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All Journal International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) Journal of Malikussaleh Public Economics Jurnal Ekonomi Regional Unimal International Review of Practical Innovation, Technology and Green Energy (IRPITAGE) Journal of Accounting Research, Utility Finance and Digital Assets (JARUDA)
Ratna
Universitas Malikussaleh
Humanities Economics, Econometrics & Finance Education Energy Social Sciences Other

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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 Aiyub Yahya Bakhtiar Bakhtiar Cut Putri Mellita Sari Devi Andriyani Fanny Nailufar Hijri Juliansyah Ichsan Khairil Anwar Lisma Putri Maisyura Maisyura Miftahul Jannah Murtala Murtala Mutia Rahmah Mutiara Andini Noviami Trisniarti Putri Nabila Ressa Dwiarti Saharuddin Saharuddin Salsabila Azzahra Haryu Putri Sindy Suhertika Syukriah Taufiq Taufiq Ulfa Sunna YANITA YANITA Yuli Annisa Zulmiardi