors

  • Gyska Indah Harya Department of Agribusiness , Faculty of Agriculture, Universitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya 60294, Indonesia
  • Teddy Prima Anggriawan Law Study Program, Faculty of Law, Universitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya 60294, Indonesia
  • Teguh Soedarto Department of Agribusiness , Faculty of Agriculture, Universitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya 60294, Indonesia
  • Sri Tjondro Winarno Department of Agribusiness , Faculty of Agriculture, Universitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya 60294, Indonesia
  • Fahriyah Department of Socio Economics, Faculty of Agriculture, Brawijaya University 65145, Indonesia
  • Gideon Setyo Budiwitjaksono Department of Accounting, Faculty of Economic, Universitas Pembangunan Nasional " Veteran" Jawa Timur, Surabaya 60294, Indonesia

DOI:

https://doi.org/10.11594/nstp.2025.41148

Keywords:

Innovative capabilities, export pervormance, PLS

Abstract

A new stage of intense competition will soon begin in the coffee agroindustry, where all business actors will concentrate on becoming low-cost producers. When the East Java coffee agro-industry business unit shows a downward trend from year to year, the problem becomes more complicated. Although the number of coffee agro-industry business units was reported to be 78 units in 2019, ironically by mid-2023, this number will fall to only 62 units. A percentage of 80% of Robusta coffee bean production is exported and only 20% of the coffee beans enter the domestic industrial processing stage. Moreover, during the pandemic outbreak in 2019-2022, which was the background to the export restriction policy, it faced problems with the raw material procurement cycle being hampered and even problems with delivering products for consumption by exporters. Considering these conditions, the East Java coffee agroindustry can reorganize the use of distribution of production inputs and the level of innovative capabilities to build a profitable and sustainable position. The general aim of this research is to analyze the relationship between industrial efficiency variables, innovative capabilities, and coffee agro-industry performance, and formulate policies and strategic steps to increase coffee agro-industry exports in East Java. The selection of sample locations was based on the domicile of the coffee agro-industry in East Java which was recorded as active at the East Java Province Industry and Trade Service. Data collection techniques include interview techniques, observation techniques, free interviews with key informants, and field notes (documentation). The data analysis method uses SEM- Partial Least Square. This research goal will later become a reference for business actors or the coffee agroindustry as a tool for making appropriate production decisions in increasing innovative capabilities and maintaining or increasing efficiency for profit-oriented sustainability, coffee agroindustry.

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References

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Published

26-05-2025

Conference Proceedings Volume

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How to Cite

Harya, G. I., Anggriawan, T. P., Soedarto, T., Winarno, S. T., Fahriyah, & Budiwitjaksono, G. S. (2025). Relationship between Efficiency, Innovative Capabilities and Export Performance from the Perspective of the Coffee Agroindustry in East Java. Nusantara Science and Technology Proceedings, 2024(47), 982-993. https://doi.org/10.11594/nstp.2025.41148

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