Multidimensional Business Feasibility and Strategic Capability Priorities in a Traditional Food Agroindustry: A DSS-Based Case Study of Suwar-Suwir in Jember, Indonesia
DOI:
https://doi.org/10.64268/josce.v2i2.155Keywords:
Agroindustry, Business Feasibility, Decision Support System, Dynamic Capabilities, Msme Development, Suwar-SuwirAbstract
Background: Traditional food agroindustries may possess strong product identity while remaining vulnerable to fragmented marketing, semi-modern production, informal financial recording, and weak integration across business functions.
Aims: This study evaluates the multidimensional feasibility of UD. Sari Rasa, a suwar-suwir agroindustry in Jember, Indonesia, and develops transparent strategic capability priorities from its Decision Support System (DSS) outputs.
Methods: A descriptive quantitative single-case design used DSS-UMKM version 2.0 to assess legal, marketing, production, management and human resources, business environment, and financial dimensions. Primary evidence came from the owner-manager through questionnaires, structured and unstructured interviews, and observation, while company records supported business and financial verification. The analysis retained the original 2021–2022 study period, a 10-year projection horizon, and a 15% discount rate.
Results: Management and human resources showed high feasibility (12/15), whereas marketing (60/80), production (37/50), and business environment (19/24) were classified as moderately feasible. Legal documents recorded in the study period included NPWP, SIUP, and PIRT. Financial outputs indicated feasibility, with a break-even quantity of 5,439.09 units, break-even sales of IDR 181,332,672.91, BCR of 7.23, payback period of 2.28 years, NPV of IDR 5,649,026,135.05, profitability index of 53.06, and IRR of 59.20%.
Conclusion: The enterprise was financially viable, but its development potential depended on closing capability gaps in digital market activation, production standardization, financial recordkeeping, and periodic compliance review. The study contributes a cross-dimensional interpretation that treats financial feasibility as a resource base for capability upgrading rather than as evidence that current practices should remain unchanged.
References
Abror, A. N., Pratama, F. E. A., & Putra, D. E. (2025). Integrating decision support systems in agroindustrial business development: A case study of jackfruit chips enterprises in Indonesia. Journal of Supply Chain and Entrepreneurship, 1(2). https://doi.org/10.64268/josce.v1i2.45
Agustien, N. D., Ismail, A. M., Dhamayanthi, W., & Ambarkahi, R. P. Y. (2021). Analisis pengembangan usaha agroindustri minyak atsiri pada UD Barokah Atsiri Jember. Jurnal Manajemen Agribisnis dan Agroindustri, 1(1), 32–41. https://doi.org/10.25047/jmaa.v1i1.7
Ahmed, A., Bhatti, S. H., Gölgeci, I., & Arslan, A. (2022). Digital platform capability and organizational agility of emerging market manufacturing SMEs: The mediating role of intellectual capital and the moderating role of environmental dynamism. Technological Forecasting and Social Change, 177, 121513. https://doi.org/10.1016/j.techfore.2022.121513
Ali, I., Arslan, A., Tarba, S., & Mainela, T. (2023). Supply chain resilience to climate change inflicted extreme events in agri-food industry: The role of social capital and network complexity. International Journal of Production Economics, 264, 108968. https://doi.org/10.1016/j.ijpe.2023.108968
Ali, I., & Govindan, K. (2023). Extenuating operational risks through digital transformation of agri-food supply chains. Production Planning & Control, 34(12), 1165–1177. https://doi.org/10.1080/09537287.2021.1988177
Ardekani, Z. F., Sobhani, S. M. J., Barbosa, M. W., & de Sousa, P. R. (2023). Transition to a sustainable food supply chain during disruptions: A study on the Brazilian food companies in the COVID-19 era. International Journal of Production Economics, 257, 108782. https://doi.org/10.1016/j.ijpe.2023.108782
Chatterjee, S., Chaudhuri, R., Vrontis, D., & Thrassou, A. (2022). SME entrepreneurship and digitalization—The potentialities and moderating role of demographic factors. Technological Forecasting and Social Change, 179, 121648. https://doi.org/10.1016/j.techfore.2022.121648
Frau, M., Moi, L., Cabiddu, F., & Keszey, T. (2022). Time to clean up food production? Digital technologies, nature-driven agility, and the role of managers and customers. Journal of Cleaner Production, 377, 134376. https://doi.org/10.1016/j.jclepro.2022.134376
Khurana, I., Dutta, D. K., & Singh Ghura, A. (2022). SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem. Journal of Business Research, 150, 623–641. https://doi.org/10.1016/j.jbusres.2022.06.048
Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123, 642–656. https://doi.org/10.1016/j.jbusres.2020.10.033
Rahmadhani Dynasti, V., Andini, P., & Shaban Maligisa, H. (2025). Empowering local food industries through Decision Support System (DSS): A strategic model for sustainable MSME development in rural Indonesia. Journal of Supply Chain and Entrepreneurship, 1(3), 91–99. https://doi.org/10.64268/josce.v1i3.59
Scuotto, V., Nicotra, M., Del Giudice, M., Krueger, N., & Gregori, G. L. (2021). A microfoundational perspective on SMEs’ growth in the digital transformation era. Journal of Business Research, 129, 382–392. https://doi.org/10.1016/j.jbusres.2021.01.045
Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource orchestration to create competitive advantage: Breadth, depth, and life cycle effects. Journal of Management, 37(5), 1390–1412. https://doi.org/10.1177/0149206310385695
Soni, G., Kumar, S., Mahto, R. V., Mangla, S. K., Mittal, M. L., & Lim, W. M. (2022). A decision-making framework for Industry 4.0 technology implementation: The case of FinTech and sustainable supply chain finance for SMEs. Technological Forecasting and Social Change, 180, 121686. https://doi.org/10.1016/j.techfore.2022.121686
Tamvada, J. P., Narula, S., Audretsch, D., Puppala, H., & Kumar, A. (2022). Adopting new technology is a distant dream? The risks of implementing Industry 4.0 in emerging economy SMEs. Technological Forecasting and Social Change, 185, 122088. https://doi.org/10.1016/j.techfore.2022.122088
Tatik, T., & Setiawan, D. (2025). Does social media marketing important for MSMEs performance in Indonesia? Asia Pacific Journal of Marketing and Logistics, 37(1), 99–114. https://doi.org/10.1108/APJML-01-2024-0090
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Troise, C., Corvello, V., Ghobadian, A., & O’Regan, N. (2022). How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era. Technological Forecasting and Social Change, 174, 121227. https://doi.org/10.1016/j.techfore.2021.121227
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vroegindewey, R., Richardson, R. B., Ortega, D. L., & Theriault, V. (2021). Consumer and retailer preferences for local ingredients in processed foods: Evidence from a stacked choice experiment in an African urban dairy market. Food Policy, 103, 102106. https://doi.org/10.1016/j.foodpol.2021.102106
Zscheischler, J., Brunsch, R., Rogga, S., & Scholz, R. W. (2022). Perceived risks and vulnerabilities of employing digitalization and digital data in agriculture—Socially robust orientations from a transdisciplinary process. Journal of Cleaner Production, 358, 132034. https://doi.org/10.1016/j.jclepro.2022.132034
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Al Gore Alfarizi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
