This study investigated the influence of Dynamic Capabilities (DC) and Digital Transformation (DT) on Business Resilience During the COVID-19 Pandemic. Using cross-sectional data from 388 micro, small, and medium enterprises (MSMEs) of beekeeping in Indonesia. Furthermore, the data were analyzed by Structural Equation Model (SEM) analysis and executed by SmartPLS 3.0 software. The main results of this study indicate that DC plays an important role in improving MSMEs’ DT. However, the essential role of DT on firm resilience only happened for micro, small, and medium firms of family businesses. However, DT has an insignificant effect on firm resilience in small nonfamily businesses. Yet, the effect of DC on firm resilience is mediated by DT. Nevertheless, our empirical findings indicate heterogeneous effects among micro, small, and medium firms. Based on the study’s findings, we suggested that the policy implication in developing beekeeping firms should be more specific based on the firm scale. The results of this study can be generalized to the national level to inform decision-making regarding the intangible assets of MSME livestock products in developing countries. The findings are also relevant to other livestock products, which tend to be dynamic during a crisis.
The impacts of climate change on marine capture fisheries have been observed in several studies. It is likely to have a substantial effect on fishers’ income and food security. This study aims to estimate the impact of adaptation strategies on fishers’ income and their household’s food security. Data were collected from small-scale fishers’ households, which own a fishing boat smaller or equal to five gross tonnages (GT). The study sites were the two coastal regions of Malang and Probolinggo in East Java, Indonesia, due to the meager socioeconomic resources caused by climate change. A probit regression model was used to determine the factors influencing the fishers’ adaptation. Propensity score matching (PSM) was applied to evaluate the impact of the adaptation strategies on income and food security. Food security was measured by food consumption score (FCS). The findings indicated that participation in the fishers’ group affected adaptation strategies significantly, and so did the access to credit and climate information. Also, PSM showed that the adaptation strategies had a positive and significant impact on fishers’ income and food security. Those who applied the adaptation strategies had a higher income and FCS than those who did not. This finding implies that the fishery sector’s adaptation strategies can have significant expansion outcome and reduce exposure to risks posed by climate change. Therefore, the arrangement of more climate change adaptation strategies should be promoted by the government for small-scale fishers in Indonesia.
12 April 2022 in International Journal of Sustainable Development & World Ecology
Although climate change adaptation plays a vital role in improving global food security, little is known about whether it can increase household food security of small-scale fishermen. This study offers new evidence by investigating the effect of climate change adaptation on household food security, measured by the food insecurity experience scale (FIES) and food consumption score (FCS). The cross-sectional data were collected from 301 small-scale fishermen in East Java Province, Indonesia. This study applied two-stage residual inclusion (2SRI), and two-step predictor substitution (2SPS) approaches to solve an endogeneity issue in modelling the effect of climate change adaptation on household food security. This is achieved by considering the observable and the unobservable factors. The empirical result indicates that climate change adaptation significantly improves household food security. Further estimation also highlights the positive and significant effect of adaptation intensity on the food security measurement. Therefore, this study suggests that fishermen continuously apply adaptation strategies to improve their food security.
Climate disasters pose a risk to residents’ well-being globally. However, information about the impact of climate disasters among urban and rural residents remains lacking, especially in Indonesia. This study aims to fill the gap by investigating the impact of climate disaster on subjective well-being based on urban and rural typology model. The data were cross-sectional, involving 7110 Indonesian residents who had experienced climate disasters, 3813 from urban areas and 3297 from rural areas. An ordered probit model was employed to estimate the impact of climate disasters on subjective well-being (i.e., happiness and life satisfaction). In general, the empirical results show that climate disasters do not significantly affect the happiness of Indonesian residents, but they significantly and negatively impact their life satisfaction. Further analysis reveals that climate disasters impact urban and rural residents differently. The subjective well-being of rural residents is more severely affected than those living in urban areas. Further estimation also indicated that climate disaster significantly reduces residents’ subjective well-being at the lowest income level for both rural and urban residents. Our finding confirms that rural residents remain the most vulnerable to the impacts of climate change.
Agroforestry has an essential role in reducing global poverty and maintaining environmental sustainability. However, little is known about the association between agroforestry and farmers’ welfare. This study aims to estimate the factors affecting agroforestry adoption and its impact on smallholder farmers’ welfare. The cross-sectional data were collected from 301 potato farmers in East Java, Indonesia. The factors affecting farmers’ decision to adopt agroforestry were estimated using probit regression analysis. The subjective well-being was proxied by life satisfaction and happiness. The effect of agroforestry adoption on subjective well-being was measured by propensity score matching (PSM). The findings indicated that agroforestry adoption was positively and significantly affected by whether the land is terraced, farmers’ age and education level, and farmers’ participation in social activities, cooperatives, and farmers’ groups. The PSM analysis shows that agroforestry adoption has a significant and positive impact on both subjective well-being indicators. Farmers who adopted agroforestry were happier and more satisfied than those who did not. The findings imply that farmers should implement agroforestry in the long term to improve their well-being.