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Strategy and Innovation of Mushroom Business in Rural Area Indonesia: Case Study of a Developed Mushroom Enterprise from Cianjur district, West Java, Indonesia

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  • Rendi Febrianda
  • Hiromi Tokuda

Abstract

Mushroom farming has become attractive business in agricultural sector due to its simplicity and flexibility of cultivation and quite profitable. Health awareness of Indonesian people about mushroom gives a positive impact to mushroom business. Behind the good aspects, several evidence argued that production performance of mushroom business is not optimal related to less capacity and deficiently appropriate knowledge. This paper aims to learn the unique strategy and innovation from local mushroom enterprise which is very famous in Cianjur distric, West Java, Indonesia in order to improve the business performance. Using technological (innovation) approach and qualitative method, this study concluded that there are two types of strategies, one relating to the technological part, and the other relating to the organization part. The technological focuses on attracting market and enhancing the yield productivity. The organization part focuses on developing capacity to fulfill the demand by making a contract agreement resembling contract farming with local society. For local society, the contract agreement has benefit to minimize both market failure and production problems under supervison support and without monopoly action. The strategies were capable of being successful innovation by interacting and cooperating with external sources, and performing certain adjustment with local condition.

Suggested Citation

  • Rendi Febrianda & Hiromi Tokuda, 2017. "Strategy and Innovation of Mushroom Business in Rural Area Indonesia: Case Study of a Developed Mushroom Enterprise from Cianjur district, West Java, Indonesia," International Journal of Social Science Studies, Redfame publishing, vol. 5(6), pages 21-29, June.
    • Handle: RePEc:rfa:journl:v:5:y:2017:i:6:p:21-29
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    References listed on IDEAS

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    1. Carlsson, B & Stankiewicz, R, 1991. "On the Nature, Function and Composition of Technological Systems," Journal of Evolutionary Economics, Springer, vol. 1(2), pages 93-118, April.
    2. Masakure, Oliver & Henson, Spencer, 2005. "Why do small-scale producers choose to produce under contract? Lessons from nontraditional vegetable exports from Zimbabwe," World Development, Elsevier, vol. 33(10), pages 1721-1733, October.
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    Cited by:

    1. Rendi Febrianda & Hiromi Tokuda, 2018. "Learning the Adoption of Mushroom Farming Partnership: A Case Study of Farmers and an Enterprise from Cianjur Distric, West Java, Indonesia," International Journal of Social Science Studies, Redfame publishing, vol. 6(7), pages 1-13, July.

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    More about this item

    Keywords

    mushroom farming; mushroom enterprise; mushroom business; innovation; contract farming;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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