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All Journal Hasanuddin Economics and Business Review
Khairina , Indria
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Economics, Econometrics & Finance

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Agribusiness Performance through Innovation: The Case of Arabica Bemba Coffee in Enrekang Khairina , Indria; Rusdi, Muhammad; Herman, Bahtiar
Hasanuddin Economics and Business Review VOLUME 9 NUMBER 3, 2026
Publisher : Faculty of Economics and Business, Hasanuddin University, Makassar, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.26487/hebr.v9i3.6777

Abstract

This study examines how innovation capability and market orientation influence agribusiness performance through post-harvest process innovation in the case of Bemba Arabica in Enrekang. A quantitative-explanatory design using PLS-SEM was employed with 80 multi-source respondents (farmers/groups, operators/QC, managers/marketing, B2B buyers). A Likert-type 1–5 instrument was tested for reliability and validity; a structural model assessed direct, indirect, and total effects. Results indicate innovation capability and market orientation have a significant positive effect on process innovation; process innovation has a significant positive effect on agribusiness performance. The direct effect of innovation capability on performance is small but significant, while the direct effect of market orientation on performance is insignificant indicating a dominant mediating role of process innovation. Findings confirm that standardized SOPs for fermentation–drying, QC/cupping, and traceability are the primary pathways for converting “market voice” and innovation capability into economic value. Practical implications include prioritizing standardization across suppliers, strengthening measurement/experimentation capacity, and managing structured market feedback.
Co-Authors Herman, Bahtiar Muhammad Rusdi