Advances in Consumer Research
Issue:6 : 200-212
Original Article
A Conceptual Framework for Entrepreneurial Competencies Among Coffee Farmers: Development and Validation
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1
Telkom University, Indonesia
2
Universiti Sultan Zainal Abidin, Malaysia
Abstract

Agricultural entrepreneurship is a multifaceted field, with many enterprises being family-run and production-oriented, shaped by policies and access to knowledge. In Bandung Regency, coffee farmers operating within micro, small, and medium-sized enterprises (MSMEs) continue to rely on traditional cultivation methods to sustain their livelihoods and preserve local culture. However, they face persistent challenges, including low product quality, limited capital, outdated technology, weak partnerships, and insufficient innovation. Therefore, strengthening their entrepreneurial competencies in strategic management, adaptability, networking, and innovation is essential to enhance their competitiveness and sustainability. This study aims to develop and validate a Conceptual Framework of Entrepreneurial Competencies (CFEC) for coffee farmers, providing both theoretical grounding and empirical validation. A mixed-methods approach was employed, including a literature review, document analysis, and stakeholder interviews to identify key constructs, followed by a quantitative validation phase. Data were collected from 300 coffee farmers in Bandung Regency between October and December 2024 using a five-point Likert scale questionnaire. Exploratory factor analysis (EFA) identified five core competency dimensions—Strategic, Adaptability, Partnerships, Opportunity Recognition, and Innovation—comprising 27 valid indicators (KMO = 0.939; explained variance = 66.64%). Confirmatory factor analysis (CFA) using structural equation modeling (SEM) confirmed the model’s reliability (Cronbach's alpha > 0.7; composite reliability > 0.7) and validity (average variance extracted (AVE) > 0.5; root mean square error of approximation (RMSEA) = 0.079). Coffee farmers’ entrepreneurial competencies encompass five domains: Strategic and Planning; Adaptability and Communication; Partnerships and Collaboration; Opportunity Recognition; and Innovation and Risk-Taking. These domains cover business planning, opportunity utilization, networking, communication, and innovative risk-taking in coffee farm management. The Conceptual Framework of Entrepreneurial Competencies (CFEC) provides a context-specific model that reflects the realities of coffee farmers' entrepreneurial activities. This framework contributes to the theoretical field of competency-based entrepreneurship and, in practice, supports improved performance, innovation, and sustainability of agricultural enterprises

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