00074918.2013.779770

(1)

Full Terms & Conditions of access and use can be found at

http://www.tandfonline.com/action/journalInformation?journalCode=cbie20

Download by: [Universitas Maritim Raja Ali Haji] Date: 17 January 2016, At: 23:41

Bulletin of Indonesian Economic Studies

ISSN: 0007-4918 (Print) 1472-7234 (Online) Journal homepage: http://www.tandfonline.com/loi/cbie20

Sustainable Supply Chain Management: A Case

Study of Indonesia's Cocoa Industry

Normansyah Syahruddin

To cite this article: Normansyah Syahruddin (2013) Sustainable Supply Chain Management: A Case Study of Indonesia's Cocoa Industry, Bulletin of Indonesian Economic Studies, 49:1, 114-115, DOI: 10.1080/00074918.2013.779770

To link to this article: http://dx.doi.org/10.1080/00074918.2013.779770

Published online: 21 Mar 2013.

Submit your article to this journal

Article views: 2028

(2)

114 Abstracts of doctoral theses on the Indonesian economy

The thesis asserts that Indonesian parents do not have a low preference for education but do face constraints to human-capital investment. These constraints can be relaxed – for example, by the government expanding the distribution of electricity for educational use to under-developed areas, or allocating a dispro-portionately high number of scholarships to children who are just about to com-plete grade 8 or grade 9, to ensure that they graduate. The thesis also inds that Indonesian parents value non-formal and informal schooling.

Sustainable Supply Chain Management: A Case Study of Indonesia’s Cocoa Industry

Normansyah Syahruddin ([email protected]) Accepted 2012, University of Bergamo

Since sustainable development was highlighted in 1987 as an important issue by the then World Commission on Environment and Development, many countries and irms have pursued excellence in sustainable practices related to the environ-ment, human resource management and quality management. To some extent, the agricultural sector has led this shift.

However, discussions of sustainable agricultural supply chains count for only one-tenth of the total literature on sustainable supply chains. Much research has focused on separate sustainable practices (rather than taking a holistic view), and this has potentially under-estimated the effect of such practices on national sup-ply chain operations. While sustainable agricultural supsup-ply chains are important to a country’s economic development, concerns about food safety have become a major issue for supply chains following food recalls around the world. Moreover, a relative lack of attention to farmers as the irst stage of the agri-food chain has inhibited the application of sustainable supply chain management in Indonesia’s agricultural sector.

This thesis examines the role of sustainable supply chain management in Indo-nesia’s cocoa industry. It argues that IndoIndo-nesia’s agricultural supply chains are linked to its economic development, and that this link is as strong as that in any other country. Indonesia’s cocoa supply chain serves as an example for under-standing how sustainable practices can be implemented in the agricultural supply chain as a whole: cocoa is an essential agricultural commodity in many coun-tries, and it plays an important role in the international food market. The cocoa industry itself employs millions of farmers worldwide, contributes signiicantly to eradicating poverty in many countries, and provides employment downstream and upstream. In Indonesia, it has faced several impediments to the introduc-tion of sustainable practices, such as the low incomes of farmers, the use of child labour, and the use of conventional transport vehicles for commercial purposes.

The results of the research suggest that implementing various sustainable prac-tices in each stage of the supply chain determines the performance of the supply chain as a whole. That is, implementing a sustainable practice in one link of the supply chain will affect not only the immediate parts of the chain but also its inal

(3)

Abstracts of doctoral theses on the Indonesian economy 115

stages. The results also suggest that contingencies such as mutual trust, long-term relationships and the degree of information sharing will determine how success-fully sustainable practices can be adopted and, hence, their effect on supply chain performance.

The Dynamics of Entrepreneurial Human Capital

Russell Toth ([email protected]) Accepted 2012, Cornell University

There is broad international recognition of the importance of entrepreneurship for economic growth and development, yet we know relatively little about the process by which entrepreneurs come into being and achieve success. Existing economic theories of entrepreneurial dynamics are often based on constraints (in particular, inancial constraints) that are external to entrepreneurs and their enter-prises. This thesis proposes that entrepreneurial human capital (EHC) constitutes a crucial and largely overlooked factor in entrepreneurial dynamics, at least in the economics literature. It builds models that capture the relevant mechanisms, and then tests them by using the rich data on occupational histories and enterprise characteristics collected during the four waves of the Indonesia Family Life Sur-vey.

The thesis begins by revisiting the evidence for inancial constraints to house-hold-level enterprise activity in Indonesia. It introduces a new test to the literature, using semi-parametric econometric methods to observe the relationship between household wealth and enterprise activity while controlling for additional covari-ates. It also constructs tests based on positive wealth shocks as a form of positive inancing shock. It uncovers important heterogeneity in inancial constraints and refutes that inancing is the binding constraint to enterprise activity in most per-centiles of the wealth distribution, particularly for the poor.

In the remaining two chapters, the thesis tests variants of a model of dynamic EHC accumulation. First, it exploits a unique natural experiment that causes rel-atively high-ability individuals to accumulate enterprise experience when they otherwise would not have done so, through labour-market churning during the inancial crisis of the late 1990s. It inds that individuals who were self-employed or were running a business early in their careers and during the crisis had a much higher propensity to be running a business nine years later than did other cohorts. In looking at earnings dynamics, the thesis inds that this cohort initially had lower business earnings than their counterfactual expected wage but then had higher earnings over time. It argues that these facts are consistent with a model of EHC accumulation, which predicts that changes in EHC through learning-by-doing should lead to greater persistence, and that this effect should be particu-larly strong for individuals with no prior experience. The thesis also exploits the occupational shock, to provide causal evidence for an economically signiicant value of entrepreneurial experience.