Cooperate or Compete (?): Implementing Porters Framework on an Integrated Farming System in Rural Bandung, Indonesia
Kurniawan Saefullah, Rachmat Sudarsono, Yunizar, Layyinaturrabbaniyah & Arie Widyastuti

Universitas Padjadjaran

Abstract

Competitive Advantage Theory (CAT), which was introduced in the late 1980s, has been used in various business analyses and practices. Business performance through this theory can be achieved either through lowering cost in doing business or creating different value for customer. In agriculture sector, the implementation of this strategy is rather complex. The business nature, the agents, the channels as well as the regulation have been challenging business players in the area. Integrated Farming System has been used to create business value for all agents in the agriculture sectors. In this system, cooperative strategy has been accommodated to support the value creation.
This paper attempts to investigate whether a competitive or cooperative strategy is more preferable in the creating value in Agriculture sector, where the Integrated Farming Systems is applied. By using a non-participative observation and interview with some key informants in the Rural Bandung of West Java Indonesia, the study suggests that the ability of farmers to compete is subject to their ability to cooperate among existing agents and local institutions at the community level.

Keywords: Competitive Advantage Theory, Cooperative Strategy, Agriculture, Integrated Farming System, Value Creation

Topic: Green Business