Do dynamic capabilities, and entrepreneurial orientation promote farm resilience? Insights from indonesian beef-cattle farmers facing foot and mouth disease outbreak

Abstract

Past research has shown that dynamic capabilities (DC) and entrepreneur orientation (EO) can impact business performance. However, there has not been an in-depth examination of the impact of EO and DC on beef cattle farmers’ resilience when dealing with shocks, such as the foot and mouth disease (FMD) outbreak. This study aims to fill the gaps by investigating the influence of DC and EO on farmers’ resilience in dealing with the endemic foot and mouth disease (FMD). The cross-sectional data were collected from 206 beef cattle farmers in East Java, Indonesia, and analyzed using a partial least squares structural equation modeling (PLS-SEM). The findings confirm that DC and EO significantly improve farmers’ resilience in facing endemic FMD. The indirect effect shows similar results, where DC significantly impacts farmers’ resilience through EO. Based on the firm size, the finding indicates that EO and DC have a higher impact on micro-farms than small farms. This study suggest developing an entrepreneurship-related policy in livestock farming, especially to maintain farmers’ resilience in dealing with shocks.

Keywords

• Dynamics capabilities
• entrepreneur orientation
• foot and mouth disease
• resiliency
• Indonesia
• Development Studies