SUSTAINABLE INNOVATION STRATEGIES IN WILD COFFEE SUPPLY CHAINS
Article Sidebar
Main Article Content
Abstract
The main objective of this study is to explore how sustainable agricultural practices, technology adoption and market diversification affect the economic value added of smallholder coffee supply chains in a biodiversity-sensitive context. The study also seeks to examine the mediating role of environmental performance, consumer trust and product differentiation, and to assess the moderating role of policy support, certification schemes and international trade partnerships.
This study proposes the following hypotheses: H1a: sustainable farming practices have a significant positive effect on economic value added; H1b: technology adoption has a significant positive effect on economic value added; H1c: market diversification has a significant positive effect on economic value added; H2a: environmental performance mediates the relationship between sustainable farming practices and economic value added; H2b: consumer trust mediates the relationship between technology adoption and economic value added; and H2b: consumer trust mediates the relationship between technology adoption and economic value added. economic value added; H2c: Product differentiation mediates between market diversification and economic value added. H3a: Policy support positively moderates the relationship between sustainable farming practices and environmental performance; H3b: Certification schemes positively moderates the relationship between environmental performance and consumer trust; H3c: International trade partnerships positively moderates the relationship between market diversification and product differentiation. Relationship between market diversification and product differentiation. This study utilized a quantitative, cross-sectional survey design. Data were collected from 450 smallholder coffee growers in Chiang Rai, Chiang Mai and Mae Hong Son provinces using a structured questionnaire with Likert-7 response scale and 403 valid questionnaires were returned. The study achieved a balance between statistical power and contextual representation.
This study provides empirical insights into how ecological and institutional factors interact with innovation to shape economic outcomes in sustainable agricultural supply chains. The study contributes to theory by advancing the moderating mediator model and informs practice by providing actionable recommendations for policy makers, non-governmental organizations (NGOs), and producer cooperatives seeking to enhance rural value creation in biodiversity-rich areas.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Altieri, M. A., & Nicholls, C. I. (2020). Agroecology: Challenges and opportunities for farming in the Anthropocene. Sustainability, 12(16), 6460. https://doi.org/10.3390/su12166460
Altieri, M. A., & Toledo, V. M. (2011). The agroecological revolution in Latin America: Rescuing nature, ensuring food sovereignty and empowering peasants. Journal of Peasant Studies, 38(3), 587–612. https://doi.org/ 10.1080/03066150.2011.582947
Atkinson, R. (2019). Climate change and biodiversity in the Afromontane region: Policy and practice responses. Environmental Science & Policy, 94, 1–7. https://doi.org/10.1016/j.envsci.2019.01.001
Bacon, C. (2005). Confronting the coffee crisis: Can fair trade, organic, and specialty coffees reduce small-scale farmer vulnerability in northern Nicaragua? World Development, 33(3), 497–511. https://doi.org/10.1016/ j.worlddev.2004.10.002
Barghouti, S., Kane, S., Sorby, K., & Ali, M. (2004). Agricultural diversification for the poor: Guidelines for practitioners. World Bank.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101 700108
Barrett, C. B. (2008). Smallholder market participation: Concepts and evidence from eastern and southern Africa. Food Policy, 33(4), 299–317. https://doi.org/10.1016/j.foodpol.2007.10.005
Beck-O’Brien, L., & Bringezu, S. (2021). Biodiversity and climate resilience in agricultural production systems: The case of coffee. Ecological Indicators, 125, 107560. https://doi.org/10.1016/j.ecolind.2021.107560
Behar, A. (2023). Global value chains, trade, and development: Recent trends and policy implications. World Development, 165, 106173. https://doi.org/10.1016/j.worlddev.2023.106173
Boli, M., & Meyer, J. W. (2017). Globalization and organization: World society and organizational change. Oxford University Press.
