Institutional Resources Organization and Norms Influencing the Performance of Organic Rice Farmer Groups in South Sulawesi Indonesia

Abstract

HistoryOrganic farmers often face a number of institutional problems in developing organic rice farming businesses.Institutional structures are not yet well established, which has an impact on the development of organic agriculture.Some of the main institutional problems that hinder the development of organic agriculture include limited policy support, lack of knowledge and training, limited market access, complex standards and certification, and financial constraints.To address these issues, the objective of this study is to analyze the influence of institutional variables (resources, organization, and norms) on the institutional performance of organic rice farming businesses and their impact on the sustainability of organic agriculture in South Sulawesi.Data were collected from 147 respondents comprising six farmer groups located in Sidenreng Rappang and Pinrang districts.This study uses primary and secondary data and employs structural equation modeling (SEM) for analysis.The results indicate that the exogenous constructs-resources, organization, and norms-have a positive and significant influence on institutional performance (KKP) and the sustainability of organic agriculture (KPO), although their contribution to KPO remains limited.All relationships in the model are direct without mediation mechanisms, and among the three exogenous variables, resources are the factor with the greatest and most significant influence.These findings emphasize the importance of the availability and quality of resources in improving institutional performance and the sustainability of organic farming systems, thereby making the developed model a basis for the development of more targeted institutional policies and strategies.

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