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Teak Furniture And Business Responsibility: A Global Value Chain Dynamics Approach

Author

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  • Herry Purnomo

Abstract

Teak furniture business development aims at achieving the three millennium development goals of global partnership, poverty alleviation and environmental sustainability. A value chain of teak furniture connects teak growers with furniture retailers in Europe, the United States and Japan. It distributes value added along the chain, but it produces imbalance of income distribution and pressure on teak plantation sustainability. This paper integrates value chain analysis and systems dynamic approach to observe baseline trends and glimpse future scenarios of teak forest and incomes to various actors participating in the teak business. Future scenarios to obtain premium prices through Fair Trade and business responsibility of international furniture retailers will not only restore the teak furniture business but also foster great leaps in teak plantation sustainability and the livelihoods of teak growers and small to medium-sized teak furniture enterprises. Collective action among them in defining rules and a low level of land conflicts are necessary conditions for success.

Suggested Citation

  • Herry Purnomo, 2006. "Teak Furniture And Business Responsibility: A Global Value Chain Dynamics Approach," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 54, pages 407-439, December.
    • Handle: RePEc:lpe:efijnl:200614
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    Cited by:

    1. Lopata Ewelina & Rogatka Krzysztof, 2021. "CSR&COVID19 – How do they work together? Perceptions of Corporate Social Responsibility transformation during a pandemic crisis. Towards smart development," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 53(53), pages 87-103, September.

    More about this item

    Keywords

    Teak; Furniture Industries; Value Chain; Business Responsibility; Scenario;
    All these keywords.

    JEL classification:

    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General

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