Bracken, L. J., Burgess, P. J., & Girkin, N. T. (2023). Rethinking agricultural innovation for biodiversity-rich systems. Agricultural Systems, 204, 103492. https://doi.org/10.1016/j.agsy.2022.103492
Bramel, P., et al. (2017). Conservation priorities for wild coffee species. Genetic Resources and Crop Evolution, 64(6), 1235–1248. https://doi.org/ 10.1007/s10722-016-0431-3
Bunn, C., Läderach, P., & Waller, J. M. (2020). The impacts of climate change on coffee: Assessing the risks and opportunities. Climatic Change, 162(2), 593–611. https://doi.org/10.1007/s10584-020-02885-4
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: Moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5), 360–387. https://doi.org/ 10.1108/09600030810882816
Cohen, J. (1992). A power primer. Psychological Bulletin, 112(1), 155–159. https://doi.org/10.1037/0033-2909.112.1.155
Darnhofer, I. (2020). Farming resilience: From maintaining states to shifting strategies. Agricultural Systems, 176, 102657. https://doi.org/10.1016/ j.agsy.2019.102657
Davis, A. P., Chadburn, H., Moat, J., O’Sullivan, R., Hargreaves, S., & Lughadha, E. N. (2019). High extinction risk for wild coffee species and implications for coffee sector sustainability. Science Advances, 5(1), eaav3473. https://doi.org/10.1126/sciadv.aav3473
Degato, T., & Carlos, J. (2017). Wild coffee production and market integration in Ethiopia: Challenges and prospects. African Journal of Agricultural Research, 12(21), 1853–1862.
Donovan, J., et al. (2017). Coffee quality and competitiveness in smallholder systems. World Development, 98, 72–82. https://doi.org/10.1016/ j.worlddev.2017.04.002
Donovan, J., Franzel, S., Cunha, M., Gyau, A., & Mithöfer, D. (2017). Guides for value chain development: A comparative review. Journal of Agribusiness in Developing and Emerging Economies, 7(2), 118–136. https://doi.org/ 10.1108/JADEE-07-2016-0049
Donovan, J., Poole, N., & Deevy, M. (2017). Coffee quality and competitiveness in smallholder systems: Lessons from Central America. World Development, 98, 72–82. https://doi.org/10.1016/j.worlddev.2017.04.002
Duguma, L. A., Minang, P. A., & van Noordwijk, M. (2019). Climate-smart landscapes: Integrated landscape management for sustainability. Sustainability, 11(6), 1479. https://doi.org/10.3390/su11061479
FAO. (2015). Sustainability assessment of food and agriculture systems (SAFA) guidelines. Food and Agriculture Organization of the United Nations.
FAO. (2021). The state of the world’s land and water resources for food and agriculture. Food and Agriculture Organization of the United Nations.
Fontefrancesco, M. F., & Vandebroek, I. (2024). Sustainability frameworks and indigenous production systems. Sustainability, 16(3), 1015. https://doi.org/10.3390/su16031015
Garcia, C., & Dedehouanou, F. A. (2019). Smallholder market integration and the role of informal institutions. Food Policy, 84, 1–11. https://doi.org/ 10.1016/j.foodpol.2018.12.005
Gatzweiler, F. W., Kaltschmitt, M., & Schreckenberg, K. (2021). The biodiversity economy: From concept to practice. Ecosystem Services, 49, 101275. https://doi.org/10.1016/j.ecoser.2021.101275
Grabs, J., Auld, G., & Cashore, B. (2022). Ecolabels and the governance of global value chains. Global Environmental Change, 72, 102419. https://doi.org/10.1016/j.gloenvcha.2021.102419
Grin, J., Rotmans, J., & Schot, J. (2010). Transitions to sustainable development: New directions in the study of long term transformative change. Routledge.
Grunert, K. G. (2005). Food quality and safety: Consumer perception and demand. European Review of Agricultural Economics, 32(3), 369–391. https://doi.org/10.1093/eurrag/jbi011
Hall, A., Mytelka, L., & Oyeyinka, B. (2003). Innovation systems: Concepts and implications for agricultural research policy and practice. Maastricht: UNU-INTECH.
Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach (2nd ed.). New York: Guilford Press.
