Enhancing Market Access for Smallholder Farmers in Indonesia: The Role of Managerial Capacity and Member Motivation in Collective Action within Farmer Groups

Rokhman PermadiLili Winarti

DOI 10.7160/aol.2025.170408
No 4/2025, December
pp. 101-115

Permadi, R. and Winarti, L. (2025) "Enhancing Market Access for Smallholder Farmers in Indonesia: The Role of Managerial Capacity and Member Motivation in Collective Action within Farmer Groups", AGRIS on-line Papers in Economics and Informatics, Vol. 17, No. 4, pp. 101-115. ISSN 1804-1930 DOI 10.7160/aol.2025.170408.

Abstract

competitive markets. The objective is to investigate the impact of managerial capacity and member motivation on collective action and market access among smallholder farmers in Indonesia. A survey was conducted with 249 kepok banana farmers belonging to farmer groups in Seruyan Regency, Central Kalimantan, Indonesia. Data were collected using a structured questionnaire that included demographic information and perceptions of managerial capacity, motivation, collective action, and market access. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to assess the relationships among the constructs. The results indicate that managerial capacity significantly enhances the role of farmer groups (β = 0.494, p < 0.001), while member motivation does not show a significant effect (β = 0.076, p = 0.290). The role of farmer groups significantly influences both collective action (β = 0.616, p < 0.001) and market access (β = 0.240, p < 0.001). Furthermore, collective action has a significant positive effect on market access (β = 0.479, p < 0.001). These findings underscore the critical role of farmer groups in organizing collective strategies to enhance market access. Managerial capacity is pivotal for successful collective action. Policymakers should strengthen farmer group institutions to foster collective action, reduce market barriers, and achieve sustainable agricultural growth.

Keywords

Agricultural development, economic resilience, institutional capacity, PLS-SEM

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