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All Journal JPM17: Jurnal Pengabdian Masyarakat AGRITEPA: Jurnal Ilmu dan Teknologi Pertanian MIQOT: Jurnal Ilmu-ilmu Keislaman JURNAL MUQODDIMAH : Jurnal Ilmu Sosial, Politik dan Hummaniora Journal of Regional and Rural Development Planning JURNAL AGRICA AMALIAH: JURNAL PENGABDIAN KEPADA MASYARAKAT INOVASI: Jurnal Politik dan Kebijakan
Mhd. Asaad
Universitas Islam Sumatera Utara
Religion Agriculture, Biological Sciences & Forestry Arts Humanities Civil Engineering, Building, Construction & Architecture Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Environmental Science Industrial & Manufacturing Engineering Law, Crime, Criminology & Criminal Justice Materials Science & Nanotechnology Social Sciences

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The Impact Of Independent Smallholder Fresh Fruit Bunch Quality On Corporate Profit Through CPO Production Dolly Juanito; Mhd Asaad; Rasidin Karo Karo
AGRITEPA: Jurnal Ilmu dan Teknologi Pertanian Vol 13 No 1 (2026)
Publisher : UNIVED Press, Dehasen University Bengkulu

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37676/agritepa.v13i1.9497

Abstract

Purpose : This study aims to analyze the effect of Third-Party Fresh Fruit Bunch (FFB) Quality (X) on Company Profitability (Y) at PT Sinergi Perkebunan Nusantara, by specifically examining the role of Crude Palm Oil (CPO) Production Volume (Z) as a mediating variable. Methodology : The Method of this research employed quantitative by case study approach using secondary time-series data from 2021–2024, this research applies path analysis to test the proposed causal relationship model. Results : The results of the research indicate that Third-Party FFB Quality, particularly the quantity of supply dimension, has a significant and positive effect on CPO Production Volume. Increased purchase volumes effectively mitigate chronic idle capacity issues, while improvements in the intrinsic quality of FFB contribute to achieving a superior Oil Extraction Rate (OER). Furthermore, higher CPO Production Volume is proven to be a primary driver of Company Profitability through economies of scale, which substantially reduce the Cost of Goods Sold (COGS) and enhance revenue potential. Findings : These findings conclusively confirm the mediation hypothesis, whereby CPO Production Volume functions as a crucial causal bridge that transmits upstream supply chain advantages into superior corporate financial performance. Novelty: The Novelty of this research enriches the literature on operations management and production theory by providing empirical validation of the mediating mechanism of operational variables in linking raw material input quality to financial performance in industries characterized by high fixed-cost structures. Originality: The research managerial implications emphasize the urgency of shifting the paradigm from transactional relationships toward strategic partnerships with independent smallholder farmers. Conclusion: The implementation of quality-based incentive schemes and technical assistance programs is essential to ensure the sustainability of corporate profitability. Type of Paper : Research Article.
Co-Authors Afifuddin Afifuddin, Afifuddin Afifuddin, Afif Aldywaridha Aldywaridha Bambang Wahyudi Dolly Juanito Karo-karo, Rasidin Lubis, Ferry Parotua Mahyu Danil Mhd. Ilham Riyadh Mhd.Buhari Sibuea Nurhayati Nurhayati Rasidin Karo Karo Rasidin Karo-Karo Sitepu Saragih, Jef Rudiantho Sebayang, Veralianta Br Supriadi Teja Rinanda Tri Martial Yanti, Mariana Eva