Ingram, V., van den Berg, J., van Oorschot, M., Arets, E., Kikulwe, E., & Kilo, E. (2020). Governance and sustainability of value chains: Case studies of forest and tree products. Forest Policy and Economics, 118, 102219. https://doi.org/10.1016/j.forpol.2020.102219
Jha, S., Bacon, C. M., Philpott, S. M., Rice, R. A., Méndez, V. E., & Läderach, P. (2011). A review of ecosystem services, farmer livelihoods, and value chains in shade coffee agroecosystems. Ecosystem Services, 1(1), 100–112. https://doi.org/10.1016/j.ecoser.2011.12.004
Kassa, H., Dondeyne, S., Poesen, J., Frankl, A., & Nyssen, J. (2015). Transition from forest-based to cereal-based agricultural systems: A review of the drivers of land use change and degradation in southwest Ethiopia. Land Degradation & Development, 28(2), 431–449. https://doi.org/10.1002/ ldr.2575
Kerr, J. M., Vardhan, M., & Jindal, R. (2022). Incentives for sustainable land management in developing countries: Lessons from payment for ecosystem services programs. World Development, 152, 105797. https://doi.org/10.1016/j.worlddev.2021.105797
Klerkx, L., & Leeuwis, C. (2009). Establishment and embedding of innovation brokers at different innovation system levels: Insights from the Dutch agricultural sector. Technological Forecasting and Social Change, 76(6), 849–860. https://doi.org/10.1016/j.techfore.2008.10.001
Klerkx, L., Jakku, E., & Labarthe, P. (2019). A review of social science on digital agriculture, smart farming and agriculture 4.0. Agricultural Systems, 184, 102763. https://doi.org/10.1016/j.agsy.2019.102763
Krishnan, S., Davis, A. P., Rakotomalala, J. J., & Rakotobe, Z. L. (2017). Conservation of wild coffee: A key strategy for climate resilience. Biodiversity and Conservation, 26(9), 1–18. https://doi.org/10.1007/s10531-017-1334-4
Krishnan, S., et al. (2017). Conservation of wild coffee: A key strategy for climate resilience. Biodiversity and Conservation, 26(9), 1–18. https://doi.org/ 10.1007/s10531-017-1334-4
Kufa, T. (2010). Ecophysiology and agronomy of wild Arabica coffee in Ethiopia: A review. Journal of Horticulture and Forestry, 2(9), 225–231.
Läderach, P., et al. (2017). Coffee and climate change: Impacts and adaptation strategies in coffee production systems. Climatic Change, 141(1), 47–62. https://doi.org/10.1007/s10584-016-1788-9
Le Coq, J. F., Froger, G., & Pesche, D. (2011). Payments for environmental services: New opportunities for rural development in the tropics. Natural Resources Forum, 35(1), 1–5. https://doi.org/10.1111/j.1477-8947.2011.01385.x
Leeuwis, C., & Aarts, N. (2011). Rethinking communication in innovation processes: Creating space for change in complex systems. Journal of Agricultural Education and Extension, 17(1), 21–36. https://doi.org/ 10.1080/1389224X.2011.536344
Mendez, V. E., & Castillo, D. (2022). Climate change and the extinction risk of wild coffee species. Nature Plants, 8(2), 130–140. https://doi.org/10.1038/ s41477-021-01099-0
Michelsen, O., & Weitzel, M. (2020). Ecosystem services in agroforestry: A global review. Ecological Indicators, 108, 105600. https://doi.org/10.1016/j. ecolind.2019.105600
Miller, T. R., & Lee, K. (2021). Institutional gaps in innovation for biodiversity-rich agricultural systems. Agricultural Systems, 190, 103087. https://doi.org/10.1016/j.agsy.2021.103087
Montalvo, D. (2019). Sustainability certifications in the coffee sector: Scope and limitations. Sustainability, 11(10), 2905. https://doi.org/10.3390/su 11102905
Morris, W., Simons, R., & Blanchard, R. (2020). Ethical coffee consumption and consumer demand. Journal of Business Ethics, 167(4), 781–799. https://doi.org/10.1007/s10551-019-04176-3
Mueller, L., Jung, A., & Dierkes, C. (2020). Digital innovations for sustainable agriculture. Computers and Electronics in Agriculture, 170, 105247. https://doi.org/10.1016/j.compag.2020.105247
