Mendorong pertumbuhan ekonomi komunitas pertanian: Peran Market capability, institutional support, dan innovation adoption
DOI:
https://doi.org/10.26740/jim.v14n3.p698-714Keywords:
agriculture, economic growth, institutional support, innovation adoption, market capabilityAbstract
This study examines the relationships among market capability, institutional support, innovation adoption, and economic growth in Indonesian agricultural commodity companies. Previous studies have largely examined market capability in relation to firm performance or innovation separately, while limited research has integrated market capability and institutional support with innovation adoption to explain economic outcomes in the agricultural commodity sector. Addressing this gap, this study develops and empirically tests a model in which innovation adoption functions as a mediating mechanism linking market capability and institutional support to economic growth. A quantitative cross-sectional design was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM) based on data from managerial-level respondents from agricultural commodity companies in Indonesia. The findings indicate that market capability has a positive and significant effect on economic growth and innovation adoption. Institutional support also has a positive and significant effect on both economic growth and innovation adoption. Furthermore, innovation adoption has a positive and significant effect on economic growth and acts as a significant mediating mechanism in the relationships between market capability and economic growth, as well as between institutional support and economic growth. The study contributes by positioning innovation adoption as a mechanism through which market capability and institutional support are translated into economic growth. These findings provide practical implications for strengthening market capability, institutional support, and innovation adoption to enhance the economic growth of agricultural commodity companies.
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