A Conceptual Framework of Collaboration Organization Model for Business Sustainability to Support Rural Development

This title has been presented on Friday, December 15, 2023 at 11.55-12.05 GMT+7.

Abstract

This title has been presented on Friday, December 15, 2023 at 11.55-12.05 GMT+7.

Many scientists have researched business models, but only a few have discussed how to implement it in rural areas where most people work in the agricultural sector. It is considering a global trend seeking solutions for improving agricultural and economic productivity in rural areas. It seems reasonable to explore a new business model the intersection between sustainable agriculture and social business. The study aims to propose a conceptual framework of sustainable business model that can be applied in rural areas by integrating three existing organizations in rural Indonesia: the food crop farmers communities, livestock farmers communities, and rural microfinance organizations. The proposed framework is adoption of collaborative organizational model which will alter the complexity impact towards the mentioned organizations. The Collaborative model of organizations viewed from four key principles: Ethic of contribution, interactive process management, participative centralization, and T-shaped skills. The methods used were focus group discussions and in-depth interviews with stakeholders in three villages, in East Java Province, Indonesia, as the pilot project location. The study contributes to the existing literature by improving understanding of the importance of a sustainable business model in the context of rural areas in developing countries.