Musa, R., & Kadir, N. A. (2024). Blockchain-enabled traceability systems for sustainable agri-food supply chains: A systematic review. Journal of Cleaner Production, 406, 137109. https://doi.org/10.1016/j.jclepro.2023. 137109
Ngure, N., & Watanabe, T. (2024). Climate change impacts on coffee genetic diversity. Agriculture, Ecosystems & Environment, 362, 108546. https://doi.org/10.1016/j.agee.2023.108546
Partzsch, L., Ziegler, R., & Hatzold, J. (2021). Trust and sustainability certification. Journal of Environmental Policy & Planning, 23(1), 1–13. https://doi.org/10.1080/1523908X.2020.1836970
Pascucci, S. (2022). Supply chain integration in biodiversity-based agriculture. Journal of Rural Studies, 93, 12–22. https://doi.org/10.1016/j.jrurstud. 2022.07.013
Peluso, N. L. (2023). Agroecology, coffee, and resilience. Annual Review of Environment and Resources, 48, 315–339. https://doi.org/10.1146/annurev -environ-120620-095641
Pendergrast, M. (2015). Uncommon grounds: The history of coffee and how it transformed our world (Rev. ed.). New York, NY: Basic Books.
Penot, E., Vaast, P., & Meter, R. (2022). Integrating biodiversity conservation and coffee value chains: Lessons from East Africa. Agroforestry Systems, 96(4), 573–590. https://doi.org/10.1007/s10457-022-00786-5
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
Pretty, J. (2008). Agricultural sustainability: Concepts, principles and evidence. Philosophical Transactions of the Royal Society B:
Biological Sciences, 363(1491), 447–465. https://doi.org/10.1098/rstb.2007.2163
Raynolds, L. T., et al. (2007). Fair trade coffee: Building producer capacity via global networks. Journal of International Development, 19(7), 895–907. https://doi.org/10.1002/jid.1404
Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press.
Roy, A., & Banerjee, S. (2020). Payment for ecosystem services: A review of theory and practice. Ecological Economics, 176, 106775. https://doi.org/10.1016/j.ecolecon.2020.106775
Sathaye, J., Reilly, J., & Harvey, D. (2020). Sustainable development and agricultural innovation: Lessons for climate change. Global Environmental Change, 65, 102162. https://doi.org/10.1016/j.gloenvcha.2020.102162
Schmitt, C. B., Senbeta, F., Denich, M., Preisinger, H., & Vlek, P. L. G. (2010). Wild coffee management and plant diversity in the montane rainforest of southwestern Ethiopia. African Journal of Ecology, 48(1), 78–86. https://doi.org/10.1111/j.1365-2028.2009.01101.x
Schot, J., & Geels, F. W. (2008). Strategic niche management and sustainable innovation journeys: Theory, findings, research agenda, and policy. Technology Analysis & Strategic Management, 20(5), 537–554. https://doi.org/10.1080/09537320802292651
Scott, W. R. (2008). Institutions and organizations: Ideas and interests (3rd ed.). Sage Publications.
Shiller, R. J. (2019). Narrative economics: How stories go viral and drive major economic events. Princeton, NJ: Princeton University Press.
Silva, R., Aguiar, A., & Costa, F. (2021). Integrated sustainability strategies in agriculture. Journal of Cleaner Production, 278, 123944. https://doi.org/ 10.1016/j.jclepro.2020.123944
Tan, L., & Sitikarn, A. (2018). Market access and upgrading in agricultural value chains: The role of global buyers. International Journal of Agricultural Sustainability, 16(3), 246–259. https://doi.org/10.1080/14735 903.2018.1472414
Vieira, R. M., & Lequieu, A. M. (2021). Rural livelihoods and forest ecosystem services. Land Use Policy, 103, 105306. https://doi.org/10.1016/ j.landusepol.2021.105306
Wright, W., Bekessy, S., Lentini, P., & Garrard, G. (2024). Climate change resilience in agroforestry systems: The role of wild species. Agriculture, Ecosystems & Environment, 364, 108562. https://doi.org/10.1016/j.agee.2023.108562
