Business Models and Innovation in the Indonesian Smallholder Beef Value Chain

Abstract

This paper proposes a framework for identification of business models in smallholder cattle production and marketing that represents innovation behaviour. Cattle are vital to Indonesia’s smallholders’ livelihoods, and smallholder systems are key to serving the country’s growing demand for beef. Business incentives currently select against the development and sustainability of breeding systems which would support domestic production, and so new models are needed which utilize innovation. The three primary components of a business model are presented: its value proposition, its value architecture, and its financing mechanism. A research approach is provided, by way of mapping data needs to the business models, and proposing relationships between observed innovation practices and the business models within the value chain. For implementation, the paper provides guidance on facilitation needs and the role of stakeholders in the case of the Indonesian cattle and beef value chain.