Zidnal Falah

Digital Business Models In The Development Of Modern Agriculture: An Empirical Study In Farmer Communities

Introduction

Digital business models in the development of modern agriculture: an empirical study in farmer communities. Explore digital business models transforming modern agriculture in Cirebon's farmer communities. Boost market access & efficiency, address digital literacy, and foster sustainable growth.

Abstract

This research aims to analyze the application of digital business models in the development of modern agriculture, with a focus on the farming community in Cirebon Regency. The background of the research is based on the fact that the agricultural sector in Indonesia still faces various challenges such as low productivity, limited market access, and dependence on traditional distribution chains. Digital transformation is believed to be able to be a strategic solution to increase efficiency, expand market access, and strengthen the competitiveness of smallholders. This study uses a qualitative approach with a case study design. Data was collected through in-depth interviews with farmer group leaders and digital assistants, distribution of questionnaires to farmers who have participated in digitalization training, and field observations during one planting cycle. The results of the study show that the digital business model provides real benefits in the form of increased online market access, production recording efficiency, and local innovation opportunities. However, significant barriers remain, especially the limitations of digital literacy, internet infrastructure, and social resistance. Community-based adaptation strategies, such as the role of millennial farmers as digital agents and peer learning systems, have proven effective in supporting the transformation process. This study concludes that digital business models have great potential in strengthening the sustainability of modern agriculture, noting that there is more comprehensive ecosystem support.

Review

This research provides a timely and relevant exploration into the application of digital business models within modern agriculture, specifically focusing on farming communities in Indonesia's Cirebon Regency. The study effectively highlights the critical need for digital transformation to address persistent challenges such as low productivity, limited market access, and reliance on traditional distribution chains. Utilizing a robust qualitative approach with a case study design, incorporating in-depth interviews, questionnaires, and field observations, the authors provide compelling evidence of the tangible benefits, including enhanced online market access, improved production recording efficiency, and fostering local innovation. The identification of community-based adaptation strategies, such as the role of millennial farmers as digital agents and peer learning systems, underscores practical and effective pathways for grassroots digital adoption. While the study effectively illustrates the potential of digital transformation, it also candidly reveals significant barriers hindering widespread adoption. These include crucial limitations in digital literacy, inadequate internet infrastructure, and underlying social resistance within farming communities. From a methodological standpoint, the exclusive focus on farmers who have *already participated* in digitalization training, as indicated by the questionnaire distribution, might introduce a selection bias, potentially overlooking the experiences and specific barriers faced by those yet to engage with digital tools. Furthermore, conducting observations during "one planting cycle" offers a snapshot rather than a comprehensive long-term view, which could limit insights into the sustainability and evolving impact of these digital models over time. In conclusion, this empirical study provides valuable insights into the complex dynamics of integrating digital business models into traditional agricultural settings. It convincingly argues for the significant potential of these models in strengthening the sustainability and competitiveness of modern agriculture, particularly for smallholders. However, the research also importantly underscores that this potential can only be fully realized with comprehensive ecosystem support, directly addressing the identified challenges of infrastructure, literacy, and social acceptance. The findings offer practical implications for policymakers, agricultural extension services, and technology providers, emphasizing the need for targeted interventions and collaborative strategies. Future research could expand upon these findings by quantitatively assessing the long-term economic impacts, exploring scalability across diverse agricultural contexts, and delving deeper into specific policy frameworks required to cultivate a supportive digital ecosystem for farmers.

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