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Devi Andriyani
Ekonomi Pembangunan, Fakultas Ekonomi Dan Bisnis, UNIMAL
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THE ROLE OF OPERATIONAL CAPABILITIES IN TRANSFORMING LONG-TERM PRODUCTION COSTS AND PLANTATION INVESTMENT INTO SUSTAINABLE PRODUCTIVITY : EVIDENCE FROM GAYO ARABICA COFFEE AGRIBUSINESS Devi Andriyani; Ichsan; Hijri Juliansyah; Ratna
International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) Vol. 6 No. 4 (2026): August
Publisher : CV. Radja Publika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.5281/zenodo.21404775

Abstract

Sustainable productivity has become a strategic issue in the development of Gayo Arabica coffee agribusiness due to increasing production costs, the need for plantation investment, and the growing demand for efficient and sustainable farming practices. This study aims to examine the effects of long-term production costs and plantation investment on sustainable productivity through operational capabilities in the Gayo Arabica coffee agribusiness sector in Aceh, Indonesia. A quantitative approach with an explanatory research design was employed. Data were collected through a survey of Gayo Arabica coffee farmers using a structured Likert-scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results indicate that long-term production costs and plantation investment have positive and significant effects on operational capabilities. Furthermore, both variables positively and significantly influence sustainable productivity. Operational capabilities also have a positive and significant effect on sustainable productivity and mediate the relationships between long-term production costs, plantation investment, and sustainable productivity. These findings suggest that improvements in coffee productivity are not determined solely by the amount of production costs and investments incurred, but also by farmers’ ability to effectively manage resources, technology, and operational processes. This study reinforces the Resource-Based View and Dynamic Capability Theory by highlighting the critical role of operational capabilities as a mechanism for transforming resources into sustainable performance. Practically, the findings provide valuable insights for policymakers, cooperatives, and agribusiness stakeholders in formulating strategies to enhance the sustainable productivity of Gayo Arabica coffee through increased investment and the development of farmers’ operational capabilities.
Co-Authors Abda Abda Agus Susanti Amanda Adelia Andriya Risdwiyanto Anggia Putri Ansori, M. Subra Arliansyah Arliansyah, Arliansyah Ayu Mahyu Aznuriliana Aznuriliana Baehaqi Bambang Priadi Cut Putri Mellita Sari Darmawati Muchtar Dendy Kharisna Diah Fatma Sjoraida Dini Vientiany Dona Rivanka Eka Mulia Erica, Linda Fajar Aulia Ramadhan Falahuddin Falahuddin Falahuddin, Falahuddin Fanny Nailufar Fatahillah Fuadi Fuadi Fuadi Fuadi Gulo, White Asmara Gustine, Gin Gin Hastiani Nasution Hendra Raza Hijri Juliansyah Hijri Juliansyah Hijri Juliansyah Hijri Juliansyah Humalia humalia I Gusti Bagus Wiksuana Ichsan Ichsan Ida Fitriyani Indrayani Indrayani Intan Maghfirah Isfihani Isfihani Jariah Abu Bakar Jefri Pratama Lingga Jumilah Jumilah Khairil Anwar Lian Muhammad Rizky Lili Halimah Lilis Suryani M. Rizky Ananda Mariyudi Masyita, Siti Mauliza Mauliza Muhammad Rizka Mukhlis M.Nur Munandar Munandar Munandar Munandar mutia fhazira Mutia Rahmah Naf’an Pangidoan Naufal Haidar Ahmada Nulhanuddin Nulhanuddin Nur Mauliza Nurhadi al siddiq Putri Rahmayani Putri Sara Purba Ramziati Piqqa Ratna Ratna Ratna Ratna Ratna Ratna Rauzatul Ulfa Reza Juanda Rizka Abdillah Safitri, Delviana Siti Khairani Simanjuntak Sri Wahyuni suza agustia pratiwi Syafira, Syarifah Syarifah Safira Syarifah Sri Rohayaa Syarifah Syafira Tarmizi Abbas Tarmizi Abbas Try Wahyu Syahputra Ulfa Maulina Usman, Umaruddin Usratul Maulini Wardah Wardah Yomi Romlah, Oom Yurina Yurina Yurina Yurina Yuziani, Yuziani Zahara Zahara Zulkar Naini