Institutional Entrepreneurship in the Robusta Coffee Value Chain: A Case from Lampung, Indonesia

Abstract

This study explores the identity, role, and impact of institutional entrepreneurship as a catalyst for transforming the Robusta coffee value chain in Lampung, Indonesia. It aims to understand how institutional entrepreneurs initiate, organize, and sustain governance innovations within agrifood systems. The research is grounded in institutional change theory and uses a qualitative approach. Data were collected through individual and group interviews, participant observation, and Focus Group Discussions (FGDs) conducted in 2015, followed by a desk study through 2024. The analysis focuses on a retired agricultural extension officer who became an institutional entrepreneur within the Kelompok Usaha Bersama (Joint Business Group, KUB) farmer group. This actor introduced key innovations, including price transparency, internal control systems, certification schemes, and capacity building. These interventions reshaped local practices and fostered institutional legitimacy across the value chain. The study finds that social and professional capital, participatory leadership, and strategic framing enable institutional entrepreneurs to address market failures and governance gaps. Outcomes include improved coffee quality, greater trust, and better market access. However, challenges remain, such as dependency on individual leadership, climate variability, and inadequate structural support. The findings underscore the need for policies that recognize and scale institutional entrepreneurship to drive inclusive, sustainable agribusiness transformation.